NRE Account

Features

• 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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