|
Types of Deposit Schemes |
|
Particulars |
FCNR a/c
[Foreign Currency
(Non-Resident) a/c] |
NRE a/c
[Non-Resident
(External) Rupee a/c] |
NRO
(Non-Resident
Ordinary Rupee a/c) |
|
1. |
2. |
3. |
4. |
|
Who can open an account |
NRIs and OCBs |
NRIs and 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, Jap. Yen, or Euro |
Indian Rupees |
Indian Rupees
|
|
Repatriability:
Principal
Interest |
Freely repatriable
Freely repatriable |
Freely repatriable
Freely repatriable |
Not repatriable
Freely repatriable
|
|
Foreign Currency Risk |
Account holder is protected against changes in INR value vis-à-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
|
|
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. |
|
Rupees Loans in India against Security of the funds held in the account to: |
|
1. |
2. |
3. |
4. |
|
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 |
Foot Note:-
- Proceeds of NRNR deposits maturing on or after 1-4-2002 may be credited to NRE A/c/NRO A/c at the option of the account holder.
- No new NRNR account to be opened after March 31, 2002.
- NRNR account may be closed or proceeds transferred to NRO account, as desired by the account holder, on September 30, 2002.
- The account holder may choose to credit the maturity proceeds to the NRE saving bank account or current account or open a fresh NRE term deposit account.
- No new NRSR account to be opened after March 31, 2002. The existing NRSR term deposit accounts may be continued till maturity and the maturity proceeds may be credited to NRO A/c of the Account holder.
- The existing NRSR account other than term deposit not to continue after September 30, 2002. On the closure of the account the balance to be credited to/transferred to NRO A/c of the account holder.
- The existing NRSR account other than term deposit not to continue after September 30, 2002. At the option of the account holder it may be closed or balance thereof may be credited to his NRO account on or before that date.
Notes:
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.
- For details of tax benefits available against each account please refer to the current income Tax rules.
- For the purposes of maintaining an account in India
- NRI is a person resident outside India who:
- is citizen of India, or
- is a citizen of any country other than Bangladesh or Pakistan if
- he at any time held Indian passport, or
- he or either his parents or any of his grand parents were citizen of India by virtue of the constitution of India or the Citizenship Act, 1955 (57 of 1955), or
- a person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) above
- 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 Indian 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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