Facts and Benefits of NRI Banking

1
Facts and
Benefits of NRI Banking
2
What is NRI Banking?

• In order to provide a safe haven for the incomes
  earned by Indians, who work in foreign countries,
  Government of India in association with RBI
  launched NRI Banking services in 1970.
• This is a special banking service offered only to
  those Indian citizens, who work or hold business
  outside the country, and are looking forward for
  a banking channel for savings and remittances.
• Based on the underlying currency and mode of use,
  NRI Banking permits 3 types of accounts, which
  are available with private as well as public
  sector banks. All of them are governed by
  Exchange Control Regulations.
• Types of NRI Bank Accounts
• NRE Non Resident External Account
• NRO Non Resident Ordinary Account
• FCNR Foreign Currency Non Resident Account

3
NRE Account

• It is a savings account, which is ideal for
  Indians residing abroad.
• Best channel to transfer foreign earnings easily
  within the country
• NRE account can be opened by any NRI as Savings
  and Fixed Deposit Accounts
• The currency to be maintained is Indian Rupee and
  the interest earned on savings is not taxable
• Nomination is allowed and an NRI join account
  holder is permitted
• Best for paying bills and other expenses within
  the country

4
NRO Account

• Available as Savings, Current or Fixed deposits.
• Best channel for saving money earned through
  income sources within the country, like rent,
  dividend, or pension
• Funds cannot be repatriated however, the
  interest earned can be withdrawn
• Interest earned is taxable
• Currency to be maintained is Indian Rupee and a
  local person is permitted to be the joint holder
• Only Indian Rupee is allowed to be deposited and
  maintained in this account

5
FCNR Account

• This is foreign currency fixed deposit account
  for NRIs
• Currencies allowed include US Dollars, Pounds,
  Japanese Yen, Euro
• Indian currency cannot be deposited
• Only an NRI can become a joint holder
• Both deposit and the interest earned on them are
  tax-free

6
Thank You