NRE SB ACCOUNTS

Eligibility

• Accounts can be opened by remittances from abroad,deposit of foreign exchange brought into India , transfer from existing self NRE/FCNR accounts.
• 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.
• Joint account with resident close relatives is permitted only under Former (NRI) or Survivor (resident) basis.
• Non-Resident Indians can appoint residents to operate their NRE accounts for local payments through a power of attorney.

Benefits

• Withdrawals for local payments or payments abroad in any convertible currency are allowed as per the extant RBI guidelines.
• Standing instructions can be undertaken for periodic payments of insurance premia, school fees, etc.
• Funds from these accounts are freely repatriable.
• Nomination facility is available. – Nominee can either be a resident in India or a resident outside India .

Tax Benefit

• Interest on the deposit is free of Indian Income Tax.
• Use of NRE accounts is obligatory for channelising funds for all repatriable investments in India (including investments in shares and securities).

Salient Features

• Deposit scheme where balance are maintained in Indian Rupees.