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  1. NRI Priority Banking
  2. NRI FAQ

NRI FAQ

Domestic / Resident Account Non Resident Ordinary (NRO) Accounts Non Resident External (NRE) Accounts Foreign Currency Non-resident (Bank) {FCNR (B)} Accounts
Not-permitted (1) Permitted (2, 3) Permitted (2, 3) Permitted (2, 3)
1. However a joint account with Resident Indian (RI) who is a close relative can be opened subject to following conditions
   • Mode of operation permitted is 'Either or Survivor' only
   • The RI will be the primary/first account holder in the joint account and NRI (PIO / OCI) will be the second applicant
2. A joint account with Resident Indian (RI) who is a close relative can also be opened subject to following conditions:
   • Mode of operation permitted is 'Former (NRI) or Survivor' only
   • The NRI (PIO / OCI) will be the primary/first account holder in the joint account and RI will be the second applicant
3. NRIs (including PIO / OCI) residing in Nepal or Bhutan are not permitted to open NRO account.
Domestic / Resident Account Non Resident Ordinary (NRO) Accounts Non Resident External (NRE) Accounts Foreign Currency Non-resident (Bank) {FCNR (B)} Accounts
Not-permitted (1) Permitted (2, 3, 4) Permitted (2, 3) Permitted (2, 3)
1. However a joint account with Resident Indian (RI) who is a close relative can be opened subject to following conditions
   • Mode of operation permitted is 'Either or Survivor' only
   • The RI will be the primary/first account holder in the joint account and NRI (PIO / OCI) will be the second applicant
2. A joint account with Resident Indian (RI) who is a close relative can also be opened subject to following conditions:
   • Mode of operation permitted is 'Former (NRI) or Survivor' only
   • The NRI (PIO / OCI) will be the primary/first account holder in the joint account and RI will be the second applicant
3. Following conditions applicable:
   • Pakistani National will require a prior approval from RBI before opening the account.
   • Bangladesh National to have a valid visa and residential permit issued by Foreigner Registration Office (FRO)/Foreigner Regional Registration Office (FRRO) concerned.
4. NRIs (including PIO / OCI) residing in Nepal or Bhutan are not permitted to open NRO account.
Domestic / Resident Account Non Resident Ordinary (NRO) Accounts Non Resident External (NRE) Accounts Foreign Currency Non-resident (Bank) {FCNR (B)} Accounts
Permitted in certain cases (1) Permitted (2, 3, 4) Permitted (2, 3) Permitted (2, 3)
1. When OCI comes to India with an intention to stay for an indefinite period and stays more than 182 days, he/she loses the privileges available to NRIs/PIOs/OCIs. Such OCI is required re- designate / convert his/her NRE/NRO/FCNR Accounts to resident account, or NRE/FCNB account to RFC account as the case may be. Further, an OCI can open all types of accounts allowed to a Resident customer.
2. A joint account with Resident Indian (RI) who is a close relative can also be opened subject to following conditions:
   • Mode of operation permitted is 'Former (NRI) or Survivor' only
   • The NRI (PIO / OCI) will be the primary/first account holder in the joint account and RI will be the second applicant
3. Following conditions are applicable:
   • Pakistani National will require a prior approval from RBI before opening the account.
   • Bangladesh National to have a valid visa and residential permit issued by Foreigner Registration Office (FRO)/Foreigner Regional Registration Office (FRRO) concerned.
4. NRIs (including PIO / OCI) residing in Nepal or Bhutan are not permitted to open NRO account.
Domestic / Resident Account Non Resident Ordinary (NRO) Accounts Non Resident External (NRE) Accounts Foreign Currency Non-resident (Bank) {FCNR (B)} Accounts
Permitted (1) Not-permitted (1, 2) Not-permitted Not-permitted
1. Following conditions are applicable:
   • Pakistani National will require a prior approval from RBI before opening the account.
   • Bangladesh National to have a valid visa and residential permit issued by Foreigner Registration Office (FRO)/Foreigner Regional Registration Office (FRRO) concerned.
2. Foreign nationals who come to India on employment and on leaving the India can convert their Domestic account to NRO account, to enable them to receive their legitimate dues subject to certain conditions. But, continuation of account beyond 6 months will require RBI’s approval.
Domestic / Resident Account Non Resident Ordinary (NRO) Accounts Non Resident External (NRE) Accounts Foreign Currency Non-resident (Bank) {FCNR (B)} Accounts
Not-permitted Permitted (1,2) Not-permitted Not-permitted
1. Following conditions are applicable:
   • Pakistani National will require a prior approval from RBI before opening the account.
   • Bangladesh National to have a valid visa and residential permit issued by Foreigner Registration Office (FRO)/Foreigner Regional Registration Office (FRRO) concerned.
2. NRO account be opened for Foreign Students studying in India on the basis of his/her passport (with appropriate visa & immigration endorsement) which contains the proof of identity and address in the home country along with a photograph and a letter offering admission from the educational institution, subject to following:
   • Within a period of 30 days of opening the account, the foreign student should submit to the branch where the account is opened, a valid address proof giving local address, in the form of a rent agreement or a letter from the educational institution as a proof of living in a facility provided by the educational institution. Banks should not insist on the landlord visiting the branch for verification of rent documents and alternative means of verification of local address may be adopted by banks.
   • During the 30 days period, the account should be operated with a condition of allowing foreign remittances not exceeding USD 1,000 into the account and a cap of monthly withdrawal to Rs. 50,000/-, pending verification of address.
   • On submission of the proof of current address, the account would be treated as a normal NRO account, and will be operated in terms of extant instructions.
Domestic / Resident Account Non Resident Ordinary (NRO) Accounts Non Resident External (NRE) Accounts Foreign Currency Non-resident (Bank) {FCNR (B)} Accounts
Not-permitted Permitted (1, 2) Not-permitted Not-permitted
1. Following conditions applicable:
   • Pakistani National will require a prior approval from RBI before opening the account.
   • Bangladesh National to have a valid visa and residential permit issued by Foreigner Registration Office (FRO)/Foreigner Regional Registration Office (FRRO) concerned.
2. Continuation of account beyond 6 months will require RBI’s approval.
  • After the review of the Foreign Exchange Regulations Act, 1973 in 1993 significant developments have taken place since then such as substantial increase in country’s foreign exchange reserve, growth in foreign trade, rationalization of tariffs, current account convertibility, liberalization of Indian investments abroad, increased access to external commercial borrowings by Indian corporate and participation of foreign institutional investors in country’s major stock markets. Taking into consideration the above facts the Central Government decided to introduce the Foreign Exchange Management Act, 1999 and repeal the Foreign Exchange Regulations Act, 1973 with a view to consolidate and amend the law relating to foreign exchange with the objectives of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange markets in India. The FEMA 1999 has come into force on the 1st day of June 2000 and the FERA, 1973 stands repealed.
  • It is an act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
  • The Foreign Exchange Management Act, 1999(FEMA), has come into force with effective from June 1, 2000 (in place of FERA 1973). This act provides legal framework for administration of exchange control in India.
  • FEMA extends to the whole of India. It shall also apply to all branches, offices and agencies owned or controlled by a person resident of India and also to any contravention there under, committed in or, outside India, by any person to whom the Act applies.
  • Capital account transactions means a transaction which alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India or assets or liabilities in India of persons resident outside India, and includes transactions referred to sub-section (3) of section 6 of FEMA 1999.
  • A transaction other than a capital account transaction is a current account transaction. To be precise, payments in connection with foreign trade, services and other miscellaneous remittances are current account transactions, which are guided by FEMA (current account transactions) rules 2000.
  • Authorized dealers in foreign exchange are those Banks/entities in India permitted by Reserve Bank of India under section 10 of the Foreign Exchange Management Act, 1999, which alone are entitled to engage in foreign exchange transactions with each other, with non-residents and with resident non-banking clients for certain approved purposes.
  • The foreign currency which is freely convertible i.e. a currency which is permitted by the rules and regulations of the country concerned to be converted into major reserve currencies like US Dollars, Pound Sterlling, Euro etc for which a fairly active market exist for dealings against the major currencies.
  • Yes. Authorized dealers may freely open and maintain accounts in any permitted currency with their branches and correspondents abroad.
  • Banks holding authorized dealer’s license (i.e banks authorized to deal in foreign exchange) or banks specifically authorized in this behalf by the Reserve Bank of India can only maintain accounts in the names of NRIs. Certain co-operative / Commercial banks (referred to as authorized banks) have been specifically permitted to maintain accounts of NRIs expressed in rupees even though they are not authorized dealers.
  • No. Persons resident in Bhutan and Nepal cannot normally open NRE accounts/FCNR deposits except where the funds to these accounts are remitted in free foreign exchange. Interest earned on these accounts can be remitted only in Indian Rupees to NRIs/PIOs in Nepal & Bhutan.
  • Yes. NRI accounts can be opened in the name of crewmembers of shipping companies if their posting is not based in India and they derive their income from abroad in foreign currency.
  • Yes, there is no prohibition to open and maintain multiple accounts.
  • NRI can open accounts from abroad by sending duly filled and signed account opening form attested by Indian Consulate/Indian Embassy/Notary along with attested copies of passport and photograph (passport size).
  • Following documents need to be submitted by NRI to open an NRE Account: If NRIs visiting the branch personally:
    • The photocopy of the relevant pages of the current passport where the name, address, date of birth, date and place of issue, expiry date, photograph, signature and stamp regarding stay outside India appear.
    • Photocopy of valid work permit/employment visa. If the visa has expired, then the copy of the duly acknowledged petitions made to the visa authorities for renewal of visa has to be submitted.
    • Documentary proof for present address.
    • Recent passport size photograph.
  • Additional documents required for Minor Accounts.
    • Minor’s birth certificate.
    • Photocopy of guardian’s passport and guardians photograph (signed on the front).
  • Account opening forms sent through post / courier: above documents should be attested by notary/ Indian Consulate / High Commission / Embassy or Banker abroad.
  • To download Account Opening Form click here
  • Following documents have to submit by PIO to open NRE Accounts:
    • Copy of the relevant pages of the current passport.
    • At least one of the following:
      • Copy of the PIO Card*
      • Copy of past Indian Passport of Self/Parent/Grandparent along With a self- declaration about Indian origin: or
      • Self – declaration for PIO.
    • Documentary Proof for present address.
    • Recent passport size photograph.
    • Account opening forms sent through post/courier: Above documents should be attested by notary/Indian consulate/high commission/embassy or banker abroad.
    • To download Account Opening Form click here
  • Yes, an individual taking up an employment, business, vocation etc. can complete the account opening formalities prior to going abroad with zero balance. Subsequently, he/she must remit funds to make the account operative within a reasonable time, where after only cheque book will be issued.
  • NRI accounts (NRE/FCNR/NRO) are accounts held by Banks in India. In order to open an account, the Account Opening Form duly filled in must be sent to a branch of their choice in India.
  • Yes. Account can be accessed through Internet/Mobile Banking.
  • Any person resident outside India defined in Regulation 2 of FEMA Notification No. 5 dated May 3, 2000 may open NRO account with an authorized Bank for the purpose of putting through bonafide transactions denominated in Rupees, not involving any violation of the provisions of FEMA, Rules, Regulations made there under.
  • Opening of accounts by individuals/entities of Bangladesh/Pakistan nationality/ownership requires prior approval of Reserve Bank of India.
  • Types of Accounts, NRO Accounts may be opened/ maintained in the form of:
    • NRO Savings Bank Account.
    • NRO Current Account.
    • NRO Term Deposits.
    • NRO Cumulative term deposits.
  • To download Account Opening Form click here
  • The following credits are permitted:
    • Proceeds of remittances in any permitted foreign currency from abroad through normal banking channel which is freely convertible.
    • Any permitted foreign currency tendered by the account holder during his/her temporary visit to India. Foreign Currency exceeding USD 5,000 or its equivalent in the form of foreign currency notes should be supported by Currency Declaration Form (CDF).Rupee funds should be supported by encashment certificate, if they represent funds brought from outside India.
    • Transfers from rupee accounts of Non-Resident Bank accounts.
    • Legitimate dues in India of the account holder. This includes current income like rent, dividend, pension, interest, etc as also sale proceeds of assets including immovable property acquired out of rupee/foreign currency funds or by way of legacy/inheritances.
  • The following Debits are permitted: a) All local payments in rupees, including payments for investments in India subject to the compliance with the relevant regulations made by the Reserve Bank. b) Remittance (net of applicable taxes) outside India of current income like rent, dividend, pension, interest in India of the account holder. c) Remittance up to USD one million, per financial year (April-March), for all bonafide purposes, to the satisfaction of the authorized dealer bank.
  • Yes. Account may be jointly held with Resident or Non Residents.
  • There is no restriction to number of joint account holders.
  • Yes, Interest earned on NRO accounts can be repatriated subject to payment of tax.
  • Repatriation of balance held in NRO account is allowed up to US dollars 1 million per financial year (April-March) including sale proceeds of immovable properties held by NRIs/PIOs subject to payment of applicable taxes.
  • The Interest rates are as applicable as for domestic deposit account and are subject to change from time to time. The Interest income earned on NRO accounts attracts income tax.
  • When customer becomes Non-resident, his/her account should be re-designated to an NRO (Non-Resident Ordinary) account.
  • YES. By complying FEMA guidelines and relevant supporting documents, funds from NRO account can be transferred to NRE/FCNR account.
  • To download application click here
  • NRO Savings Account can be opened in Joint names with resident or non-resident Indian(s). Alternately, non-resident can give authorization to an Indian resident to operate the account by submitting a mandate letter.
  • Yes, NRIs can nominate either a resident or a non-resident as Nominee. However, only one nominee is permitted per account. Nominee can also be a minor in which case, guardian has to be appointed to receive payment on minor’s behalf.
  • Yes. Travellers Cheques can be used to credit/open the account. NRIs bringing Foreign Currency Notes & Travellers Cheques will have to submit a Currency Declaration Form (CDF) to the customs authorities on arrival in India, if the foreign currency notes exceed USD 5,000 or combined value of Travellers Cheques and notes exceed USD 10,000. They must produce the CDF for endorsement to the Bank.
  • Yes. Loan can be granted against NRO Deposits. Provided the loan/overdraft can be used for personal purposes or for carrying on business activities other than (a) Relending (b) Agricultural/Plantation activities. (c) Real Estate Business.
  • No. This is not permitted since NRO is non-repatriable account.
  • When a person resident in India leaves for a country (other than Nepal or Bhutan) for taking up employment or for carrying on business or vocation outside India or for any other purpose indicating his intention to stay outside India for an uncertain period, his existing account should be designated as a Non-resident (Ordinary) account.
  • In case a person resident in India leaves for Nepal or Bhutan for taking up employment or for carrying on business or vocation or for any purposes indicating his intention to stay in Nepal or Bhutan for an uncertain period, his existing account will continue as a resident account. Such account should not be designated as Non-Resident (Ordinary) Account.
  • NRO/NRE accounts may be re-designated as resident Rupee accounts on return of the account holder to India for taking up employment, or for carrying on business or vocation or for any other purpose indicating his intention to stay in India for an uncertain period. In case if he/she is only on a temporary visit to India, the account should continue to be treated as non-resident during such visit.
  • The Non-resident Indians (NRIs) and Persons of Indian origin (PIOs) are permitted to open and maintain Non-resident (External) accounts with authorized Banks. Note: The account should be opened by the non-resident account holder himself and not by the holder of power of attorney in India.
  • Non-resident (External) Rupee accounts may be opened/maintained in the form of:
    • NRE Savings Bank Account.
    • NRE Current Account.
    • NRE Term Deposits.
    • NRE Cumulative term deposits.
  • YES. NRIs/ PIOs can hold jointly with a resident relative on ‘former or survivor’ basis (relative as defined in Companies Act, 2013). The resident relative can operate the account as a Power of Attorney holder during the life time of the NRI/ PIO account holder.
  • No, NRIs residing in different countries may open joint accounts.
  • The following credits are permitted:
    • Proceeds of remittances to India in any permitted currency.
    • Proceeds of personal cheques drawn by the account holder on his foreign currency accounts, travelers cheques, bank drafts deposited by the account holder in person during his temporary visit to India. The travelers cheques (issued outside India) bank drafts should be standing/endorsed in the name of account holder.
    • Proceeds of foreign currency/bank notes tendered by the account holder during his temporary visit to India and should be supported by Currency Declaration Form wherever applicable.
    • Transfers from other NRE/FCNR accounts.
    • Interest accruing on the funds held in account.
    • Interest on Government securities and dividend on units of mutual funds, provided the securities/units were purchased by debit to the account holder’s NRE/FCNR account or out of Inward remittance through normal banking channels.
    • Maturity proceeds of Government securities provided they were originally purchased by debit to the account holders NRE/FCNR account or out of remittances received from outside India in free foreign exchange.
    • Refund of share/debenture subscriptions to new issues of Indian companies or portion thereof, if the amount of subscription was paid from the same account or from other NRE/FCNR account of the account holder or by remittance from outside India through normal banking channels.
    • Refund of application/earnest money/purchase consideration made by the house building agencies/seller on account of non-allotment of flat/plot/cancellation of booking/deals for purchase of residential/commercial property, together with interest if any (net of Income tax payable thereon), provided the original payment was made out of NRE/FCNR account of the account holder or remittance from outside India through normal banking channels.
  • The following debits are permitted:
    • Local disbursements.
    • Remittances outside India.
    • Transfer to NRE/FCNR account of the account holder or any other person eligible to maintain such account.
    • Investment in shares/securities/commercial paper of an Indian company or for purchase of immovable property in India provided such investment/purchase deals covered by the regulations made, or the general/special permission granted by the Reserve Bank.
  • Yes. Funds held in NRE accounts can be repatriated outside India freely.
  • The minimum period is one year and the maximum period is ten years.
  • Deposits are value dated. The date will be the date on which the funds are received by the Bank in its Nostro Account.
  • Yes. However, this is subject to the levy of a penalty and at the discretion of the bank.
  • No. While the premature withdrawal would be allowed, no interest would be payable. For such premature withdrawals the bank may levy penalty as per their discretion.
  • Yes. NRI can withdraw permissible amount in abroad from his NRE account by using International ATM cum debit card.
  • The interest rate on NRO/NRE deposits is same as domestic deposit interest rate at the discretion of the bank. However, for NRE deposits interest cannot be paid on deposits below 1 year period as per RBI guideline.
  • No. Balances held in NRE accounts are tax free
  • Yes. Freely repatriable.
  • Yes. Rupee loans in India against security of the funds held in the NRE account to the account holder is permitted.
  • Yes. Rupee loans in India against security of the funds held in the NRE account to the third party is permitted.
  • Yes. However, these loans cannot be utilized for the purpose of relending, or carrying on agricultural or plantation or investment in real estate business.
  • Yes. Funds can be freely transferred from one NRE account to another NRE account.
  • Yes. NRI on becoming resident can convert his NRE balances into RFC account.
  • Balance held in NRE account can be repatriated abroad freely, whereas funds in NRO account be remitted abroad but used only for local payments in rupees. Consequently, funds remitted from abroad or local funds which can otherwise be remitted abroad to the account holder can only be credited to NRE accounts. Funds which do not qualify, under the Exchange control regulations, for remittance outside India are required to be credited to NRO accounts.
  • Travelers Cheques can be used to credit NRE account. NRIs bringing Foreign currency Notes/Travelers cheques will have to submit a Currency Declaration Form (CDF) to the customs authorities on arrival in India, if the foreign currency notes exceeds USD 5,000 or combined value of Travelers Cheques or Foreign Currency notes exceeds USD 10,000 they must produce the CDF for endorsement.
  • Yes, NRIs can nominate either a resident or a non-resident as Nominee. However, only one nominee is permitted per account. Nominee can also be a minor in which case, guardian has to be appointed to receive payment on minor’s behalf.
  • A returning Indian’s NRE/FCNR accounts will be designated as Resident account. However, they will continue to run till maturity at the contracted rate of Interest.
  • Rupee Accounts
    • Ordinary Non-Resident Accounts (NRO)
    • Non-Resident (External) Accounts
  • Foreign Currency Accounts
    • Foreign Currency (Non-Resident) Accounts (FCNR)
    • Resident Foreign Currency (RFC) Account (for returning Indians)
  • Government dated securities/treasury bills.
  • Units of domestic mutual funds.
  • Bonds issued by a public sector undertaking (PSU) in India.
  • Non-convertible debentures of a company incorporated in India.
  • Shares in Public Sector Enterprises being disinvested by the Government of India, provided the purchase is in accordance with the terms and conditions stipulated in the notice inviting bids.
  • Shares and convertible debentures of Indian companies under FDI scheme (Including automatic route & FIPB).
  • Shares and convertible debentures of Indian companies through stock exchange under Portfolio Investment Scheme.
  • Perpetual debt instruments and debt capital instruments issued by banks in India.
  • Government dated securities (other than bearer securities)/treasury bills.
  • Units of domestic mutual funds.
  • Units of Money Market Mutual Funds in India.
  • Non-convertible debentures of a company incorporated in India.
  • The capital of a firm or proprietary concern in India, not engaged in any agricultural or plantation activity or real estate business.
  • Deposits with a company registered under the Companies Act, 1956 including NBFC registered with RBI, or a body corporate created under an Act of Parliament or State Legislature, a proprietorship concern or a firm out of rupee funds which do not represent inward remittances or transfer from NRE/FCNR (B) Accounts into the NRO Accounts.
  • Commercial Paper issued by an Indian company.
  • Shares and convertible debentures of Indian company other than under Portfolio Investment Scheme.
  • May acquire immovable property in India other than agricultural land/plantation property or a farmhouse out of repatriable and non-repatriable funds.
  • May continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India, if such currency, security or property was acquired, held or owned when resident outside India.
  • May open, hold and maintain with an authorized dealer in India a Resident Foreign Currency (RFC) Account to transfer balances held in NRE/FCNR (B) accounts. Proceeds of assets held outside India at the time of return, can be credited to RFC account. The funds in RFC accounts are free from all restrictions regarding utilization of foreign currency balances including any restriction on investment in any form outside India.
  • When an Indian resident leaves India for a county (other than Nepal or Bhutan) for taking up employment, business or vacation outside India or for any other purpose indicating his intention to stay outside India permanently or for an uncertain period, he becomes a person resident outside India. He will have the option of designating his account as Non-Resident Ordinary account.
  • Immediately upon return of the account holder to India for taking up employment or for carrying on business or vocation or for any other purpose indicating his/her intention to stay in India for an uncertain period, a non-resident becomes resident.
  • No. Banks have been advised to continue to pay interest at the contacted rate till the maturity of the deposit if the deposit is held for the full term even after conversion into resident rupee account.
  • Yes, on return to India, NRI need not declare or surrender their foreign currency assets and the income earned thereon.
  • Yes. They can be held in RFC (Resident Foreign Currency) Accounts either in the form of Current/Savings/Fixed deposit accounts.
  • Non-resident Indian citizens who come to India on temporary vists i.e for purpose other than employment, business etc, indicating no intention to stay in India indefinitely, even if this stay in India exceeds 182 days, will continue to be treated as Non-Residents.
  • An Individual is treated to be Not Ordinarily Resident in India in any previous year if he/she-
    • Has been a non-resident in India in 9 out of the 10 previous years preceding the previous year, or
    • Has during the seven previous years preceding that year, been in India for a period of or periods amounting in all to 729 days or less.
Particulars FCNR (B) NRE Account NRO Account
Who can open an account NRIs (Individuals /entities of Bangladesh/Pakistan nationality/ownership require prior approval of RBI) NRIs(Individuals, entities of Bangladesh /Pakistan nationality /ownership require prior approval of RBI) Any person resident outside India (other than a person resident in Nepal and Bhutan). (Individuals / entities of Bangladesh/Pakistan nationality /ownership as well as erstwhile OCBs require prior approval of RBI)
Joint Account In the name of two or more non-resident individuals In the name of two or more non-resident individuals May be held with residents
Nomination Permitted Permitted Permitted
Currency in which accounts denominated Permitted Currencies Indian Rupees Indian Rupees
Repatriable Repatriable Repatriable Not repatriable except for the following: 1) Current Income 2) Up to USD 1 million per financial year (April-March), for any bonafide purpose out of the balance in the account/sale proceeds of assets in India acquired by way of inheritance/legacy inclusive of assets acquired out of settlement subject to certain conditions.
Type of Account Term Deposits only Savings, Current, Recurring, Fixed Deposit Savings, Current, Recurring, Fixed Deposit
Period for fixed deposits For terms not less than 1 year and not more than 5 years At the discretion of the Bank As applicable to resident accounts
Rate of Interest Linked to Alternative Reference Rate (ARR) SB Account: Interest rate shall be at the rate applicable to domestic savings account
Banks are free to determine interest rates for term deposits		 Banks are free to determine interest rates for term deposits
  • Section 2 (v) and Section 2 (w) of the FEMA, 1999 defines ‘person resident in India’ and a ‘person resident outside India’ defined.
  • As per FEMA, residential status is determined by operation of law. Reserve Bank does not determine the residential status. The onus is on an individual to prove his/her residential status, if questioned by any authority.
  • Under FEMA 1999, a person resident in India is defined as a person residing in India for more than one hundred and eighty two days during the course of preceding financial year (April-March) and who has come to or stays in India either for taking up employment, carrying on business or vocation in India or for any other purpose, that would indicate his intention to stay in India for an uncertain period. In other words, to be treated as ‘a person resident in India’ under FEMA 1999, a person has not only to satisfy the condition of the period of stay (being more than 182 days during the course of the preceding financial year) but has also to comply with the condition of the purpose/intention of stay.
  • Foreign nationals resident in India can open and maintain resident Rupee account in India.
  • Yes, Foreign tourists during their short visit to India can open a Non-Resident (Ordinary) Rupee (NRO) account with any bank dealing in foreign exchange. Such account can be opened up to a maximum period of 6 months.
  • Funds remitted from outside India or those obtained by sale of foreign exchange brought by the tourists to India can be credited to the NRO account.
  • Persons resident in India are permitted to maintain foreign currency accounts in India in the form of Exchange Earners Foreign Currency Accounts, Resident Foreign Currency Accounts (for returning Indians i.e. those Indians who were non-resident earlier), and Resident Foreign Currency (Domestic) Accounts.
  • YES. Resident saving account holder can have NRI as joint holder on "Either or Survivor" basis subject to the following conditions:
    • Such account will be treated as resident bank account for all purposes and all regulations applicable to a resident bank account shall be applicable.
    • Cheques, instruments, remittances, cash, card or any other proceeds belonging to the NRI close relative shall not be eligible for credit to this account.
    • The NRI close relative shall operate such account only for and on behalf of the resident for domestic payment and not for creating any beneficial interest for himself.
    • Where the NRI close relative becomes a joint holder with more than one resident in such account, such NRI close relative should be the close relative of all the resident bank account holders.
    • Where due to any eventuality, the non-resident account holder becomes the survivor of such an account, it shall be categorized as Non-Resident Ordinary Rupee (NRO) account as per the extant regulations.
    • Onus will be on the non-resident account holder to keep AD bank informed to get the account categorized as NRO account and all such regulations as applicable to NRO account shall be applicable.
    • The above joint account holder facility may be extended to all types of resident accounts including savings bank account
  • For the purpose of investments in India a Non Resident Indian (NRI) means a person resident outside India or who is a citizen of India or is a person of Indian origin.
  • Non-Resident Indian nationals generally fall under the following broad categories:
    • Indian citizens who stay abroad for employment or for carrying on any business or vocation or for any other purpose, in circumstances indicating an indefinite period of stay outside India.
    • Indian citizen working abroad on assignment with foreign governments, Government agencies or international/multination agencies like United Nations Organization (UNO), International Monetary Fund (IMF), World Bank etc.
    • Officials of central and State Governments and Public sector undertakings deputed abroad on assignments with foreign governments/agencies/organizations or posted to their won offices (including Indian Diplomatic Missions) abroad.
    • Student who has gone abroad for studies.
  • For the purposes of availing of the facilities of opening and maintenance of bank accounts and investment in shares/securities in India, a foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be a person of India origin, if,
    a) he/she at any time held an India passport,
    OR
    b) he/she or either of his/her parents or any of his/her grandparents were a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
    OR
    c) the person is a spouse of an Indian citizen or a person referred to in Sub-clause (a) or (b).
    Note:
    1. Spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or a person of Indian origin is also treated as a person of India origin for the above purposes provided the bank accounts are opened or investments in share/securities in India are made by such persons only jointly with their NRI spouses.
    2. For investments in immovable properties A foreign citizen (other than a citizen of Pakistan, Bangladesh, Sri Lanka. Afghanistan, China, Iran, Nepal or Bhutan), is deemed to be of Indian origin if, (i) He/She held an Indian passport at any time, or (ii) He/She or His/Her father or paternal grand-father was a citizen of India by virtue of the constitution of India or the citizenship Act 1955, (57 of 1955).
    Example:
    Mr. Vimal Verma, an Indian citizen on being employed in USA settles there and becomes a “Non-Resident Indian”. Mr Vimal Verma subsequently acquires American citizenship as per American law. He marries Ms Merry an American citizen of non-Indian parentage. Their son Ram Verma also becomes an American citizen. The status of Mr. Vimal Verma and his family shall be as under:
    i. Mr. Vimal Verma becomes a “Person of Indian Origin” on acquiring American citizenship since he was an Indian citizen earlier.
    ii. Mrs. Merry shall also be treated as a “Person of Indian Origin” being wife of Mr. Vimal Verma, a Person of Indian Origin (except for the purpose of acquiring or transferring an immovable property in India).
    iii. Mr. Ram Verma, son of Mr. Vimal Verma will be person of Indian origin since his father was an Indian citizen earlier.
    iv. The grandchildren of Mr. Vimal Verma shall also be treated as “Person of Indian Origin” since their grandfather was an Indian citizen earlier.
    (*The Government announced / introduced on 31.03.1999 PIO card for Persons of Indian Origin having foreign passports and living abroad. This scheme is broad-based, covers up to 4 generations and also the foreign spouse of a citizen of India or a PIO).
  • Yes, AD can sanction loans in India to the account holder/ third parties without any limit, subject to usual margin requirements. These loans cannot be repatriated outside India and can be used in India only for the purposes specified in the regulations.
  • In case of loans sanctioned to a third party, there should be no direct or indirect foreign exchange consideration for the non-resident depositor agreeing to pledge his deposits to enable the resident individual/ firm/ company to obtain such facilities.
  • In case of the loan sanctioned to the account holder, it can be repaid either by adjusting the deposits or through inward remittances from outside India through banking channels or out of balances held in the NRO account of the account holder.
  • The facility for premature withdrawal of deposits will not be available where loans against such deposits are availed of.
  • Loans can be taken for the following activities.
    • For personal purposes or for carrying on business activities.
    • For direct investment in India on non-repatriation basis by way of contribution of the capital of Indian firms/companies.
    • For acquisition of a flat/house in India for own residential use.
  • The loan cannot be used for the purpose of re-lending, carrying on agriculture or plantation activities or for investment in real estate business.
  • Yes. Rupee loans can be taken against NRE/FCNR deposits in India by the depositor himself
  • Yes. Loan can be given to third parties in India on the security on NRE/FCNR deposits
  • Yes. Loans can be taken abroad against the security of these deposits by the depositor
  • Yes. loans can be taken abroad by third parties against the security of these deposits
  • AD can sanction loans in India to the account holder/ third parties without any limit, subject to usual margin requirements. These loans cannot be repatriated outside India and can be used in India only for the purposes specified in the regulations.
  • In case of loans sanctioned to a third party, there should be no direct or indirect foreign exchange consideration for the non-resident depositor agreeing to pledge his deposits to enable the resident individual/ firm/ company to obtain such facilities.
  • In case of the loan sanctioned to the account holder, it can be repaid either by adjusting the deposits or through inward remittances from outside India through banking channels or out of balances held in the NRO account of the account holder.
  • The facility for premature withdrawal of deposits will not be available where loans against such deposits are availed of.
  • The loans raised against NRE deposits can be repaid out of NRO funds.
  • India accounts. Such accounts are at par with other resident Rupee No. With the introduction of are treated as resident Foreign Exchange Management Act, 1999, the accounts opened by foreign nationals who are resident in accounts.
  • Yes. Foreign nationals resident in India can open and maintain resident Rupee account in India.
  • From the foreign exchange point of view, no monitoring is required. However, the banks are free to put in place such administrative arrangements as considered necessary for a smooth conduct of accounts, especially in cases where it is likely that a request for repatriation of funds outside India will be made.
  • Yes. But AD-Category I banks should ensure that the funds to be repatriated outside India were either received from abroad or are of repatriable in nature or are permissible in terms of RBI notification No.FEMA.13/2000 dated 3rd May 2000 as amended from time to time.
  • In terms of GOI Notification No. SO. 301(E) dated March 30, 2001, banks are free to allow remittance for maintenance of close relatives abroad not exceeding net salary (after deduction of taxes, contribution to provident fund and other deductions) of a person who is resident but not permanently resident in India and is a citizen of a foreign state other than Pakistan.
  • Yes. Foreign tourists during their short visit to India can open a Non-Resident (Ordinary) Rupee (NRO) account with any bank dealing in foreign exchange. Such account can be opened up to a maximum period of 6 months
  • Funds remitted from outside India or those obtained by sale of foreign exchange brought by the tourists to India can be credited to the NRO account
  • Yes. Tourists can freely make local payments by debit to the NRO account.
  • Banks have been allowed to convert the balance in the account at the time of departure of the tourists into foreign currency provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than interest accrued thereon.
  • In such cases, applications for repatriation of balance may be made on plain paper to the concerned Regional Office of Reserve Bank. (Ref: ID/CIR/ALL/23/2007-08 dated January 11, 2008).
  • Yes, NRIs can nominate either a resident or a non-resident as Nominee. However, only one nominee is permitted per account. Nominee can also be a minor in which case, guardian has to be appointed to receive payment on minor’s behalf.
  • The banking Companies (nomination) rules, 1985, framed under Banking Regulation act, 1949, enable banks to pay the amount standing to the credit of the deceased depositors to his/her nominee.
  • Funds held in the NRO account of the deceased NRI will be allowed to be credited to the non-resident nominee’s NRO account only and no repatriation is permitted. Repatriation of funds from the deceased person’s NRE account to the non-resident nominee is permitted?
Sl.No Foreign Currency Correspondent Bank Account Details
1. USD The Bank of New York Mellon, New York. USA Account Number: 8033166096
SWIFT Code: IRVTUS3N
CHIPS ABA: MBR001
FEDWIRE (Routing Number): 021000018
2. USD Citi Bank, NA, New York, USA Account Number: 36252322
SWIFT Code: CITIUS33
CHIPS ABA: 0008
FEDWIRE (Routing Number): 021000089
3. EURO Commerzbank AG, Frankfurt, Germany Account Number: 400-87-50960-00
SWIFT Code: COBADEFF
4. EURO Standard Chartered Bank, Frankfurt, Germany Account Number: 500110301
SWIFT Code: SCBLDEF
IBAN: DE 25512305000500110301
5. GBP Standard Chartered Bank, London, UK Account Number: 01252498801
SWIFT Code: SCBLGB2L
IBAN: GB05SCBL60910412524988
Sort Code: 60-91-04
6. CAD ICICI BANK, CANADA Account Number: 102213511
SWIFT Code: ICICCATT
7. CHF The Bank of New York Mellon (BoNY), New York, USA KBL Account Number with
BoNY: 8033005947
SWIFT Code: IRVTUS3N
Intermediary Bank:
Credit Suisse, Switzerland		 BoNY Account with Credit Suisse:
CH3904835098464083000 (IBAN)
SWIFT Code: CRESCHZZ80A
8. JPY The Bank of New York Mellon, New York, USA Account Number: 8033103019
SWIFT Code: IRVTUS3N
Intermediary Bank:
Mizuho Bank Ltd, Tokyo		 BoNY Account Number with Mizuho Bank Ltd,
Tokyo: 0321010
SWIFT Code: MHCBJPJT
9. SGD Bank of India, Singapore Account Number: 650120501000507
SWIFT Code: BKIDSGSG
10. AUD The Bank of New York Mellon (BoNY)
New York, USA		 KBL Account Number with
BoNY: 8033040130
SWIFT Code: IRVTUS3N
Intermediary Bank:
National Australia Bank Limited (NAB)		 BoNY Account with (NAB):
1803007285500
SWIFT Code: NATAAU33
National Clearing Code: 083-011
11. HKD Standard Chartered Bank, Hongkong Account Number: 447-094-355-79
SWIFT Code: SCBLHKHH
12. AED Mashreq Bank PSC, Dubai Account Number: 0195511404
SWIFT Code: BOMLAEAD
IBAN: AE410330000010195511404
13. SEK The Bank of New York Mellon (BoNY), New York, USA KBL Account Number with BoNY: 8033047828
SWIFT Code: IRVTUS3N
Intermediary Bank:
Skandinaviska Enskilda Banken,
Stockholm		 BoNY Account with Skandinaviska
Enskilda Banken, Stockholm:
SE7450000000052018513303 (IBAN)
SWIFT Code: ESSESESS
  • Banks may allow operations on an NRE account in terms of Power of Attorney or other authority granted in favour of a resident by the non-resident account holder.
  • No. NRE accounts cannot be opened by the power of attorney holder in India on behalf of a non-resident.
  • Yes, NRI can appoint a resident as his Power of Attorney holder to make all his local payment in rupees from his NRE/NRO accounts, including payments for eligible investments subject to compliance with relevant regulations made by Reserve Bank of India from time to time. A Power of Attorney holder can repatriate back the funds only to the NRI account holder.
  • A Power of Attorney holder of NRI account cannot do the following acts:
    • Open and close NRI accounts in the name of NRI.
    • Repatriate funds from accounts in the form of Demand draft/Telegraphic Transfer/etc.
    • Make payment by way of gifts.
    • Transfer funds to other NRE accounts.
    • Cannot rise loans/execute documents on behalf of NRI/OCB.
    • Cannot tender Foreign Currency/Foreign Currency Travellers Cheques for credit of account.
  • Yes, by giving a Letter of Authority in the specified format to the Branch in which he is having his account. The authority to operate the account is only for local disbursements. The close relative who is authorized will not have the power to make gifts, transfer or close the account.
  • Those residents, who were non-resident earlier and are returning now for permanent stay in India, are permitted to open Resident Foreign Currency (RFC) account to keep their foreign currency assets.
  • The funds in RFC account are free from all restrictions regarding utilization of foreign currency balances including any restriction on investment outside India.
  • A person resident in India can open a Resident Foreign Currency (Domestic) Account with an authorized dealer in India out of foreign exchange acquired in the form of currency notes, Bank notes and travellers cheques from any of the sources like, payment for service rendered abroad, as honorarium, gift, services rendered or in settlement of any lawful obligation from any person not resident in India. The account may also be credited with foreign exchange earned like proceeds of export of goods or services, royalty, honorarium, gift received from close relatives and repatriated to India through normal banking channels. The account shall be maintained in the form of Current Account and shall not bear any interest. There is no ceiling on the balances in the account.

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