Particulars |
Foreign Currency (Non-Resident) Account (Banks) Scheme [FCNR (B) Account] |
Non-Resident (External) Rupee Account Scheme
[NRE Account] |
Non-Resident Ordinary Rupee Account Scheme [NRO Account] |
(1) |
(2) |
(3) |
(4) |
Who can open an account |
NRIs (individuals / entities of Bangladesh / Pakistan nationality / ownership require prior approval of RBI) |
NRIs (individuals / entities of Bangladesh / Pakistan nationality/ownership require prior approval of RBI) |
Any person resident outside India (other than a person resident in Nepal and Bhutan). Individuals / entities of Bangladesh / Pakistan nationality / ownership as well as erstwhile Overseas Corporate Bodies2 require prior approval of the Reserve Bank. |
Joint account |
In the names of two or more non-resident individuals provided all the account holders are persons of Indian nationality or origin;
Resident close relative (relative as defined in Section 6 of the Companies Act, 1956) on ‘former or survivor’ basis. The resident close relative shall be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder. |
In the names of two or more non-resident individuals provided all the account holders are persons of Indian nationality or origin;
Resident close relative (relative as defined in Section 6 of the Companies Act, 1956) on ‘former or survivor’ basis. The resident close relative shall be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder. |
May be held jointly with residents
|
Nomination |
Permitted |
Permitted |
Permitted |
Currency in which account is denominated |
Any permitted currency i.e. a foreign currency which is freely convertible |
Indian Rupees |
Indian Rupees |
Repatriablity |
Repatriable |
Repatriable |
Not repatriable except for the following:
i) current income ii) up to USD 1 (one) million per financial year (April-March), for any bonafide purpose, out of the balances in the account, e.g., sale proceeds of assets in India acquired by way of purchase/ inheritance / legacy inclusive of assets acquired out of settlement subject to certain conditions. |
Type of Account |
Term Deposit only |
Savings, Current, Recurring, Fixed Deposit |
Savings, Current, Recurring, Fixed Deposit |
Period for fixed deposits |
For terms not less than 1 year and not more than 5 years. |
At the discretion of the bank. |
As applicable to resident accounts. |
Rate of Interest
|
Deposits of all maturities contracted effective from the close of business in India as on November 23, 2011, interest shall be paid within the ceiling rate of LIBOR/SWAP rates plus 125 basis points for the respective currency/corresponding maturities (as against LIBOR/SWAP rates plus 100 basis points effective from close of business on November 15, 2008).
On floating rate deposits, interest shall be paid within the ceiling of SWAP rates for the respective currency/maturity plus 125 basis points. For floating rate deposits, the interest reset period shall be six months. |
Subject to cap as stipulated by the Department of Banking Operations and Development, Reserve Bank of India :
Banks are free to determine the interest rates of saving’s and term deposits of maturity of one year and above.
Interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits.
|
Banks are free to determine their interest rates on savings deposits under Ordinary Non-Resident (NRO) Accounts. However, interest rates offered by banks on NRO deposits cannot be higher than those offered by them on comparable domestic rupee deposits. |
Operations by Power of Attorney in favour of a resident by the non-resident account holder |
Operations in the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels. |
Operations in the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels. |
Operations in the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments in rupees, remittance of current income to the account holder outside India or remittance to the account holder himself through normal banking channels.
Remittance is subject to the ceiling of USD 1 (one) million per financial year. |
Loans
a. In India
i) to the Account holder
i) to Third Parties |
Permitted only up to Rs.100 lakhs
Permitted only up to Rs.100 lakhs |
Permitted up to Rs.100 lakhs
Permitted up to Rs.100 lakhs |
Permitted subject to the extant rules3
Permitted, subject to conditions4
|
b. Abroad
i) to the Account
holder
ii) to Third Parties |
Permitted
(Provided no funds are remitted back to India and are used abroad only)
Permitted
(Provided no funds are remitted back to India and are used abroad only)
|
Permitted
(Provided no funds are remitted back to India and are used abroad only)
Permitted
(Provided no funds are remitted back to India and are used abroad only)
|
Not Permitted
Not Permitted |
c. Foreign Currency Loans in India
i) to the Account holder
ii) to Third
Parties |
Permitted up to Rs.100 lakhs
Not Permitted
|
Not Permitted
Not Permitted
|
Not Permitted
Not Permitted
|
Purpose of Loan
a. In India
i) to the Account holder |
i) Personal purposes or for carrying on business activities *
ii) Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms / companies
iii) Acquisition of flat / house in India for his own residential use. (Please refer to para 9 of Schedule 2 to FEMA 5). |
i) Personal purposes or for carrying on business activities.*
ii) Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms / companies.
iii) Acquisition of flat / house in India for his own residential use. (Please refer to para 6(a) of Schedule1 to FEMA 5). |
Personal requirement and / or business purpose.* |
ii) to Third Parties |
Fund based and / or non-fund based facilities for personal purposes or for carrying on business activities *. (Please refer to para 9 of Schedule 2 to FEMA 5). |
Fund based and / or non-fund based facilities for personal purposes or for carrying on business activities *. (Please refer to para 6(b) of Sch. 1 to FEMA 5) |
Personal requirement and / or business purpose * |
b. Abroad
To the account holder and Third Parties |
Fund based and / or non-fund based facilities for bonafide purposes. |
Fund based and / or non-fund based facilities for bonafide purposes. |
Not permitted. |
a. When a person resident in India leaves India for Nepal and Bhutan for taking up employment or for carrying on business or vocation or for any other purpose indicating his intention to stay in Nepal and Bhutan for an uncertain period, his existing account will continue as a resident account. Such account should not be designated as Non-resident (Ordinary) Rupee Account.
b. Authorised Dealers (ADs) may open and maintain NRE / FCNR (B) Accounts of persons resident in Nepal and Bhutan who are citizens of India or of Indian origin, provided the funds for opening these accounts are remitted in free foreign exchange. Interest earned in NRE / FCNR (B) accounts can be remitted only in Indian rupees to NRIs and PIO resident in Nepal and Bhutan.
d. The regulations relating to the various deposit schemes available to Non-Resident Indians have been notified vide Notification No.FEMA.5 dated 3rd May 2000, as amended from time to time. The relevant Notifications and A.P. (DIR Series) Circulars are available on our website [www.rbi.org.in → Sitemap → FEMA → Notifications / A.P.(DIR Series) Circulars]. The Master Circular on Non-Resident Ordinary Rupee (NRO) Account [www.rbi.org.in → Sitemap → Master Circulars] may also be referred to. The details of rate of interest on the various accounts, are available in the “Master Circular on Interest Rates on Rupee Deposits held in Domestic, Ordinary Non-Resident (NRO) and Non-Resident (External) (NRE) Accounts” and “Master Circular of instructions relating to deposits held in FCNR (B) Accounts” issued by our Department of Banking Operations and Development, available on our website [www.rbi.org.in → Sitemap → Master Circulars].
e. AD Category – I banks and authorized banks may credit the proceeds of account payee cheques/ demand drafts / bankers' cheques, issued against encashment of foreign currency to the NRE account of the NRI account holder where the instruments issued to the NRE account holder are supported by encashment certificate issued by AD Category-I / Category-II.
f. AD Category – I banks and authorised banks may permit remittance of the maturity proceeds of FCNR (B) deposits to third parties outside India, provided the transaction is specifically authorised by the account holder and the Authorised Dealer is satisfied about the bonafides of the transaction.