Features of various deposit schemes available to Non-Resident Indians (NRIs)

 

Types of Deposit Schemes

Particulars

FCNR a/c
(Foreign Currency
Non-Resident a/c.)

NRE a/c
(Non-Resident
External Rupee a/c.)

NRO a/c
(Non-Resident
Ordinary a/c.)

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2

3

4

     

  • Who can open an account

NRIs or OCBs.

NRIs or OCBs

Any person resident outside India

 

  • Joint account of
    two or more NRIs


Permitted


Permitted


Permitted

 

  • Joint account with another person resident in India


Not permitted


Not permitted


Permitted

 

  • Currency in which account denominated


Pound Sterling,
US Dollar, DM ,
Jap. Yen, or Euro.


Indian Rupees


Indian Rupees

 

  • Repatriability :

Principal

Interest



Freely repatriable



Freely repatriable



Not repatriable


Freely repatriable


Freely repatriable


Freely repatriable

  • Foreign Currency Risk

Account holder is protected against changes in INR value vis--vis the currency in which the account is denominated.


Account holder is exposed to the fluctuations in the value of INR .


Account holder is exposed to the fluctuations, in the value of INR to the extent of interest amount.

 

 

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2

3

4

  • Type of accounts

Term deposits only

  • Current
    Savings
    Recurring
    Fixed Deposits
  • Current
    Savings
    Recurring
    Fixed Deposits

     

  • Period for fixed deposits


For terms not less than 1 year and not exceeding 3 years


For the periods as announced by the deposit taking bank.


For the periods as announced by the deposit taking bank

  • Rate of Interest

Banks are free to determine interest rates within the ceiling, if any, prescribed by the Reserve Bank


Banks are free to determine interest rates.


Banks are free to determine interest rates.

  • Rupee Loans in India against Security of the funds held in the account to :

1) a/c holders

permitted

permitted

permitted

2) third party

permitted

permitted

permitted

  • Foreign currency loans outside India against Security of the funds held in the account to :

1) a/c holders

permitted

permitted

Not permitted

2) third party

permitted

permitted

Not permitted

 

Notes:

  1. Nomination facilities, for nominating either a resident or a non-resident are available, in all types of accounts maintained in the name of individuals only.
  2. For details of tax benefits available against each account please refer to the current Income Tax rules.
  3. For the purposes of maintaining an account in India

(A) NRI is a person resident outside India who ;

    1. is citizen of India, or
    2. is a citizen of any country other than Bangladesh or Pakistan if

       

    1. he at any time held Indian passport, or
    2. he or either his parents or any of his grand parents were a citizen of India by virtue of the constitution of India or the
      Citizenship Act , 1955 (57 of 1955), or
    3. a person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) above."

(B) OCB is defined as:

"a company, partnership, firm, society or any other corporate body owned directly or indirectly to the extent of at least 60% by non-resident Indians and includes overseas Trust in which not less than 60% beneficial interest is held by non-resident Indians directly or indirectly but irrevocably."

 

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