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Accounts & Deposits

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  • Non-Resident Indians are permitted to open the account.
  • Can be held as Savings/Current/Term/Recurring deposits.
  • Can be opened by remittances from abroad/foreign currency tendered by account holder/foreign cheques deposited/transfer from existing NRE/FCNR accounts.
  • Interests on NRE Savings bank account are as applicable as for domestic savings bank account.
  • Interest on Term Deposit are as applicable for domestic deposit accounts (for ongoing rates please visit our website) 
  • Term Deposit can be opened for a minimum period of 1 year and maximum period of 10 years.
  • No interest will be paid, if closed before completion of minimum period of one year.
  • Balance held in the account is freely repatriable.
  • Joint account with other NRIs is permitted.
  • Joint account with resident close relative (as defined in Section 6 of Companies Act, 1956) on former or survivor basis is permitted.
  • Resident close relative shall be eligible to operate the account as Power of Attorney holder.
  • Interest on NRE account is exempt from tax.
  • Can be operated by mandate or Power of Attorney holder to facilitate local payments only.
  • Mandate or Power of Attorney holder can repatriate back the funds  only to an NRI account holder. 
  • Loan/nomination facility is available.
  • Forward Exchange cover facility is available to guard against exchange risk.
  • Can be opened by non-resident individuals/entities.
  • Can be held as Savings/Current/Term/Recurring deposits.
  • Can be opened with foreign currency or alternatively existing rupee account, if any, can be converted as NRO account.
  • Can be jointly held with resident Indians.
  • Can be utilized for local payments and for other investments on non-repatriation basis subject to compliance of Reserve Bank regulations.
  • Can be opened with any of our branches.
  • Interest rates on savings bank account are as applicable as for domestic savings bank account and for term deposit as applicable for domestic deposit account. 
  • Funds held in these accounts cannot be repatriated. However, funds representing current income like rent, dividend, pension interest etc, are repatriable based on certification by a Chartered Accountant that the amount proposed to be remitted is eligible for repatriation and that applicable taxes have been paid.
  • Interest earned on the deposit is subject to tax as applicable.
  • Loan/nomination facilities available.
  • Non-Resident Indians are eligible to open the account.
  • Can be held in the form of term deposits only.
  • Can be maintained in any freely convertible currency (Subject to terms and condition of the Bank and as per guidelines issued by RBI/FEDAI). Presently, we are offering FCNR in USD, GBP, EURO, JPY, CAD, AUD, CHF, SEK, HKD and SGD.
  • Can be opened by remittance from abroad or transfer from NRE account.
  • Joint account only with other NRIs and resident close relative (as defined in Section 6 of Companies Act,1956) on former or survivor basis is permitted.
  • Can be opened for a minimum period of 1 year and maximum period of 5 years.
  • No interest will be paid, if closed before completion of minimum period of one year.
  • Both principal and interest are freely repatriable.
  • No tax liability either on the principal or on interest earned.
  • Loan/nomination facility available.
  • Forward Exchange Cover facility is available to guard against exchange risk.
  • Account can be opened by NRIs on return to India for permanent settlement.
  • Can be held as Current and Savings (without cheque book facility) and term deposit.
  • Can be opened by transfer from NRE/FCNR account or by remitting foreign currency notes or travelers cheques.
  • Proceeds of assets held outside India at the time of return, can be credited to the account.
  • Pension, rentals and other monetary benefits received from abroad in favour of the account holder can be credited.
  • Funds in RFC account are free from all restrictions regarding utilization of foreign currency balances, including any restriction on investment in any form outside India.

Accounts and Deposits:

Karnataka Bank has an exclusive range of savings and deposit products, specially customized and tailored to your needs to make banking a pleasure for Non-Resident Indian (NRI) customers. Select from our range of products and enjoy the benefits of digital banking like internet banking, E-mail statements etc. The different types of accounts and deposits are listed below:
NRE NRO FCNR (B) RFC
Funds remitted from overseas to India Funds remitted from overseas to India or funds from Indian sources Funds, in foreign currency, remitted from overseas to India Funds for returning Indians (for permanent settlement)
Rupees Rupees USD, GBP, EURO, CAD, JPY, AUD, CHF, SEK, HKD, SGD USD, GBP, EURO, CAD, JPY, AUD, CHF, SEK, HKD, SGD
Savings, Current, Fixed Deposits and RD Savings, Current, Fixed Deposits and RD Fixed Deposits Savings and Fixed Deposits
Min: 1 Year Max: 10 Years Min: 7 Days Max: 10 Years Min: 1 Year Max: 5 Years Min: 1 Month Max: 1 Year
  • NRIs
  • Resident Indians on Former or Survivor basis
  • NRIs
  • Resident Indians on Former or Survivor basis
  • NRIs
  • Resident Indians on Former or Survivor basis
Only with any person who is eligible to open an RFC
Freely Repatriable Principal: Repartiable up to USD 1 million Interest: Freely repatriable subject to decduction of tax Freely Repatriable Freely Repatriable
Interest income tax free in India Interest income is taxed as per India Income Tax Rules. Reduced tax under Double Tax Avoidance Agreement Interest income tax free in India Interest income tax free in India till account holders status changes

Interest Rates:

 

FATCA/CRS & DTAA Benefits:

FATCA:

India has joined the Multilateral Competent Authority Agreement (MCAA) on automatic exchange of financial information. All countries which are signatories to the MCAA are obliged to exchange a wide range of financial information after collecting the same from financial institutions in their jurisdiction. The FATCA agreement enhances tax transparency and accountability in matters of financial reporting and payment of taxes which are legitimately due to various governments. The basic purpose of FATCA is to prevent US persons from using banks and other financial institutions outside the USA to park their wealth outside US to avoid US taxation on income generated from such wealth. Alike FATCA, Indian Government has further committed to implement a Common Reporting Standard (CRS) as part of reciprocal exchange of information on financial accounts on an automatic basis with other countries.

DTAA:

DTAA stands for Double Taxation Avoidance Agreement. It is an agreement between two countries with an objective to avoid taxation of the same income in both countries. India has comprehensive Double Taxation Avoidance Agreements (DTAA) with 86 countries as of now. For instance, an NRI residing in “A” country is maintaining NRO Account with a bank in India. The interest earned on balances in this account is considered as the NRIs income originating in India and accordingly taxed in country “A” resulting in double taxation of the same income in both countries. If India has DTAA with country “A”, this income will be taxed at the rate prescribed in the agreement. Else, it will be taxed at 30.9 % (withholding tax).

 

How to avail Benefit?

As per the provisions of the Income Tax Act, 1961 it is mandatory to submit Tax Residency Certificate (TRC) for claiming the benefits under Double Taxation Avoidance Agreement (DTAA). NRIs who wish to avail DTAA benefit have to mandatorily provide 'Tax Residency Certificate (TRC)' to the Bank. NRIs can avail benefits under the DTAA by timely submission TRC along with Form-10F & PAN No. The certificate containing above details should be duly verified by the Government of the country or the specified territory of which the NRI claims to be a resident for the purposes of tax.

 

How to obtain the TRC?

You can download FORM-10F available at website and approach the tax/government authorities of the overseas where you reside to get the form (TRC) certified. DTAA benefit is extended on an annual basis. Therefore, NRIs are required to provide all the requisite documents at the beginning of every Financial year to continue availing the benefit under DTAA. In case the prescribed documents are not submitted to the bank within stipulated timelines, the bank will have to deduct interest earned on NRO deposits at the presently applicable rate of 30.9 % (withholding tax).

 

Update KYC:

As per RBI guidelines KYC has to be reviewed periodically based on the risk category of customer to mitigate the frauds and Anti-Money Laundering activities in the accounts. And also it will help us to post you abreast of latest schemes and products offered by us. Hence Customers are requested to contact your base branch to keep up-to-date with latest KYC as under.
  • Identity Proof
  • Valid Passport and Visa Copy
  • E-mail & Phone Number
  • Other KYC Norms.