Various types of accounts that can be opened by NRI or a Person of Indian Origin (without permission from Reserve bank of India)

 Various types of accounts that can be opened by NRI or a Person of

Indian Origin (without permission from Reserve bank of India) are as under.

Deposits

A. Non-Resident (External) Rupee Account- NRE Account

B. Non-Resident (Ordinary) Rupee Account-NRO Account

C. Foreign Currency Non-Resident (Bank) Account-FCNR(B) Account

Following Two schemes are discontinued with effect from 1st

April 2002

D. Non-Resident (Non-Repatriable) Rupee Deposit Scheme

E. Non-Resident (Special) Rupe Account Scheme.

Non-Resident (External) Rupee Account- NRE Account

Non-Resident Indians (NRIs) and Overseas Corporate Bodies (*OBC’s) are permitted

to open and maintain these accounts. The accounts should be opened by the nonresident

account holder himself and not by the holder of the power of attorney in India.

Types of accounts:

The accounts may be maintained in any form, e.g. savings, current, recurring or fixed

deposit account etc.

Joint Accounts can be opened in the names of two or more non-resident individuals.

Nomination facility is permitted. Accounts will be opened in Indian Rupees. Balance in

these accounts and interest accrued is repatriable. Account holder is exposed to the

fluctuations in the value of Indian Rupee.

Joint Account with another Resident Indian is not permitted.

Permitted Credits:

a) Proceeds of remittances to India in any permitted currency.

b) Proceeds of personal cheques drawn by the account holder on his foreign currency

account and of travellers cheques, bank drafts payable in any permitted currency

including instruments expressed in Indian rupees for which reimbursement will be

received in foreign currency, deposited by the account holder in person during his

temporary visit to India, provided the authorised dealer/bank is satisfied that the

account holder is still resident outside India, the travellers' cheques/drafts are

standing/endorsed in the name of the account holder and in the case of travellers'

cheques, they were issued outside India.

c) Proceeds of foreign currency/bank notes tendered by account holder during his

temporary visit to India, provided (i) the amount was declared on a Currency

Declaration Form (CDF), ( proforma of CDF is given on the last pase of this

circular) where applicable, and (ii) the notes are tendered to the authorised dealer

in person by the account holder himself and the authorised dealer is satisfied that

account holder is a person resident outside India.

d) Transfers from other NRE/FCNR accounts.

e) Interest accruing on the funds held in the account.

f) 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.

*Overseas Corporate Bodies (OBCs) are bodies predominantly owned by individual s of Indian nationality or origin

resident outside India and include overseas companies, partnership firms, societies and other corporate bodies

which are owned , directly or indirectly, to the extent of 60% by individuals of Indian nationality or origin resident

outside Indians also overseas trusts in which at least 60% of the beneficial interest should be actually held by them

and not in the capacity as nominees.

g)Maturity proceeds of Government securities including National Plan/Savings

Certificates as well as proceeds of Government securities and units of mutual

funds sold on a recognised stock exchange in India and sale proceeds of units

received from mutual funds, provided the securities/units were originally purchased

by debit to the account holders's NRE/FCNR account or out of remittances

received from outside India in free foreign exchange.

h) 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.

i) Refund of application/earnest money made by the house building agencies on

account of non-allotment of flat/plot, 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 and the authorised dealer is satisfied about the genuineness of

the transaction.

j) Any other credit if covered under general or special permission granted by Reserve

Bank.

Permitted Debits:

a) Local disbursements .

b) Remittances outside India.

c) Transfer to NRE/FCNR accounts of the account holder or any other person eligible

to maintain such account.

d) Investment in shares/securities /commercial paper of an Indian company or for

purchase of immovable property in India provided such investment/purchase is

covered by the regulations made, or the general/special permission granted, by theReserve Bank.

e) Any other transaction if covered under general or special permission granted by the Reserve Bank.