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  home > Info > Frequently Asked Questions

1. Who is a Non-Resident Indian (NRI)?

A NRI is a Person Resident Outside India who is a citizen of India or a Person of Indian origin.  

A Person resident outside India is a person who has gone out of India or who stays outside India, in either case 

  1. for or on taking up employment outside India, or
  2. for carrying on outside India a business or vocation, or 
  3. for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period

A Person of Indian origin (PIO) is any person (not being a citizen of Bangladesh or Pakistan)

  1. who, at any time, held Indian Passport or
  2. who or either of whose parents or any of the grand parents was a citizen of India under Constitution of India or under Indian Citizenship Act, 1955 (57 of 1955)
  3. Whose spouse is a citizen of India or a person of Indian origin.

2. What are the various facilities available to NRIs?

  • Maintenance of bank accounts 

  • Investment in shares/securities 

  • Deposits in Indian firms/companies

  • Investment in immovable properties

  • Import of gold and silver to India

  • Exemption from tax liability

  • Loan facilities against deposits : Loan is available against the deposit as per extant RBI guidelines from time to time. Currently loans are available to the extent of Balance available subject to margin requirements . The facility of premature withdrawal shall not be available where loan against such deposits are to be availed of.

  • Loan facility for house construction/purchase

  • Nomination facility

  • Repatriation facility (withdrawal of deposit in foreign currency)

3. Can accounts be maintained by NRIs with any bank in India?

No. Banks holding authorised dealers' licences or banks specifically authorised in this behalf by Reserve bank can only maintain accounts in the names of NRIs.

4. Are NRIs permitted to maintain accounts in rupees and in foreign currency?

Yes.

5. What are the types of Rupee accounts permitted to be maintained?

Two type of accounts viz., 

  1. Ordinary Non Resident Rupee Accounts (NRO Accounts)
  2. Non-Resident (External) Rupee Accounts (NRE Accounts)

6. Can proceeds of foreign currency notes/travellers cheques brought by NRIs during their visit to India be credited to their NRE accounts without any restriction?

Yes.

7. What is the distinction between NRE and NRO accounts?

Funds remitted from abroad or local funds which can otherwise be remitted abroad to the account holder, can be credited to NRE Accounts. Local funds which do not qualify for remittance outside India are required to be credited to NRO accounts.

8. Can NRO/NRE accounts be maintained by NRIs jointly with residents?

* NRO accounts can be maintained jointly with residents.
* NRE accounts can be maintained jointly on Former or Survivor basis

9. Can funds in NRE/NRO accounts be repatriated outside India?

NRE accounts - Yes

NRO accounts - (1) Current income like rent,dividend,pension,interest etc.

                      (2) Remittance upto USD 1 milion per financial year(apr-march) for all bonofide purpose to the                                                satisfaction of authorized deals banks.

10. Can funds in NRE/NRO accounts be utilised for payment of air fare to/from/in India of the account holder and/or his dependents?

Yes

11. Are NRO/NRE account holders eligible for loans/overdrafts against their fixed deposits?

Yes. , Loan/Overdraft  is available against the deposit as per extant RBI guidelines from time to time. Currently loans are available to the extent of Balance available subject to margin requirements . The facility of premature withdrawal shall not be available where loan against such deposits are to be availed of.

12. Is nomination allowed in NRO/NRE accounts?

Yes.

13. Can accounts be maintained by NRIs in a foreign currency?

Yes.

14. What are the foreign currencies in which such accounts can be maintained?

  • Deposits can be opened for periods ranging from 1 year to 5 years in any of the 9 designated currencies viz: US Dollar, Pound Sterling, EURO, Australian Dollar, Canadian Dollar, Japanese Yen , Swiss Franc, Danish Krone and Swedish Krone

15. Are funds in FCNR accounts freely repatriable abroad?

Yes.

16. Can NRIs invest their funds in government securities or units of Unit Trust of India?

Yes.

17. Can NRIs make investments in National Savings Certificates issued by post offices in India?

Yes.

18. Are sale/maturity proceeds of Government Securities/Units/National Savings Certificates allowed to be repatriated abroad?

If such securities are purchased out of funds remitted from abroad.

19. Is permission of Reserve bank required for NRIs to invest in proprietary/partnership concerns on Non-Repatriation basis?

No.

20. Is permission of Reserve bank required for making investments in new issues of Indian companies on Non-Repatriable basis?

No.

21. Can NRIs make investment in non-convertible debentures of Indian companies?

Yes.

22. Can NRIs purchase existing shares/debentures of Indian companies private arrangement?

Yes.

23. Are incomes/interest earned on investments/deposits held in India by NRIs on Non Repatriation basis allowed to be repatriated?

Yes.

 
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