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NRE Account

The Non-Residential External (NRE) account is ideal for Non-Resident Indians who would like to open a savings, current or a term deposit account for operation in Indian rupees. As the NRE account is exempt from tax, it is best suited to people who have plans to repatriate their funds abroad.
   
  • Account maintained only in Indian rupees.
  • Any balance in the savings and current accounts and the principal and interest receive for term deposits can be repatriated abroad.
  • The proceeds of foreign currency travellers’ cheque, drafts, cheques or foreign currency notes can be freely credited to the NRE Savings Account.
  • Credits to and withdrawals from the NRE savings account can be done frequently and conveniently.
  • NRE account holders will receive a cheque book for their savings account.
  • NRE account holders can have a nominee who is a resident of India.
  • Balances held in the accounts are exempt from income tax, wealth tax and gift tax.
  • Loans can be raised against term deposits up to a maximum amount of Rs. 1 crore.
  • Any amount can be credited to this account, without limit.
  • Foreign currency remittances can be converted into Indian rupees at 100% market rates.
  • NRIs can appoint residents to operate their NRE accounts for local payments through a Power of Attorney, Mandate or Letter of authority.
  • Interest rate on NRE savings deposits is at par with domestic saving deposits.
  • For Term deposits the rate of interest has to be within the upper limit, as specified by RBI.
  • An NRE account will be converted to a resident account when the holder returns to India permanently.
  • Term deposit accounts will continue to earn the contracted rate of interest till they mature.
  • According to the latest instructions of Reserve Bank of India the repatriation of funds by a Power of Attorney to the NRI account holder, is also possible in case specific powers are available.
  • Interest/dividend/maturity proceeds of investment made in India on repatriation basis could be credited to this account.
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  • This account is eligible to all Non Resident Indians (NRI) and Persons of Indian Origin (PIO). The NRI or PIO has the option to open a savings account, current account, term deposit or cumulative term deposit in Indian rupees.

Note: The foreign citizen should not belong to Pakistan or Bangladesh

  • All the requisites for complying KYC norms
  • Attested copies of Passport and stamped work permit /visa
  • Two photos
  • Original documents to be verified while opening an account

NRO Account

A non-resident ordinary (NRO) account can be a savings, current, term deposit or a cumulative deposit account. As an NRI, your local income or funds generated in India can be credited to this account, which can be held jointly with resident Indians as well.
   
  • An NRO account can be a savings account, a current account, a term deposit or a cumulative deposit.
  • The NRO account is maintained only in Indian rupees.
  • Remittance of funds from abroad is permitted through normal banking channels.
  • Transfer of funds from an existing Non-Resident Account.
  • Any balances in the account can be repatriated to India, up to a maximum of USD $1 million per calendar year, for any purpose, subject to the payment of taxes.
  • Sale proceeds of immovable properties can be credited to NRO accounts.
  • The lock-in period for the sale proceeds of the immovable property, credited to the NRO account to be eliminated, provided the amount being remitted in any financial year does not exceed US $1 million.
  • Interest on these deposits is subject to Income tax.
  • Local funds generated in Indian rupees can be credited to these accounts.
  • Interest earned on NRO accounts can be fully repatriated.
  • Provision for a nominee for this account.
  • NRO account can be held by an NRI jointly with a resident Indian
  • Current incomes of NRIs including rent, dividend, interest, pension etc., excluding taxes applicable, can also be credited to this account
  • The NRO account can be opened by a Non-resident Indian (NRI) or a Person of Indian Origin (PIO). However if an Indian, Nepalese or Bhutanese has offices and/or branches situated in Nepal or Bhutan for any business or partnership firm established in one of these three countries he/she is not permitted to hold an NRO account.
  • In addition to this, Pakistani, Bangladeshi or Chinese nationals (individuals or entities) require prior approval of the Reserve Bank of India to open an NRO account
  • All the requisites for complying KYC norms
  • Attested copies of Passport and stamped work permit /visa
  • Two photos
  • Original documents to be verified while opening an account
   

Recurring and Term Deposit

Dhanlaxmi Bank's recurring and term deposits provide NRIs with the twin benefits of healthy returns and monthly remittances into a recurring account. You can choose to remit fixed monthly.
instalments into a Laxmi Recurring Deposit at various maturity periods. On maturity, the principal and interest is transferred to a fixed deposit, which earns interest according to rates prevailing at the time of transfer. Interest from the fixed deposit can be paid out monthly at a discounted rate.
   
  • NRIs can add fixed instalments directly into the Laxmi Recurring Deposit scheme or open a savings bank account and issue a standing instruction to add deposits to the scheme
  • Minimum deposit of Rs. 1,000 and subsequent deposits in multiples of Rs. 500, without any maximum limit
  • Tenure of the NRE Recurring Deposit scheme can be 12, 24, 36, 48, 60, 84 or 120 months
  • On maturity of the deposit scheme, the compounded amount will be converted into a fixed deposit for a period of 60 months
  • Interest on fixed deposit will be at the prevailing interest rate for NRE term deposits in accordance with RBI directives, subject to compliance with tax laws, if any
  • Interest on the fixed deposit is paid on a monthly basis at discounted value. This monthly payout continues till the fixed deposit is closed
  • In case of a joint account with a survivorship mandate, in the event of the death of one depositor, interest payments will continue to the joint depositor. In the event of the demise of both depositors, the balance amount in the account will be paid to the nominee or the legal heirs, on production of sufficient supporting documents as required by the bank.
  • The plan can be discontinued after the maturity of Recurring Deposit without any penalty.
  • The interest payable, in this case, will be the rate applicable for the period for which the deposit has run during the current renewal cycle.
  • In case of premature close of the account, the following penalty shall apply:

    Premature Closure

    Penalty

    Within 12 months of opening the account

    No interest will be paid to the customer as the minimum period for which NRE term deposit can be accepted is 1 year.

    After 12 months of opening the account

    The interest payable will be at the rate applicable for the period for which the deposit has run, less the applicable penalty of 1%.

  • If the depositor wishes to discontinue the scheme, the principal amount will be paid after deducting necessary charges
  • Loan can be granted against the deposit after considering the balance in the Laxmi Recurring Deposit at the time the loan against the Recurring and Term Deposit is applied for
  • 90% of the account balance can be given as loan at an interest rate 1% higher the rate on the deposit, or higher, subject ot market conditions
  • In case the loan is raised after transferring the Laxmi Recurring Deposit proceeds to the fixed deposit, interest payments would be suspended for the duration of the loan and would instead be credited to the loan account
  • The deposit is subject to compliance with tax laws. Presently, there is no income tax, gift tax or wealth tax for NRE or FCNR Deposits
  • For Laxmi Recurring Deposits, tax deductions at source (TDS) is not applicable to recurring deposits even in the domestic segment
  • The Recurring and Term Deposit can be opened and maintained by any Non Resident Indian (NRI / PIO).
  • All the requisites for complying KYC norms
  • Attested copies of Passport and stamped work permit /visa
  • Two photos
  • Original documents to be verified while opening an account

Foreign Currency Non-Resident Fixed Deposit

The Foreign Currency Non-Resident (FCNR) deposit account scores over the NRO and NRE accounts since it can be opened in five different currencies. However, these accounts
cannot be savings or current accounts, and must be in the form of term deposits. As they enjoy the same tax exemptions as NRE accounts, deposits into FCNR accounts can be fully repatriated to the country of residence.
   
  • A  FCNR can be opened in five major currencies including US dollars, Pound Sterling, Euros, Australian dollars and Canadian dollars.
  • Deposits can be made by remittances from abroad, by funds held in existing NRE accounts or by depositing foreign exchange brought to India.
  • These accounts can be held only in the form of term deposits for 1 year to 5 years.
  • On maturity, proceeds can be paid in foreign currency or Indian rupee as desired by the depositor.
  • This account is secure because it protects the deposit holder from fluctuations in exchange rates.
  • A FCNR account can be converted to an NRE account and vice versa.
  • The interest on this account is compounded half yearly. and is higher than international interest rates.
  • The principal and interest on this account can be fully repatriated at any time.
  • The deposit holder can appoint a resident Indian as a nominee, and does not have to pay any tax on this deposit.
  • An NRI with a FCNR account can avail of a loan in India.
  • All NRIs

  • All the requisites for complying KYC norms
  • Attested copies of Passport and stamped work permit /visa
  • Two photos
  • Original documents to be verified while opening an account

     

Accounts for Returning NRIs (Resident Foreign Currency Account)

As an NRI relocating back to India, Dhanlaxmi Bank offers you structured deposit schemes that help minimise your income tax liabilities and ensure proper allocation of funds, assets and deposits.

You can continue to hold, own, transfer or invest in foreign currency, foreign securities or any immovable property situated outside India, so long as these investments were made while you were located abroad. You can even maintain and operate your foreign currency accounts with banks abroad with Dhanlaxmi Bank's assistance.

By opening a Resident Foreign Currency account (RFC) in India, you can transfer balances held in Non-Residential External account (NRE) or Foreign Currency Non-Resident Deposit (FCNR) on returning to India. Proceeds of assets held outside India at the time of return can be credited to the RFC account. Funds in the RFC account have no restrictions regarding utilization of foreign currency balances, including restrictions on investments outside India.

   
  • NRIs returning to India can retain their foreign earnings in convertible foreign exchange.
  • All NRE or FCNR funds, foreign exchange remittances, travellers’ cheques, foreign currency notes etc. can be credited to the RFC account.
  • An RFC account can be either a savings or current account or a term deposit of a tenure between six months and three years. It can be held jointly with other eligible residents.
  • Funds in an RFC account can be sent abroad for any authentic purpose without RBI approval. Withdrawals in Indian rupees are allowed for local payments.
  • If the account holder gains NRI status once again, the account can be designated as a NRE account or a Foreign Currency Term Deposit.
  • NRIs who have been residing abroad for at least a period of one year.
  • All the requisites for complying KYC norms
  • Attested copies of Passport and stamped work permit /visa
  • Two photos
  • Original documents needed for verification when opening account
 
 

FAQ on NRI Deposits

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