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.Apply
- 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.
- Internet Banking Services
- 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