|Eligibility||1. Accounts can be opened by remittances from abroad,deposit of foreign exchange brought into India , transfer from existing self NRE/FCNR accounts.|
2. Accounts can be opened jointly with any other Non-Resident Indian / Residents who are close relatives (as defined in Section 6 of the Companies Act 1956) of the NRI.
3. Joint account with resident close relatives is permitted only under Former (NRI) or Survivor (resident) basis.
4 Non-Resident Indians can appoint residents to operate their NRE accounts for local payments through a power of attorney.
|Benefits||1. Withdrawals for local payments or payments abroad in any convertible currency are allowed as per the extant RBI guidelines. |
2. Standing instructions can be undertaken for periodic payments of insurance premia, school fees, etc.
3. Funds from these accounts are freely repatriable.
4. Nomination facility is available. - Nominee can either be a resident in India or a resident outside India .
|Tax Benefit||1. Interest on the deposit is free of Indian Income Tax. |
2. Use of NRE accounts is obligatory for channelising funds for all repatriable investments in India (including investments in shares and securities).
|Salient Features||1. Deposit scheme where balance are maintained in Indian Rupees.|