The accounts of erstwhile Resident Indian are designated as Non-Resident Ordinary (NRO) Accounts. NRIs can also open NRO accounts for collecting their local accruals in India. The rates of interest on domestic deposits are applicable to these accounts. Income Tax is deductible at source on the interest earned. Remittance/s upto USD 1 Mn. for any purpose per calendar year from the balances in NRO Accounts is permitted subject to payment of applicable taxes. The limit of USD 1 Mn.

Non-Resident (External) Rupee (NRE) account is a rupee account from which funds are freely repatriable. It can be opened with either funds remitted from abroad or local funds maintained in NRE/ FCNR accounts, which can be remitted abroad. The deposits can be used for all legitimate purposes. The balance in the account is freely repatriable. Interest credited to the NRE accounts is exempt from tax in the hands of the NRI.

Balances held in NRE accounts can be repatriated abroad freely, while funds in NRO accounts cannot be remitted abroad but have to be used only for local payments in rupees. Funds due to the non-resident accountholder which do not qualify, under the Exchange Control regulations, for remittance outside India are required to be credited to NRO accounts.

NRE account is a Rupee denominated account which is fully repatriable. Funds into this account will have to be received from outside India. You can open either a SB account (liquid account provided with a check book) or a Fixed deposit. The minimum period for an NRE fixed deposit is 12 months. FCNR accounts can be opened in five different currencies viz., US dollar, Pound Sterling, Euro, Jap Yen, Canadian Dollar & Australian Dollar.

Funds remitted from abroad and which are of repatriable nature can be credited to NRE accounts. Local funds which do not qualify, under the exchange control regulations, for remittance outside India can be credited to NRO accounts.

Yes. Individual credits beyond Rs.10,000 have,. however to be supported by documentary evidence to indicate that the funds represent legitimate dues of the account holder.

Yes. Debits for local payments are allowed freely, Funds representing legitimate dues of the accounts holder of proceeds of remittances received from abroad through banking channels are permitted to be credited freely.

Banks have been advised to redesignate such accounts as resident accounts on return of the account holder to India. No. Banks have been advised to continue to pay interest at the contracted rate till the maturity of the deposit if the deposit is held for the full term even after conversion into resident rupee account.

Banks in India have been authorised to allow repatriation of funds held in NRE accounts freely. Funds held in NRO accounts which would generally be from a local source cannot ordinarily be repatriated outside India. Reserve Bank would consider repatriation of such funds on the merits of each case provided it is satisfied that the funds are of a repatriable nature and have not also lost their identity.

NRO accounts can be held jointly with residents, However, NRE accounts cannot be held jointly with residents.

The loans raised against NRE deposits can be repaid out of NRO funds but in such cases, the interest would be charged at commercial rate as in force from time to time.

Funds representing legitimate dues of the account holder from local sources and proceeds of remittances received from abroad through normal banking channels are credited freely. For credits of amount equal to and beyond INR 100,000, form A4 needs to be provided

Under NRE [Non Resident (External) Rupee Account] accounts, funds can be repatriated whereas funds under NRO [Ordinary Non Resident Rupee Account] accounts are non repatriable. Yes, you need to have two separate trading accounts for investments with repatriation and non-repatriation basis. At the same time you also need to have two separate bank accounts respectively i.e. NRE and NRO account which would be linked with your trading account.

Repatriation is allowed up to US dollars 1 million per calendar year for any purpose from the balances in NRO accounts subject to payment of applicable taxes. The limit of US dollars 1 million includes sale proceeds of immovable properties held by NRIs/PIOs for a period of 10 years. In case a property is sold after being held for less than 10 years, remittance can be made if the sale proceeds have been held by the NRI/PIO for the balance period.

Yes, you can open NRE & FCNR jointly provided the other person is also an NRI. These accounts cannot be jointly held with an Indian resident. NRO accounts can be jointly held with an Indian resident.

Please visit the website of Indian operations (www.statebankofindia.com) and click on the box "Interest Rates" located at the bottom left hand corner of the home page.

RBI has advised banks to re-designate such accounts as resident accounts on return of the account holder to India. per section 6(5) of FEMA, NRI can continue to hold the securities, which he/she had purchased as a resident Indian, even after he/she has become a non-resident Indian, but has to transfer the shares to his NRO (Non Resident Ordinary) account.

The Non Resident Ordinary (NRO) Account is a savings account held in India, in Indian rupees. The NRO account can be funded through NRI income in India. Only the interest in an NRO account is repatriable. Interest income on this account is liable for Indian Income Taxes.

Funding your YES BANK Global Indian Account is easy. YES BANK has a number of corresponding banking relationships that you could use to wire the funds to your account. Use these details depending on the currency you are remitting in: The Average Quarterly Balance for your NRE Savings Account is INR 10,000, which is roughly equivalent to US$ 220