These accounts can be opened from the money you earn outside India. You maintain these accounts in Indian Rupees and are permitted to send the money outside India at any time and without any restrictions on the same.
You may open NRE Savings accounts, NRE Current accounts and NRE Term deposits ranging from 1 to 3 years.
This account can be held jointly with another NRI. You may give a Resident Indian the Power of Attorney to do select operations on the account. The funds in the account are freely repatriable, i.e. there is no restriction on sending the money back out of the country. The interest earned on NRE bank deposits is not taxable.
These are Term Deposits that you may hold with the bank in the major currencies, i.e. US Dollars, Pound Sterling, Euro, or Japanese Yen. The deposits range from over 1 year to 3 years for USD and GBP and upto 2 years for EURO & Japanese Yen.
The funds with which this account can be opened is external funds, and hence, it is very much like the NRE account in terms of repatriability, joint operations and Power of Attorney.
Non-Resident Ordinary (NRO) Accounts
These accounts are ideal for your local money earned in India. If you earn rent, dividends, or want to credit proceeds of property sold, inheritance, etc., you will need to have this account.
You may also credit funds from abroad into this account. This account can be held jointly with your resident relatives for convenience. You may open Savings accounts, Current accounts and Term deposits.
Although the funds in this account may be local, there are certain repatriation benefits allowed even on NRO accounts.
The documents required to be produced for effecting remittances are:
Account holder's Letter instructing the remittance
Copy of document/s proving the value of proceeds credited to the NRO account is current income
Chartered accountant's certificate in the format prescribed by IT authorities
Cheque or debit authority if the same is not contained in the letter in item (i)
Application in Form A2.
Smart International Accounts (SIA)
This is a facility where the bank gives you an overdraft against the security of the term deposits held by you. We simply offer you an overdraft of 90% of any of the above Non-Resident Deposits or your NRO savings account for you to be able to overdraw to meet your local needs. You have the flexibility to repay using both local as well as external funds. The overdraft is only available for local use.
What documents are required to prove Non-Resident status / Indian Origin?
In order to start an NRI relationship with the bank, you will need to produce the following documents that will evidence proof of your Non-Resident status
Passport with a valid Visa
Date of exit from India, and date of last entry into India (to establish you have been out for at least 6 months) stamped on passport
Completed NRE / NRO account opening form.
Photograph (signed across the face of it)
Letter from Employer / Contract (proof of overseas employment)
Letter of rejoining employer / Next Contract (proof of continuation of NRI status)
You may also want to avail of our NRI services if you are a Person of Indian Origin (PIO). You are a PIO if you, any of your parents, or any of your grandparents at any time were a permanent citizen of undivided India. If you are of Non-Indian origin or parentage, and are married to a PIO, an NRI, or an Indian citizen, you are still deemed to be a PIO, and can avail of all facilities available to NRIs.
In order to prove PIO status, you will have to furnish appropriate proof.
The following can be accepted as "Proof of Indian Origin"
Indian Passport
Foreign Passport with place of birth in India.- School / College / University leaving certificate or Marksheet
The above may have to be supported by any one of the following:
Certification from the Indian Embassy that the applicant is of Indian origin
Ration Card, Voter ID or PAN Card
In the case of spouse the Marriage Certificate with supporting evidence of the maiden name
Foreign Passport with place of birth outside India or not showing a place of birth
This will have to be supported by any one of the following:
Birth Certificate of parents / grandparents substantiating evidence of the relationship
School / College / University leaving certificate or mark sheets of the account holder / Parents or Grandparents with supporting evidence of the relationship
Passport of either Parents or Grandparents, which indicate that they were Indian citizens with supporting evidence of the relationship
Certification from the Indian Embassy that the applicant or either of his parents or grandparents are of Indian origin with supporting evidence of the relationship
Ration Card, Voter ID or PAN card of either self or parents / grandparents with supporting evidence of the relationship
Old Indian Passport
PIO Card
Marriage certificate with supporting evidence of the maiden Indian name substantiated by any of the above documents.
The NRI Representative/ Officer accepting the application form from the customer must provide a certification that states "NRI Status Verified" together with the relevant copies of any of the above documents to prove PIO.
What happens when an NRI / PIO returns to India?
You are allowed to continue to hold any assets in foreign currency (foreign securities and properties situated outside India), if you acquired the same while you were an NRI or a PIO. You will have balances lying in your NRI accounts here in India. The balances held in the NRO account will have to be converted to resident status.
The balances lying in the NRE / FCNR accounts may be held in Foreign Currency in a Resident Foreign Currency (RFC) Account. This is a Term Deposit, the tenure of which ranges from 1 month to 6 months. Further proceeds of assets held outside India at the time of return as well as salary/pension or other dues received subsequently can also be credited to these deposits.
These funds are free from all restrictions on usage
What provisions exist for NRIs to lend and borrow?
Non resident Indians have been permitted to borrow in India for the following purposes
Against bank deposits for local/personal needs.
Against shares and other forms of financial securities for local needs
These borrowings will have to be repaid out of inward remittances or balances in NRO/NRE/FCNR accounts.
Non Resident Indians are not allowed to borrow in India and remit proceeds overseas. If the borrowed funds are to be used overseas, the Non Resident customer can arrange to borrow overseas using his repatriable bank deposits - NRE or FCNR as security.
Non Resident Indians can lend to residents as long as the loan is not used for dealing in real estate. Repayment of such loans is not repatriable and is required to be credited into the NRO account.
