NRI BANKING

PROJECT REPORT OF
MARKETING

OF

UNIVERSITY OF

BACHALOR

OF

BANK
MUMBAI

COMMERCE

(BANKING AND

INSURANCE)

SEMISTER V
2014-15

SUBMITTED
Shilpa

BY

S. Trivedi

PROJECT GUIDE
MS

GHANSHYAMDAS

SARAF

COLLEGE

OF ARTS AND
R.S
Malad
B.COM

Campus,

COMMERCE
S.V road,

(west),Mumbai-400

(BANKING AND

064

INSURANCE) 5TH SEMISTER

1

NRI BANKING

ACKNOWLEDGEMENT

I take this opportunity to thank the UNIVERSITY OF MUMBAI for

giving me a chance to do this project.

I express my sincere gratitude to the Principal; Chief Co-ordinator Mrs. Urvi Madam,
Guide Prof. Gurunathan S. Pillai and our librarian and other teachers for their constant
support and helping for completing the project.

I am also grateful to my friends for giving support in project. Lastly,

I would like to thank each and every person who helped me in completing the
especially MY PARENTS.

NRI BANKING

DECLARATION

I MS. SHILPA SURESH TRIVEDI a student of Ghanshyamdas Saraf

College of Arts and Commerce, Malad (w) T.Y.B.C.B.I (SEMESTER V)
HEREGY DECLARE THAT I HAVE COMPLETED PROJECT ON NRI BANKING
in the academic year 2013-2014. This information
Submitted is true and original to best of my knowledge.

NRI BANKING

CHAPTER
NO
01

TOPIC

INTRODUCTION
BANKING:-

Pio

is
card

What
Key
Types

an

ON

09

NRI

10

Nri?

11

scheme

13

is an

OCB?

14
15

benefits
of

Opening

19

accounts
of

NRI A/c

DEFINATION:Definition
Excange
Defination

03

PAGE
NO

Who

02

NAME

of

NRI

under Foreign

24

Management Act,1999
of

PIO

DEPOSITORYS

27

SCHME
4

FOR

NRI BANKING

30

NRIS:NRE A/c

30

Types

34

FCNR A/c

36

NRO A/c

41

Tax
04

of Accounts

Benefits

for NRIs

SERVICES OFFERED
BANK TO NRIS:Banking

Services

Services

offered

Facility

available

BY

VARIOUS
43

by

ICICI

as

Bank

44

per RBI/FEMA

guidelines
05

RBI
ISSUES
GUIDELINES
FOR
MONEY TRANSFER SCHEME:Money

Demand
UAE

48

transfer

International

49

SWIFT transfer

(or bankers)

49

draft

50

Exchange

Wester union

50

Money Transfer

50

Sendwise
Moneygram send
ICICI
06

45

&

money

HDFC bank

transfer

online

today

NRI money

51
52

NRI BANKING

52

NRI INVESTMENTS:Investment

opportunities in

India

55

for

NRI
RBI
07

forms

NRI
INVESTMENT
IMMOVABLE
PROPERTY
INDIA:Rules

for acquisition

foreign

citizen

Mode

of

PAN

CARD

Applying
pan

56

transfer by

NRIs
58

payment

Repatriation

08

IN
IN

of

59

sale

FOR

NRIs:-

for pan

card,charges

proceeds

card,
of

pan

necessity

for

60

card

Demat

a/c

62

CASE

STUDY ON NRI

66

CONCLUSION

70

ANEXXURE

71

FINDINGS AND SUGGESTION

72

BIBLIOGRAPHY

74

NRI BANKING

CHAPTER 1.
INTRODUCTION
an

Indian

abroad

being

applicable
It

is

changes
in

to

that

NRI

Banking

bank

of

your

An
change

As

per

RBI

of

the

Non-Resident,

than

183

days.

This

certain

cases

like

going

overseas

to

inform

the

of

guidelines,

more

mandatory

Introduction:-

in

period
for

your
the

residential

residential

the

event

of

183

employment

of
days
or

status.

status

of

his

stay

is

not

business.

NRI BANKING
With

view

to

banking

channels

residing

abroad

of

India

from
and

by

Resident

the

in

1970

(External)

Accounts

banking

taxes

facilities

in

Resident

Foreign

of

Control
(NRE

Origin

per

business

indicate

intention

to

stay outside

182

days

during

To

meet

the

remittances,
India

"Non

specific

savings,

by

earnings,

in

1970

Indian"

origin

outside

India.

Indian

citizen

who

business

or

on

persons

posted

any
in

studying

if

which

held

in

are
Non-

benefits

like

etc.

[NRI]

is

an

Indian

outside India

for

purposes

in

circumstances

for

an

his

stay

as

indefinite
in

non-resident

citizen

or

of

would

period. An

India

and

Indians

repatriation,

(External)

is

less

related
the

Account

than

to

their

Government

Rules

which

of
are

Regulations.

means

an

Indian

citizens

of

Bangladesh

abroad

is

are

year.

investments

abroad

vocation
UN

of

Control

(NRI)

stays

NRI

Non-Resident

(excluding

Students

India

Rules

INDIAN

vocation

financial

needs

the Exchange

Resident

Indian

be considered

the preceding

introduced

governed

of

also

or

who

PIOs.

FEMA 1999

resident

on

will

and

through

Government

certain

facilities,

RESIDENT
as

the

funds

for

India

Origin

Account

qualify

NRIs

position,

The

repatriation

to

carrying

individual

payment

Accounts)

employment,
an

of

into

Nationality

Regulations.

free

(NRI)

Indian

Indian

remittance

Non-Resident(External)

are available

Indian

National

of

other

balance

India,

WHO IS A NON
A Non

the

Exchange

from

and

person

the

exemptions

savings

the

bolster

introduced

governed

NRI

attract

are also

for
a

an

citizen

Non-Resident.

Organizations

and

and

treated

indefinite
Officials

or
as

foreign

Pakistan)

citizen
residing

NRIs.

period
Diplomats
deputed

on

employment,

posted
by

abroad,

PSU

on

NRI BANKING
temporary

PIO

assignments

CARD

The

are also

this

of

few

be

issued

to
a

long
Officer

same.

The

20

years,

would

In

this scheme,

citizen

of
of

comprehensive
the

Indian

fee

for

be

card,

to

the

fourth

world,

except

Card

would

for

concerned

those

will

Indian

staying

Foreigners

Calcutta,
which

concerned

in

Regional

Chennai)

would

do

have

validity

of

US$1000.

unless

Indian

the

and

the

Under

the

the

for

Scheme.

eligible. The

through

Mumbai,

the

up

be

visa,

(Delhi,

Origin

would

applicants

term

Card

throughout

countries,

Scheme

PIO

settled

Commissions/Consulates

the

"Person

of

eligible

Embassies/High
Registration

Non-residents.

Origin-called

grandparents)

specified

on

launched

Persons

(great

for

India

has

Indian

Scheme,

generation

as

SHCEME

Government

Persons

treated

the

origin"

Pakistan,

context
means

Bangladesh

specified

by

the

Central

He/she

at

any

time

otherwise
a

and

Government

held

an

foreign

citizen

(not

other

countries

as

from

Indian

requires-

time

to

passport;

or

time)

being
may
if,

a
be

NRI BANKING

He/she

or

either

of

grandparents

was

born

defined

the

Government

in

territories
was

at

(as

any

is

Indian

Besides

origin

covered

making

if

be

180

to

stay

done

within

or

back

of

of

India

(ii)

above.

to

their

entitles

Scheme

to

visit

180

in

1935

the

great

India
and

aforesaid

as

other

provided

neither
countries

person

of

simpler,

easier

to

wide

PIOs

cultural

benefits.

The

include:India;

with

the

does

not

days,

then

period

or

roots

the

educationaland

stay

exceeds

Act,

or

or

(i)

register

continuous

resident

thereafter

any

Scheme

the

of visa

requirement

continuous

of

30

Foreigners
exceed

180

registration
days

of

Registration
days.
is

the

If

required

expiry

of

days;

Parity
to

under

India

citizen

financial,

grandparents

India

of

journey
this

requirement

Officer

under

their

economic,

of

above);

of

or

permanently
of

citizen

2(b)

spouse

envisaged

No

to

in

of

benefits
No

to

parents

and

part

smoother,

range

in

became
time

referred

He/she

and

that

his/her

with

the

facilities

latter
ill

Non-Resident
in

Indians

economic,

in

financial,

include:

10

respect

of

educational

facilities
fields

available

etc. These

NRI BANKING

Acquisition,
in

India

holding,

except

Admission
the

of

general

colleges,

State
All

However, they

What

is an

Overseas
by
India

schemes

to

other

to

the

nationality

immovable

institutions

for

including

NRIs-

properties

properties;

educational

of

Life

other

that

shall

Insurance

Government

would

be

in

India

under

medical/engineering

Corporation

holders;

not

enjoy

political

(OCBs)

are

of

India,

agencies;

extended

PIO Card

Bodies

of

include
corporate
extent
or

of

to

NRIs

rights in

would

also

India.

OCB?

individuals

and

and

the

Corporate

and

disposal

etc.

benefits

available

in

quota

IIMs

Governments

and

agricultural/plantation

category

housing

future

be

of

children

IITs,

Various

transfer

of

origin

Indian

nationality

overseas
at

least

resident

or

companies,

bodies which

are
60%

outside
11

bodies

predominantly

origin

partnership
owned,
by

India

resident

outside

firms,

societies

directly

or

individuals
as

also

owned

indirectly,
of

overseas

Indian
trusts

NRI BANKING

in

which

at

held

by

such

persons.

held

by

them

and

facilities

granted

exceptions
held
What

least

in

to

NRIs/OCBs

Investment

in

in

so

te

are

facilities

bank

to

following

accounts

securities/shares

in
of,

The

various

with

certain

ownership/beneficial

interest

nominees.
available

be

at

available

should

irrevocably
actually

as

the

is

be

also

as

interest

interest

capacity

continues

the

beneficial

ownership

long

NRIs

granted
of

the

NRIs

various

are

Maintenance

not

OCBs

the

of

Such

to

them by

are

60%

to

least

60%

NRIs/OCBs?

facilities:
India.

and

deposits

with

Indian

firms/

companies.
Investments in immovable properties in India.

KEY BENEFITS
NRI-Banking
render

our

follows
NRI

modular

Banking

structure. The

solution
12

offerings

various modules

(which

are

stated

NRI BANKING

below)
The

in

seamlessly

Masters

module

enabling

the

end

Interest

Rates

or

from

permits
user

with

Bank,

Facilitates
interest

to

make

regard

to

and

Branch

details

return

authorization

and

parameterization

all

changes

any

and

of

changes

as

reason

holiday

freezing

are

regard

per

also

directives

and

Country,

Exchange

maintainedFavors
entry

overdue

and

opening,
passing

made

Provisions

availed

for

issuing,

to
RBI.

rate

Currency,

of AccountsTransaction

is

done,

details

Interest

Inventory,

details

be

Instrument,

Masters.

to

with

Office

maintenance

rate

fashion.

maximum

Head

Maintains

rate

integrated

easy

passing

and

stop

payment

of

cheques.
Supports

Account

closure,

Preclosure,

Renewal

&

overdue

of
Aids

Deposits.
Day

Processes

Begin,

Quarterly,

Day
and

SB
Hastens

renewal

End

transfer

&
to

Month

Inoperative

End
&

Half

Interest
Deposit

Payment
Supports Acceptance

Receipt

Printing,

Changing

to

RFC,

Overdue
Execution

13

Yearly

Calculation.

&
and

Processing

of

standing

Interest
Process.

instruction.

NRI BANKING

Types of
NRI

accounts

accounts

dealers'

licences

cooperative
permitted
are

to

extends

authorized
boost

Kerala,

Uttar

persons

from rural

Banking

to

Reserve

The

to
and

areas

been

rupees

though

budget

for

particularly

Gujarat

where

in

for
Indian

large

as
in

rupees

well.
Bihar,

number

employed

accounts

they

2007-08

(RRBs)

NRIs

are

Some

specifically

even

banks

states

authorized

India.

from

allow

maintained

in

hold

of

also

rural

from these

NRIs

Bank

financial

regional

remittances

which

have

dealers.

for

be

banks
accounts

Pradesh

Laws

banks

NRI

accounts

would

by

the

commercial

maintain

NRI

dealers

maintained

from

and

not

This

are

with
and

of

overseas.
authorized

in

foreign

currency.
Various

accounts:-

NRE A/c

- non

residential

FCNR-B A/c

NRO A/c

non

RFC A/c

resident

All

can

NRIs

individuals
special

residing

permission

foreign

currency

resident

open
in
from

(external)

ordinary

foreign
such

accounts,
RBI.

14

account.

residential

account.

account.

currency

Pakistan
the

non

rupee

and
Joint

account.
with

the

Bangladesh,
accounts

of

exception
who
two

of

require
or

more

NRI BANKING

non-residents

and

While

the

NRO

accounts

FCNR

recurring

or

(B)

NRE

and

determined

The

are

regional

rural

offer

Banks

deposit

accounts.

As

subject

to

banks.
of

offer

two

case

to

of

and

of

NRE

savings,

interest
should

NRO

not

and

current,

rates,

FCNR

exceed

the

rates

are

accounts,

rates,

during
and

mopping
rates

for

the

currently

at

3.5%

per

RBI

years.

million

interest

only,

either

interest

deposits

also

types

cap,

The

FCNR

banks

the

USD 37,751

lucrative

deposit
as

the

NRE/

term

permitted.

operated

In

period

total

are

be

rates.

statistics,
to

are

facility

is

can

by

to

(B)

fixed

LIBOR/SWAP
apply

nomination

to

2006-2007,

are

up

expected

funds.

bolster

Banks

NRI

accounts

to

transferred

or

as
to

grow with

are

expected

funds.

NRIs,

based

on

their

reparability.
Repatriable Accounts
Funds
maintained
funds

that

can

Non

in

remitted

from

Investments

made

and

investments

such

be

Resident
outside

from

India

foreign
are

External
are

funds

maintained

repatriated
Bank

credited

can
in

be
a

abroad

account.
to

are

Generally,

this

account.

repatriated

overseas,

Repatriable

Demat

account.
Non-Resident
Both

(External)

Principal

and

Rupee
Interest

(NRE) Accounts
can
15

be

repatriated/transferred

out

of

NRI BANKING

India
Savings

rate

resident
Term

on

interest

than

can

be

rates

on

(NRE)

rates

as

LIBOR/SWAP

previous month,
basis

accounts is

at

par

with

savings

rates

in

accounts
deposits

The

NRE

for

made

US

for

to

Term

on

dollar

years.

deposits

the

of

last

cannot

working

corresponding

be

higher

day

maturity

of

the

plus

50

points.

The interest rates on three year deposits also apply in case the
maturity period exceeds three years. The change in interest rate
also applies to NRE deposits renewed after their present maturity
period.

FCNR (B) Accounts

As

in

NRE

accounts,

Presently, deposits
(US

can

be

Dollar,

Australian
Interest
25

principal
made

Pound

Dollar

and

rate-

Fixed

LIBOR/SWAP
minus

both

rates

basis

Sterling,

Canadian

for

in

and

specific
EURO,

are

foreign

repatriable.
currencies

Japanese

Yen,

Dollar).

or

floating

the

respective

points (except

interest

within

limits

currency/corresponding

Japanese Yen).
16

the

of
term

NRI BANKING

The

term

of deposits

can

range

between

to5

years.

NRO Accounts
Only

current

Savings
income
In
own
Banks

NRO
from

case

accounts
shares,

of

term

interest

rates.

can

year

for

once

taxes

of

earnings are

NRIs

and

with

an

NRE/FCNR

are

interest,

deposits,

normally
rent

remittance

up

bonafide

purposes

from

are

paid

out.

properties

Foreign
PIOs
(B)

bank

accounts.

are

to

property

in

allowed

USD

balances

1
in

includes

by

NRIs

and

to
in

(RFC)
India
India

Proceeds
17

to

credit

the
the

rupee

India,

etc.

determine

million

limit

Currency

authorized

to

This

held

returning

operated

from

banks

allow

immovable

Resident

repatriable.

their

per

financial

NRO

accounts

sale

proceeds

PIOs.

Account

can

maintain

an

to

transfer

funds

of

assets

held

RFC

account

from

outside

their
India

NRI BANKING

before

their

return

to

India

can

be

These

funds

are

free

from

all

restrictions

or

investment

in

in

any

form

credited

outside

to

the

RFC account.

as

to

their

utilization

cannot

be

taken

India.

Non-Repatriable Accounts
Non-repatriable
India.
i.e.

These
a

funds
have

Non

are
to

those

be

Resident

which

maintained

Ordinary

accounts

maintained

in

Non-Repatriable

transferred

from

an

NRE

transferred

back

to

Non

Resident

When
is

Ordinary

resident

designated

The

NRO

current,
NRO
The

cannot

account.

be
to

account

Investments

repatriated
an

bank

but

account.
NRO

made

have

to

Money

account

becomes

an

NRI,

accounts

could

once

cannot

his

Rupee

existing

(NRO)

savings

be

account

account.

be

maintained

in

the

nature

or

term

deposits.

NRIs

can

also

for

depositing

their

funds

earned

from

NRO

can

be

opened

to

take

accounts

be

(NRO) Account

Non-resident

saving,

of

account.

as a

interest

separate

Demat

account

NRE

Bank

from non-repatriable

an

in

out

recurring

accounts

from local
is

of
open

transactions.

accountable

to

tax

laws.
NRO
have
or

accounts
left

India

permanently

Funds

from

in

NRO

up

foreign

accounts

in

the

employment

name
or

of

NRIs

business

who

temporarily

country.
are

18

not

repatriable

or

transferred

to

NRI BANKING

NRE

accounts

without

However, NRIs,
resident
from

NRO

approval

of

the

Foreign

Nationals,

retired

of

Indian

citizens

can

Dealer,

the

prior

PIOs,

widows

Authorized

the

up

to

account

USD

or

one

from

employees

or

non-

remit,

through

the

per

calendar

year

million

income

RBI.

from

sale

of

assets

in

India

OPENING OF NRI ACCOUNT

HOW TO

OPEN

NRI ACCOUNTS WITH A BRANCH

IN

INDIA
To open
form

an

and

Passport

NRE
mail

it

to

please

the

complete

branch

of

the

your

account

choice

opening

along

with

copy

Visa/residence
2

account

permit

photographs

initial

money

Your signature
Indian
Any

may

be

verified

by

Embassy/consulate
person

Notary
Any

remittance

of

known

to

the

Bank

public
our

offices

abroad

19

anyone

of

the

following;

NRI BANKING

You

can

open

NRE

Saving

Fixed

Deposits

in

Indian

Fixed

Deposits

in

Foreign

NRO

accounts

(Rupee

You

can

authorize

of

Authority

Letter

Nomination

Bank

a/c

resident

Facility

to

Current Accounts
Rupees
Currency

accounts
operate

available

for

your

crediting

account

through

(Nominee

can

income
a

be

Power

in

of

India

Attorney

resident

or

Indian

also)

Procedures

&

Non-Resident
remittances

in

is

shall
no

the

ceiling

be

term

deposit

after

such

NRE

will

along

with

your

with

the

the

opening

amounts

your

credit

form.

remitted

for

returns

treated

continue

as
to

to

India,

Resident

earn

same

the

account.
rate

NRE

account

However

NRE

maturity

even

till

conversion.

accounts

resident

enclosed
on

opened

channel.

depositor

automatically

Nomination

be

account.

NRI

will

can

Banking
be

Non-Resident

When

non

accounts

through

Photograph
There

Benefits:

earn

facilities
or

more
are

interest
available

resident.
20

than

domestic

for

registration

deposits.
in

favor

of

NRI BANKING

Loans

against

investment
The
It

up

income

case

to

are

90%

of

free

from

allowed

the

from deposit

is also

Documents
In

deposits

purposes

other

than

deposit.

is free

Gift

for

tax

from

for

Indian

one

time

Income Tax.
gifting.

Required:-

account

Indian

passport

Green

Card

permit

for

opened

with

as

in

person:

overseas

resident

residence

USA

or

permit

address

for

Hongkong

or

USA,

ID

work

H1

card

permit

Visa

for

(i.e.

as

work

residence

of

Hongkong)
Separate
Indian
passport.

proof
address

Last

work
wage

Non

and

Photograph

For persons
Initial

of

Resident

resident
of

employed

status

Visa

individual

permit

account

with foreign

contract
slip
21

if

the
is

passport

not

holder

shipping

company

holds

included

in

NRI BANKING

For contract

employees

Last

contract

work

Letter

from

foreign
return

vessel
to

case

All

attested

(not

overseas

of

the

more

address

documents
relevant

by

any

Indian

embassy

Local

bank

Minimum

agent

confirming

next

date

of

than

six

months

from

current

work

contract

joining
date

of

the
last

India)

Principal's
In

local

above
one

in

by

mail

mentioned

of the

overseas

balance
to

sent

or

documents

signatures

to

be

following:

notary

which

one

can

from

bank

NRO

Saving Account

Rs.5,000/-

NRO

Current Account

Rs.10,000/-

NRO

Term

NRE

Savings Account

Rs.5,000/-

NRE

Current Account

Rs.10,000/-

NRE

Term

open

bank):-

Deposit Account

Deposit Account

22

Rs.5,000/-

Rs.10,000/-

an

account

(Differs

NRI BANKING

FCNR

Term

in

GBP or

If

you

of

NRO

Term

NRE

NRE

Term

the

money

Interest

payment

for
on

Deposit Account

Savings Account

USD

500/-

or

opening/credit

to

its

equivalent

Opening

of

Type

account

an

account.

accounts:

Half

yearly

Quarterly

Deposit Account

Term

of

Account

Euro

submit

Frequency

FCNR

Deposit

Deposit Account

Half

yearly

Quarterly

JOINT ACCOUNTS:-

Joint Account
Resident

with Joint Account

Indians

Non-Resident
Indians

NRO

Yes

Yes

NRE

No

Yes

FCNR

No

Yes

23

with

NRI BANKING

CHAPTER
2.

NRI

definition-

under Foreign

Exchange

24

Management Act,

1999

NRI BANKING

Definition

of

an

NRI :

Introduction:
An

Indian

same

has

Foreign
other

abroad
two

per

popularly

important

Exchange

as

is

definitions

Management

the

known

as

Act,

one

1999

Income Tax Act,

an

NRI

coined

but

the

under

the

and

the

[FEMA]

1961.

FEMA definition:
The

most

accounts

relevant

and

India

is

Act,

investments
the

1999

[FEMA],

which

[FERA]

being

who

stays

carrying

outside

on

circumstances
an

Section
Person

1973-

Outside

which

of

resident

person

eighty-two

who

has

the

vocation

indicate

his

Foreign

term

gone

out

purpose
outside

intention

Management

from June

the

of
India

in

Exchange
1,2000.

used

for

an

of

India

or

employment

or

or

any

other

to

stay

outside

India

than

one

hundred

and

period.

FEMA,1999
in

residing
days

or

the

bank

properties

Exchange

effect
is

various

immovable

replaced

with

for

NRI's

Foreign

India

India

an

and

by
has

person

business

uncertain

2(v)

movable

provided

Residing

NRI

for

in

concerning

one

Regulation Act
Person

definition

India" means
in
during

India
the

for

more

course

25

of

the

preceding

financial

NRI BANKING

year

but

does

person

who

India,

in

either
on

(a)

for

or

(b)

for

carrying

India,
(c)

not

include

has

gone

out

of

India

or

who

stays

outside

case

taking

up

employment

on

outside

India

outside

India,

business

or

or
vocation

outside

or
for

indicate

any
his

other

purpose,

intention

in

to

stay

come

to

such

circumstances

outside

India

for

as
an

would
uncertain

period;
a

person

otherwise

who

or

for

carrying

for

any

on

taking
on

other

intention

(a) any
India,

or

stays

in

India,

in

India,

or

person

to

up
in

employment

India

purpose,
stay
or

in

body

in

business
such

India

or

vocation

circumstances

for

an

corporate

(b) an office, branch or agency in

by a person resident outside India,
(c)
an
controlled

in

either

case,

in

India,

or

than

for

his

has

uncertain

outside

India"

26

would

or

India

owned

means

indicate

period;

registered

office,
branch
or
agency
outside
by a person resident in India;

2(w) "person resident

resident in India;

as

incorporated

India
person

or

in

controlled
owned

who

is

or
not

NRI BANKING

Non
in

Resident
the

either

Indian,

regulations
a

citizen

Recently

RBI

foreign

investments

simply

NRIs

NOW,

reading

an

Indian

Foreign

defined
Person

a
and

that

for

the

first

outside

person

of Indian

students

studying

and

time

defined

India

who

Origin".
abroad

accordingly

is

be

also

eligible

be
for

NRE/FCNR a/cs

of

"a

person

person
who

the

resident

is not

definitions

outside

Resident

India

in

together,

"

is

India."

it

can

be

outside

India

are

both:
residing

Citizen

of

outside

Indian

Non-Resident

of

Indian

India

origin

and

residing

also

Indians.

Origin:

Regulations

define

Person

of

Indian

Origin

as:

person,

being

citizen

Bangladesh,

Passport.
a

or

FEMA

and

Citizen

F.E.M.(Deposit)
(PIO)

resident

both

that

as

person

under

as " a

summarized

India

definition

put

is

has clarified

as

the

phrase

as

of

treated

And

the

person

of

who

any
at

country

any

other

time

than

held

an

Pakistan
Indian

or
who

grandparents were

himself

or

citizens

either
of

of

India,
27

his
or

parents

or

any

of

his

NRI BANKING

spouse

of an

spouse

of a

2(xii)

'Person

other

than

he

at

any

he

or

either

citizen

the

of

Indian
person

covered

Indian

Origin'

Bangladesh
time

or

held

India

the

person

referred

to

Person

of

is
in

This

in

is

regarding

acquisition

Probably

with

Indian

Origin

Property

definition

immovable

an

and
in

only,

this
Iran,

As

immovable

grandparents

Accordingly

of

was

India

or

or
citizen

defined

or

under

and

property

father

or

and

spouse

Person

of

of
is

&

person

Regulations

re:

further

earlier
Origin
28

rules

property

in

India.

control

of

defined

persons

of

narrowed

to

exclude

Sri

Lanka,

Bhutan.

grandfather

Indian

to

Bangladesh,

transactions

in

comes

restricting

strictly

Pakistan,

Nepal

it

immovable

ensuring

hands
of

when

of

definition

China,

person's

of

the

Afghanistan,

or

country

parents

Constitution

Indian

narrowed

intention

citizens

the

an

transfer

being

herein

any

India:

individuals

regards

of

his grand-

1955)

(PIO)

further

properties

Origin

above.

sub-clause

Indian

Immovable

citizen

of

the

of

of

(ii)

or

any
of

(57

or

passport;

virtue

spouse

(i)

if

parents or
1955

under

Pakistan,

by

Citizenship Act,

or

means

Indian

of his

of

citizen,

is

it

may

be

included

noted

unlike

definition.
is

defined

herein

as:

that

parents

NRI BANKING

a) Who
An

held

an

individual

Who

Passport

than

citizens

other

Lanka, Afghanistan,
b)

Indian

China,

himself

or

Iran,

his

at

any

of

Nepal

father

time?

Pakistan,
and

or

Bangladesh,

Bhutan,

grandfather

Sri

or

was

citizen

of

India.
[Regulation
Property

2(c)

in

'a

of

India)

person

citizen

or

China

(a)

at

(b)

who

citizen

2(c)

or

Nepal

Iran

or

of

India

of

whose

father

virtue

1955

(57

Indian

origin
as

of
of

number of

or

the

of

Immovable

Lanka

(not

being

or Afghanistan

who
OR
whose

in

grandfather
of

was

India

or

a
the

India:-

Management

NRI's
but

Sri

Constitution

days stay

an

individual

1955);

Exchange
India,

Transfer

an

Bhutan),

of

by

in

or

or

passport;

incorporated
year

Bangladesh

Indian

Foreign

means

held

either

doubt,

treated

or

time,

during
be

origin'

or

any

also

Indian

and

2000]

of Pakistan

Conditions

has

(Acquisition

Regulation

of

Citizenship Act,

No

F.E.M.

stay

simply

has

gone

out

of

an

NRI

irrespective
29

India
of

of

Act,

1999

182

days

or

less

person

of

he

to

speaking
for

if

settlement

number

of

definition

days

is
he

has

NRI BANKING

stayed

in

India.

Stay

in

India

The

Act

also

be

an

NRI

returned

to

business

or

indicate

his

days

visit

lays

India

or

will

continue

in

India
provided

or

Resident
than

Body"

or

not

carrying

on

as

would

uncertain

period.

irrespective

of

number

to

NRI

during

his

to

India

for

for

an

be

not

an

returned

(OCB)

means

the

Company,

Partnership
lies

or

more

ownership

Trust

wherein

60

or

more

financial

by

per

Indians directly

Corporate

the

Indians

Body

and

extent

other
of

and

includes

cent

beneficial

or

with

interest

is

NRIs.

society

to

to

has

circumstances

India

has

he

60

firm,

sixty

he

provided

continue

wherein

Overseas

indirectly

in

will

etc.

held

partnership

stay

India

other

abroad,

"

any

person

employment

settled

NRI

Corporate

NRIs

or

up

an

"Overseas

2(xi)

taking

in

to

settlement.

Society

such

visit/stay

for

permanent

Firm,

that

intention

India

irrevocably

his

vacation

stay

to

visits:
down

during

Accordingly,
of

during

indirectly

at

(OCB)"
corporate
least

overseas
interest

but

means
body

sixty

per

trust

in

is

held

company,

owned
cent
which
by

directly
by

Non-

not

less

Nonresident

irrevocably.

Conclusion:
At

the

cost

permanently

of

settled

repetition,
and

it

residing

is

once

outside
30

again
India

said
will

that
continue

an

NRI
to

be

NRI BANKING

treated
days of

as

an

NRI

his stay

in

under
India

F.E.M.A.irrespective
or

otherwise.

31

of

the

number

of

NRI BANKING

CHAPTER 3
DEPOSITORYS
SCHEM

Non-Resident
Eligibility
Non
can
with

- NRE Account

Resident
open

(External) Account

and

banks

Indians

(NRIs)

maintain
(including

NRE

and

Persons

accounts

co-operative

32

of

with
banks)

Indian

Origin

authorized
authorized

(PIOs)

dealers
by

and
the

NRI BANKING

Reserve
The

account

holder
in

Bank

of

India

has

to

himself

and

(RBI)
be

not

by

accounts

in

to

maintain

opened

by

the

the

holder

of

such
Non
the

accounts.
Resident

power

account

of

attorney

India.

Opening

NRE

Bangladesh/Pakistan
Types

of

Deposit

accounts.

Debits

&

names

nationality/ownership

Accounts

Payments

the

Savings,

of

individuals/entities

requires

approval

Current,

of

of

RBI

Recurring

or

Fixed

allowed

freely.

source

Credits:

for

local

expenses

Credits

to

an

account,

would

be

permissible

of

and

investments

funds

only

if

are

emanating
the

funds

from
are

of

local
a

repatriable

nature.
Permitted

Credits

Proceeds

of remittances

to

India

can

be

in

any

permitted

currency.

Proceeds
his

of personal

foreign

drafts

in

received
person

in

in

account

any

Indian
foreign

during

authorized
resident

currency

payable

expressed

cheques

and

permitted

of

which

currency, deposited

his temporary
India,

is

visit

satisfied

the

by

the

account

including

by

to

India

that

the

the

bank

will

account

provided
account

on

instruments

reimbursement

travelers cheques/drafts

33

holder

travelers cheques,

currency

rupees for

dealer/bank

outside

drawn

be

holder

in

the
holder

are

is still

NRI BANKING

standing/endorsed
case

of

(i)

of

foreign

during

the

his

amount

(CDF),

the

where
notes

by

the

account

satisfied

that

Permitted

temporary

are

holder

account

outside

Transfer

NRE/FCNR

notes

issued

tendered

to

India,

on

Currency

and

in

outside
by

the

India.

account

provided
Declaration

Form

the

himself

authorized

and

the

person

is

dealer

in

person

authorized

dealer

is

resident

outside

India.

disbursements

to

person

Investment
company

or

other

permission
of

India

eligible

in

prescribed

of

were

holder

Debits

Remittances

Rate

they

to

holder

Any

account

and

tendered

Local

the

visit

declared

and

applicable,

the

of

currency/bank

was

(ii)

other

name

travelers cheques,

Proceeds
holder

in

accounts

to

of

maintain

the

such

shares/securities/commercial
for

purchase

of

account

holder

To the

any

account.
paper

immovable

of an

property

in

Indian
India

within

regulations.
transaction
granted
Interest

if

by
-

covered

the
as

Reserve

per

the

under

general

or

special

the

Reserve

Bank.
directives

of

India.

Loans

or

against
account

Security

of

Funds

holder

34

held

in

the Accou

Bank

NRI BANKING

i)

For

personal

(except

purposes

or

for

agricultural/plantation

carrying

on

business

activities/investment

in

activities

real

estate

business).
ii)

For

making

direct

For

acquisition

of

investment

in

India

on

for

his

non-repatriation

basis.
iii)

flat/house

in

India

own

residential

use.
In

January

deposits
20

2007,

and

the

RBI

securities

for

imposed
NRIs

to

restriction
a

on

maximum

loans

of

up

against
to

Rs.

or

for

lakh
To third

The

parties

loan

carrying

should
on

business

activities/real
for

estate

dealers

to

fund

grant

Resident
NRE

accounts

NRE

may

depositors

Change

the

personal

(other

purposes

than

The

loan

allow

their

overseas

and/or

non-fund

agricultural/plantation

should

not

be

utilized

India

based

of

also

held

should
in

the

agree

liquidation

Resident

Accounts

funds

against

and

necessary, for

for

activities

business).

outside

Authorized

if

utilized

re-lending.
Loans

be

of

security
to

based
of

these

re

facilities
funds

remittance

of

to

held

funds

Non

in

from

the
India

debts.

Status of Account
be

branches/correspondents

designated

accounts

35

may

Holder
as
be

resident

account

transferred

to

or
the

NRI BANKING

Resident
is

Foreign

eligible

account
to
to

the

holder

account

maintaining

RFC

Account)

at

the

option

the

return

(except

of

funds

authorized

Joint

individuals
persons
holder

the

account

of

holder

of

the

the

account

is on

short

of

in

Non

Resident

or

Indian

bank

the

account

opened

Nominee

in

allow

the

can

case

be

of

permitted

an

account

Non

Resident

the

jointly

Operation

by

can

payments

operate

to

be

Power

of

foreign

currency

be

Power

the

account

origin.

When

one

of

authorized

dealer

may

either

continue

as

account

at

as

to

the

is

not

permissible.

in

the

name

accounts
of

are

the

joint
delete

account

option

by

of

Non

eligible

NRI

India.

Attorney

on

the

NRE

on

behalf

notes/bank

holders

NRE

these

of

(POA)

more

of

resident

visit

to

resident

opened

made

Attorney

all

Opening

with

his temporary

or

account

account

may

two

or

the

the

of

provided

nationality

holders.

Account

names

residents,

or

redesignate

the

be

become

Resident

to

or

holder

where

dealer

may

name

during

upon

holder

is deceased.

Accounts

NRE

the

immediately

Other Features

An

(if

India).

who

his

Accounts

India

Repatriation
by

(RFC)

holder

holder
visit

for

Currency

Resident

accounts.
36

of

but

of

account

holder.

The

credit

proceeds

of

and

the

cannot

travellers

only

Attorney

accounts

holder
notes

Power

for

cheques

to

local

the

NRI BANKING
In

cases

where

the

has

been

granted

him

investments
the

in

account

India,

to

Currency

Eligibility
With

to

the

and

NRIs

and

PIOs

are

eligible

an

be

opened

at

in

currency
the

risk

with

holders

cannot,

bank

in

from
to

Bangladesh
maintain

an

India.

funds

remitted

designated

currency.

than

designated

from

outside,

etc.

the
other

and

operate

cost

the

of the

currency

also

remitter.

FCNR Account

account

can

transferred

FCNR

be

to

FCNR A/c

authorised

FCNR accounts,

make

FCNR (B) Account

origin

to

or

Indians)

Maintain

with

to

by

accounts.

Indian

all

Bank

POA

of

Conversion

The

NRE

designated

permitted

persons

should

of

is

of

Remittances

Features

Reserve

exception

NRE/

permitted

bank

investments.

(Non-Resident

may

existing

by

holder

such

from

and

account

Accounts

POA

or

Open

Pakistan,

FCNR

the

gifts

holder

permission

facilitate

however, make

Foreign

account

accounts

be

opened

from an
can

be

with

existing
opened

37

funds

NRE/FCNR
with

remitted

from

abroad,

account.

designated

currencies,

which

NRI BANKING

are:

GBP, USD,

Conversion

to

the

Only

FCNR

Banks

of

of

for

deposits

also

free

to

on

FCNR

from

Operations

and

account

half-yearly

For
and
Funds

country

at

the
no

in

are

free

rates,

less

one

FCNR

to

at

cost

accounts,

offer

in

on

interest

on

basis

points

for

LIBOR

rates

plus

floating

rate

determined

by

25

year, and

over

decide

can

year.
a

fixed

or

periodically

Bank

and

(Department

choose

the

periodicity

payments.

The

interest

account

debits

similar

versa,

from

permitted

Euro.

years.

Reserve

annual

conversion
vice

the

of

Banking

Development).

permissible
are

is

and

term deposits.

the

holder

to

to

reviewed

FCNR (B)

accounts

LIBOR

months

are

banks

points

rates

new

to

are

currency

maintained

between

directives

For

months

below

Interest

be

deposits

interest

The

can

guidelines,

basis

Japanese Yen

designated

RBI

deposits

Mark,

holder.

deposits

range
per

50

another

account

term

time
As

to

Deutsche

of

to

or

credits,

the

NRE

extra

from

days rate

FCNR

NRE/NRO

and

currencies,

the

account

cost

to

the

can

the
38

interest,
be

from

credited

to

account.

regulations

for

FCNR

to

rupees

accounts.
designated

currency

of conversion
are

of

allowed
account

will
to

holder.

apply.

move

within

the

NRI BANKING

For

loans

and

conditions
In

case

as the
of

penalty

overdrafts

is

NRE

premature
levied.

against

accounts

accounts,

the

same

apply.

withdrawal

Interest

FCNR

of

the

FCNR

on

the

account

rate

if

paid

Term
is

Deposit,

calculated

a
at

a
1%

below

the

committed

accounts

are

closed

prematurely.
However,

no

months,

and

directives
these

from

terms,

FCNR A/c
NRI

interest
the

issued

at

contracted

the

FCNR
effective

from

maturity,

account

or

for

the
these

the

required.
Status

of

interest

even

after

the

account

to

resident

rates

and

accounts

are

are

Rupee
the

accounts

apply

to

deposits

same

from
39

reserve
as

requirements
resident

of return

converted

Deposit

accounts,

Indian.

treated

holders date

accounts

funds

on

maturity

Resident

of

prevail

per

the

joint

repatriation

guidelines

as

till

for

For

RBI

paid

than

continue

interest

FCNR

be

less

can

rate

account

to

for

FCNR

changes

these

The

Resident

the

held

have

when

in

status

except
deposits,

as

deposits

bank.

and

after Change

holders resident

As

as

on

would

apex

such

However,

paid

penalty

deposits

date

On

is

to

to

either

of

accounts

India.
an

RFC

those

for

NRE

account,

the

same

account.

rules

as

too.
the

FCNR

NRI BANKING

conditions
The

RBI

as those

for

does

provide

not

Other Features

Reserve

Bank

will

Lending

of

accounts

not

resources

are

Non-Resident

not

NRE

any

provide

to

Rupee

apply.

guarantee

foreign

mobilized

subject

Ordinary

accounts

by

any

on

foreign

exchange

authorized
interest

guarantee.

dealers

rate

exchange.

under

these

stipulations.

(NRO) Account

Eligibility
Any
a

person
NRO

bank

for

or

accounts

fixed

deposit

these

maintaining

Joint

an

outside
authorised

conducted
of

in

from

the

dealer

Indian

Bangladeshi

approval

India

is

entitled
or

an

to

open

authorised

Rupees.

or

Pakistani

nationality

or

RBI.

of Accounts

NRO

Joint

entities

require

residing

with

transactions

ownership

on

entity

account

Individuals

Types

or

can

be

opened

accounts. The

accounts

and

as current,

RBI

issues

savings,

determines

the

guidelines for

recurring

rate

opening,

of

interest

operating

them.

Accounts with
accounts

are

Residents/Non-residents

permitted

with

40

resident

and

or

non-residents.

and

NRI BANKING

Permissible
Credits

Credits/Debits

Remittances

received
Any

from

in

outside

freely

freely

the

account

during

exceeding

of

has

cash

Rupee

funds

they

Current

or

to

are

interest.

immovable
funds

USD

5000/-

supported

earned
Even

proceeds

through

acquired

can

be

deposited

or

equivalent

its
a

by

such
from

out

to

Currency
an

outside

India,

channels

currency.
visit

by

from

banking

holder's

supported

in

normal

currency

account

brought

property

or

foreign

foreign

be

funds

through

the

be

must

income

India

convertible

convertible

currency

if

of

India.
in

into

Foreign

the

Declaration

Encashment

form
Form.

Certificate,

India.

as

rent,

sale

of

rupee

dividend,
assets

or

pension
including

foreign

currency

inheritance.

Debits All

payments

Payment

pension,

outside
interest

Repatriation

bonafide

towards expenses

up

purposes

India
etc.
to

in

of
India

the

investments

current

USD One
with

and
of

income

the

million,

approval

41

like

account
per

of the

in

India
rent,

dividend,

holder.

calendar

year, for

authorised

dealer.

all

NRI BANKING

Remittance
NRIs

and

year,

out

PIO
of

acquired
of

of

from a

held

the

of

immovable

resident

or

Other

remittance
Assets

in

in

USD

the

currency

Indian,

One

NRO

India

account

of

assets

funds

or

out

of

NRIs and

property

purchased

PIO may

by

them

financial

assets:

There

proceeds

of

other

by

of

inheritance:

acquired

No

satisfied

of

that

funds

way

assets

lock-in

way

could

be

in

India

of

inheritance

are

sale

out

funds

proceeds

when

they

were

NRI

or

PIO.

period

for

financial

here

currency

remit

lock-in

through

applies

proceeds

as

is no

acquired

period

the

calendar

which

rupee/foreign

Rupee

sale

per

acquired
by

of

of

million

provided:

property:

out

upto

proceeds

foreign

proceeds

remitted.

sale

acquired

Immovable

is

balances

resident

(a)

Sale

remit

or

Assets

(b)

may

from

rupee

Assets

assets

inheritance
if the

can

be

authorised

from inherited

dealer

property.

Remittance of assets out of NRO account by a person

resident outside India other than
NRI/PIO
A foreign national who is not a citizen of Pakistan, Bangladesh,
Nepal or Bhutan and who
has

retired

has

inherited

is

as

widow

her

deceased

upto

USD

an

employee

assets

from

residing
husband
one

outside
who

million

per

in

India,

resident
India
was

Indian,
and

calendar
42

has

resident
year

or
inherited
Indian
on

assets
can

production

of

remit
of

NRI BANKING

documentary

evidence

inheritance

or

to

legacy

support

of

assets

the

to

acquisition

the

authorised

by

way

of

dealer.

Restrictions
The

above

property
Lanka,
sale

facility

is

not

China,

of

extended
from

of

Foreign

Nationals of

Foreign

nationals of

by

account

foreign

the

exchange

to

the

account

account
term,

should

of

Account

NRI

deposits

loans

requirements

are
or

visit

permitted

visit

to

to
to

India

India
open

with

funds
or

balance

in

into

foreign

the

currency

for

leaves

for

less

than

six

months.

The

credited

with

any

local

funds

during

accrued

on

provided
the

it.

Overdrafts by Authorised

Dealers/

Bank

to

parties

holders and

authorized

India,

NRO

he

account
by

on

when

interest

Loans/

Rupees

fixed

The

for

be

to

India. The

bank

maintained

not

extended

not

channels

by

holder

of

banking

to

the

Remittance

normal

brought

Sri

Bhutan.

are

their

through

is

immovable

Bangladesh,

Bhutan.

and

origin

of

Pakistan,

assets

origin

on

Holders and Third

Loans to
Indian

India

account

was

except

Grant

non-Indian

sale

and

Nepal

non-Indian

is converted

payment

Nepal

Bangladesh,

outside

of

financial

(current/savings)

from

account

of

Pakistan,

from

citizens

Iran,

other

citizens

remitted

to

Afghanistan,

proceeds

NRO

repatriation

to

dealers

third

(banks)

parties
against

is granted
the

in

security

provided:
utilized
for

only
business

for

meeting

and
43

not

the

borrower's

personal

for

agricultural/plantation

NRI BANKING

/real

estate

RBI

or

relending

regulations

activities

pertaining

to

margin

and

rate

of

interest

will

apply
All

norms

and

and

industry

considerations

will

apply

to

which

loans

apply

and

to

facilities

loans

to

trade

granted

to

third

parties.
The

authorized

holder
the

subject

interest

Change
(a)

of

for

resident
carrying

of

as

(b)

From

the

discretion

shifting
do

may

purpose

indicating

period.

Where

the

to

and

be

to

the

account

compliance

with

(Ordinary)

his

to

up

employment

existing

Account,

and

Nepal.

account

except
For

in

the

is
the

latter,

NRO accounts.

Resident

re-designated
returns

for

carrying

on

his

objective

to

account

taking

India,

change

holder

account

holder

for

Bhutan

not
to

India

outside

Non-Resident

or

the

leaves

business

account

employment,

overdraft

Non-resident

Non-Resident

once

India,

to

accounts

accounts

an

Status of Account

on
a

NRO

allow

commercial

Indian

persons

resident

may

directives.

Resident

the

to

his

Resident

designated
case

to

rate

From

When
or

dealer/bank

holder

continues

44

as
to

resident
India

business
stay

for

or

in

India

is

only

on

to

be

rupee
for
for

treated

accounts

taking
any
an

other

uncertain

temporary
as

up

visit

non-resident

NRI BANKING

during

the

visit.

Treatment

of

Loans/

Overdrafts in

the

Resident

Status of

In

case

of

overdraft

facility

to

continue.

In

of

bonafide

Payment

of

loan

payable

account

of a

account

of the

may

to
to

deceased

India

and

may

at

this

case,

made

by

of

who

loan

subsequently

its discretion
payment

inward

or

of

allow
interest

remittance

or

nominee

holder

is credited

to

the

NRO

the

NRO

nominee.

Students

going

abroad

for

(NRIs)

International

in

India.

account

going

and

loans
be

availed

from

person

to

had

non-resident

continue

Change

Nominee

to

All

of

Non-resident/Resident

Facilities

NRIs.

be

resources in

funds

amount

Indians

in
dealer

repayment

The

resident

authorised

and

of

while

who

the

loan

out

Indian

NRI,

the

Event

Borrower

resident

facilities

becomes

the

the

studies

for
are

eligible

for

availed

of

by

them

extended

as

per

FEMA

Credit

are

abroad

Cards
45

all
as

studies
treated
the

as

Non-Resident

facilities

residents

in

regulations.

enjoyed
India

by
will

NRI BANKING

Authorized

dealers

to

and

NRIs

transactions
held

Income

Tax

in

the

remitter

and

formats

prescribed

of

Finance,

dealers

Interest

Tax

income

On
of
rate

on

by

foreign
of

&
will

NRO

RBI.

Such

the

remittance

or

out

of

tax

are

production
a

allowed

of

to

be

statement

by

Chartered Accountant
Board

made

in

of Direct Taxes,

the
the

Ministry

India

FCNR
be

deposits
deducted

are

free

of

at

source

income
on

all

tax.
interest

accounts.

return

exchange
20%

of

Central

of

Cards

for NRIs

NRE

permanent

inward

of

Credit

FCNR/NRE/NRO Accounts.

from

the

Government

30%
in

on

Certificate

TAX BENEFITS

payment

International

permission

by

cardholder's

after

issue

the

made

the

authorized

to

without

be

remittances,

by

allowed

PIO,

can

balances

The

are

to

India,

funds

(excluding

income

would

be

surcharge)
46

on

all

eligible
till

investments
for

maturity

out

flat

tax

of

the

NRI BANKING

investments.

CHAPTER 4
SERVICES OFFERED BY
VARIOUS BANK TO
NRIS

BANKING

SERVICES
47

NRI BANKING

NRI

banking

like

home

services
loans,

Bank,

Citibank,

private

banks

Reserve

Bank

personal
HDFC

that
of

loans

hold

the

major

regional

rural

banks

maintain

NRI

Bihar,

Kerala,

rural

population

The

banks

also

offer

home

loans

for

buying

loans

for

and

have

Another

FDI

new

various

money

or

convenient

licenses

and

from

savings,

certain
been

the

earnings,

cooperative

specifically

increase

services

modifying

NRI

large

and

permitted

remittances
chunk

of

in
the

to

the

NRI's

that

property, housing
on

the

cover

renovation

existing

properties,

products.

Direct

Investment)

services

and

ICICI

services.

where

residential

loan

transfer

like

abroad.

finance

other

(Foreign

would

finance

nationalized

remittances,

also

Gujarat

settled

constructing

loans and

banks

other

dealer's

banks,

accounts. This

personal

accounts,

repatriation

(RRB's)

have

many

provide

commercial

U.P.

Various

authorized

(RBI)

savings

etc.

and

and

Besides

quick,

deposits,

Bank

India

investments

to

including

provided.

economical

fund

magnet

has

Various
remit

been

banks

to

the

provide

India.

These

include:
Online

remittance

services

Remittance

of

funds

to

Telegraphic

or

wire

transfer

Fund

Many

transfer
banks

through

also

offer

partner

cheques/
Demat

exchange

DD's
account
48

houses

in

and Travelers'
services

to

India

cheques.
the

NRI's

that

NRI BANKING

enable

NRI's

online

stock

investment

and

Special

NRI

credit

cards

acceptable

globally

various

banks.

have

drawn

SERVICE
Rupee
you

NRI

OFFERED
plan

with

by

specialized

enormous

plus

money.

These

the

Now

in

Rupee

plus

plan.

rate

being

banks.

In
of

Rupee

Currencies

:-

which

be

will

Minimum
Tenor:
How
money

in

denominated
FCNR

as

Deposit

the

can

:-

regulated

by

Rupee

FCNR.

we

and

being
to

banking

with

accounts

and

NRE

on

your

deposits

:-

earn

NRE-FD
same

way

across

to

higher

make

returns

in

FD.

funds

in

any

USD (if

not

in

or

earned

nearly

devised

providing

hard

you
is

in

your

returns

RBI,

smarter

to

available

believe

on

offer

have

USD 25,000

year

NRE

interest

plan

compared

converted

plus

plan

harder

you

- for
does

plus

work

NRI

we

higher

rates

and

Bank,

even

interest

terms

ICICI

earn

Rupee

are

services.

BANK:-

can

the

trading

India.

returns

does

money

to

competitive

What

your

funds

At

most

you

investing

services

BY ICICI

:-

share

convertible

currency,

USD already).

equivalent.

only.
plus

FD
This

plan

directly,

work?
the

FCNR

earns

rates.

49

Instead

money
interest

is
as

of

putting

put

in

per

the
USD

prevailing

NRI BANKING

Additionally,

at

Agreement
USD to
Rupee

is

plus

per

assured

at

plan
higher

the

time

the

of

drawn
a

to

given

compared

exchange

the

maturity

on

is

rates.

following

banking

facilities

(Non-

Resident)
Account

(Banks)

Scheme(FCNR(B)

an

open

amount

of

average

returns

are

your

in

NRE

FD

rupee

terms

are

money
in

irrespective

available

the

to

of

future

as

Account)
NRIs/PIOs

Non-Resident

(Non-Resident

(External)

Ordinary

per

Scheme(NRE

Scheme(NRO

Account)

Account)

NRIs/PIOs

Any

person

resident

outside

(other

person

in

Nepal

In

the

names

In

the

names

Bhutan)
May be

of

two

or

of

two

or

jointly

NRIs

Rupee

Rupee Account Account

account

account

the

NRIs,

India

Joint

Forward

RBI/FEMA guidelines.

Currency

can

Rate).

Returns

are

Foreign

Who

booked

markets.

Particulars

(Forward

putting

currency

current

FCNR

to

in

the

the

:-

market

deal

booking

rate

advantage

prevailing

once

movements
The

also

Rupees

significantly
as

the

more

50

NRIs

residents

than

resident
and
held

with

NRI BANKING

Nomination

Permitted

Permitted

Permitted

Currency

Pound

Indian

Indian

which
is

in

Sterling,

account

US

Dollar, Jap.

denominated

Yen

or

Type

Dollar,

Canadian Dollar
Repatriable

of Account Term

Deposit

only

Repatriable

Non-repatriable*

Savings,

Savings,

Current,

Recurring,

Recurring,
Rate

of

Interest Subject

to

Deposit
cap: Rate of

LIBOR minus
25

basis

except
of

Rupees

Euro.

Australian
Repatriability

Rupees

in

on

case

will

Fixed

Fixed Deposit
interest Rate

domestic

points savings

Current,

on

of

interest

domestic

account savings

account

also

be

will

also

be

Japanese Yen applicable

to

applicable

to

where

the

cap

would

be

based account.

on

the

at

prevailing
rates

NRE

savings

Fixed

For

NRO

savings

account.

Deposits, Fixed

For

Deposits,

LIBOR the

rates

can

the

rates

can

be

fixed

by

be

fixed

by

banks
to

subject

ceilings

prescribed
51

banks
ceilings

by

subject

to

prescribed

NRI BANKING

RBI

Tax Aspects

Interest

income

by

Interest

tax

free

and

no tax

free

tax

deduction

at no

tax

source.

deduction
source.

RBI

income Interest
and

taxable
liable

at

income
and
for TDS

@30%

plus

applicable
surcharge
to

subject

conditions.

DTAA benefit
may

be

subject

available
to

fulfillment
conditions.

52

of

NRI BANKING

CHAPTER 5
RBI issues guidelines
for money transfer
scheme

MONEY TRANSFER
Money

can

be

telegraphically
completely
the

online,

customer

foreign

or
to

country

transferred
by

wire

paperless
send
to

either

transfer
money

money
India.

through
or

53

from
in

line

or

Cheques.

transfer

directly
Drafts

on

service
one

Indian

drafts

or

E-Transfer

is

which

enables

bank

account

in

rupees

can

be

NRI BANKING
purchased
the

branch

account.
to

from

exchange

of

another

Telegraphic

branch.

accounts

or

Cheques

and

companies

the

country

wire

can

of

where

transfers

be

Cheques

one

will

be

the

can

deposited

country

be

for

mailed

customer
made

credit

collected

and

of

has

through
the

to
the

branch

customers

and

credited

to

their

method

of

transferring

to

any

accounts.

International

SWIFT Transfer

This

secure,

is

quick

which

which

is

part

of

the

SWIFT

charge

of

Rs

500

for

each

your
UK

There

Barclays

is
NRI

you

no

to

efficient

funds,

account.

enables

and

charge

account

send

money

network.

SWIFT
when

in

easily

India
or

54

There

transfer
you
to

make
a

is

made
a

Barclays

bank

flat-rate

from

your

transfer

from

account

in

UAE.

NRI BANKING

Demand

(or Banker's)

Draft

This

of

initiating

You

can

is
named

intended

payee.
payee,

their

bank

then

receive

Demand

incur
Rs

means

who

will

transfer

send

then

following

the

be

from

your

Demand

able

to

presentation

of

payable

to

Rs

1,000

take

this

account

to

Draft

to

your

the

Draft

into

he/she

will

account

will

Draft,

payment.
Draft

charge

made

of

Rs

3.5

per

non-Barclays
sent

(minimum

charge

100).

A Demand
Foreign

UAE

Draft

currency

made

DD will

incur

to

Barclays account

flat-rate

charge

of

and
Rs

a
300.

EXCHANGE

PROVIDING

speed,

convenience

Xpress

Money

Service

be

modern

and

payable

of

reliable

UAE
way

and

security

Exchange
of

55

of

company

sending

and

transactions,
is

proving

receiving

the
to

money

NRI BANKING

from

anywhere

Indian
in

in

UAE

Oman,

world,

countries.

and

global

UK,

USA,

UAE

Exchange

globe

and

month.

the

Gulf

Qatar,

Exchange

in

Centre

enjoys
and

The

With

an

Fiji,

of

Australia,
and

Fund

status

Ltd

the

network

Lanka
in

uno

Services

amount

in

Sri

specializes

Financial

among

extensive

presence

numerous

average

especially

of

branches

India,

Kuwait,

Bangladesh,

Transfer

in

the

makes

the

across

the

industry.

80,000

remittances

immigrant

per

UAE

remittances
transfer

is

a
Rs

1,25,000.
Western

Union

Money Transfer

Western

Union

is

global

leader

in

with

history

of

pioneering

dating

back

more

than

now transfer

their

funds

to

Non-resident
the

Indians can

Money

Transfer

Service

service

is

currently

"Credits

to

NRE/FCNR

through

available

Money Transfer

accounts
Service

offered
for
are

money

by

inward
not

Scheme

transfer

Western

150

India

years.
through

Union.

remittances
permitted

services,

This

in

India.

be

routed

doorstep

within

to

(MTSS)"

SENDWISE:A

rupee

three

to

nationalized

demand

draft

four

working

bank

in

delivered
days

to
and

India.

56

the
can

recipients
be

encashed

at

any

NRI BANKING

MONEYGRAM
You

can

send

moneygram
is

the

money

online-usually

or

at

global
processor

of
by

in

in

the

world

more

than

to

be

within

agent

location

orders

providing

the

affordable,

170
fastest

near

way
Send

84,000

Not

to

We

only
youll

send

money

your
online

Moneygram

transfers

reliable

over

convenient,

you.

U.S.

to

countries.

and

minutes.

money

in

online

safe
one

arriving
international

money

today:-

moneygram

services

moneygram

leader

business

with

day

online

around

locations,

money

same

money

money

agent

sending

find

Send

is

and

the

help

people

largest
and

and

convenient

payment

India

offering

financial

services.

ICICI

Bank

ICICI
services
Accounts,
send

NRI

Bank,
to

the
Fixed

money

Money Transfer:the

NRI

leading
community

Deposit,

online

to

FCNR

bank

in

through

NRI

saving

deposits,

and

the

India.

57

account,

quickest

NRE

way

to

NRI BANKING

CHAPTER 6
NRI
INVESTMENTS

The

Government

respect

to

up

to

by

adopted

NRIs

and

through

Government

route,

i.e.,

through

NRIs

and

OCBs

real

estate

Board

equity

sectors.
lock-in

(FIPB)
in

Investment,

made

except

in

the

period

on

original

dividend

repatriation.

Various

investment

58

the

in

RBI
the
are

by

the
of

investment

India

with

India,

such

route

and

also

Investment

permitted

NRIs

real

policy,

Foreign

development

case

opportunities in

liberal

OCBs

both,

repatriable,

year

has

allowed,

100%

aviation
fully

are

the

Promotion

India

investment

investment
through

of

to

invest

activity

and

civil

and

OCBs,

are

estate,
and,

available

which
16%

to

has
cap

NRIs:-

a
on

NRI BANKING

If

one

to

is NRI,

the

following

investment

opportunities are

open

you:

Maintenance

of

Investment

in

bank

accounts

securities/shares

in

India.

and

deposits

of

Indian

firms/companies.
Investment

Investment

in

Policy

Recognizing

the

number

of

ongoing

basis

of

the

are

to

Annexure-III
units,

development

from

thereon
to
sick

etc,.

relaxations

announced
been

Non-resident

the
by

the

in

invest

high
under

of

priority
policy
revival,

housing

in

secondary

1998-99,

revised

59

are

upwards

100

also

from

percent
and

mentioned

and

investment

Some

percent

markets.

an

invested

100

Non-resident

capital

industries

NRIs/PIOs/OCBs
through

to
upto

1991,

on

companies.

available

to

Indians,

government

Indian

repatriation

industrial

investments
has

of

units

of

them

facility

in

the

(NRIs):-

presently

the

benefits

Indians

taken

schemes

companies,

NRI

India.

potential

attract

portfolio

individual

in

being

include

full

accruing

oriented

the

steps

with

income

make

investment

(NRIs)

equity

funds

for Non-resident

investment

Indians

the

mutual

in

export

real

estate

permitted

to

In

terms

of

limits

for

an

1%

to

5%,

NRI BANKING

aggregate
55

to

The
of

portfolio
10%

of

aggregate
FII

portfolio

order

well

in

has
from

help

the
and

scheme

of
of

his

any
of

this

to

with

tax

of

separate

can

tax

plan

from

the

company.

and

exclusive

Rulings

has

can

been

introduced

advance
a

fact

which

arise

ruling

in
or

rulings
arising

are

rulings

binding

non-resident

binding
or

expensive

could

affairs

and

for

obtain

which

law

Income-tax

drawn

obtain
of

their

long

liability.

the
certain

from
out

the

of

relevant

any

for

the

liability.

permitted

only

to

(convertible
or

made

branch

designate

increased

INVESTMENT

shares/debentures
is

capital

Authority

issues

transactions

are

companies,

1961.
tax-payer

question

transaction/proposed

NRIs/OCBs

NRIs

be

to

avoid

Act,

resident

on

PORTFOLIO

would

Advance

on

determination

designated

of

Authority

determination

all

limits.

to

The

the

Authority

by

paid-up

tax-payers

constituted.

categories

and

limit

investment

Income-Tax

been

limits

INVESTMENT:to

the

purchase

issued

advance

litigation,
under

the

investment

FOR NRIS
In

investment

of

and

without

through
an
one

make

branch

stock

benefit

exchange

dealer.

authorized

60

investment

non-convertible)

repatriation

authorized

portfolio

and

of

Indian

provided

the

also

through

are

required

NRIs/OCBs
by

in

Reserve

Bank

for

NRI BANKING

this

purpose.

NRIS

INTEREST:-

NRIs
the

invested

balance

that

the

being

Indian

trusted

mode

looking

for

manageable
of

India

India

only

5%

of

parked
banking

of

conventional

overseas.

A major

reason

associate

banks,

but

non

was

for

speed,

reasonable

could
and

assets

investment

risks,

based

investible

system

convenience,

he

their

not

the

NRI.

high

yield

costs

and

quality

with.

Competition

also

from

conventional

local

routes

India

with

this

was

very

preferred

and

The

customer

was

investment

with

on

in
for

services
was

not

face

only

from

banks

based

money

transfer.

of

overseas;

FACILITATION AGENCIES
The

main

matters
India

regulatory

related
(RBI),

to

for

Assistance

(SIA),

the

Chief

facilitation

NRIs/OCBs

Securities

Authority
of

and

Advance

and

investment
Exchange

Rulings

Ministry

Commissioner

agencies

of

are

Board

(AAR),

Reserve
of

Secretariat

Commerce

(Investments

involved

and
&

in

the

Bank

of

India

(SWBI),

for

Industrial

Industry;

and

Office

NRIs).

RBI FORMS
NRIs/OCBs/PIOs

do

not

have

to

61

seek

specific

permission

for

NRI BANKING

approved

activities

covered

activities

relating

to

schemes

either

RBI.

The

corresponding

TS

Transfer

require

activities
forms

are

under

General

NRIs/OCBs/PIOs
declaration
requiring

to

permission schemes.

not
RBI

covered
or

under

those

permission

from

Declaration/Permission

along

by

Non-residents

to

Residents

establish

branch

Overseas

Company

establishing

Overseas

Company

for

Project/Site

IPI

to

Office

Company/Individual

with

as under;

of Shares/Debentures

FNC Permission

The

in

office

in

India

Representative

Liaison Activities

to

62

acquiring

an

Office

by

open

India.

(declaration)

by

property

NRI BANKING

CHAPTER 7

NRI

Investment

In

Immovable Property In
India

NRIs,

irrespective

of

residential

as

transfer

agricultural
exchange
resi.houses)

land

and

equivalent

of

and

no

also

citizenship
commercial

plantation,
cost

of

restrictions

Rules

for Acquisition

Indian

citizen

Mode

of

Joint

&

their

with

citizen

/ Restrictions

63

by

and

barring

repatriation

of

foreign

(maxi.

in

NRIs being:

in

acquire
India

as regards holding

Payment

Holding

freely

properties

acquisition

& Transfer

Foreign

can

two

period.

case

of

NRI BANKING

Repatriation

Taxation

Rules

of

of

Sale

Proceeds

Capital

Gains

for Acquisition

& Wealth-Tax

& Transfer by

Foreign

Citizen

NRIs
Purchase

/ Acquisition:

There

is

property

(other

property) by
of

foreign

account

general

way

of purchase,

India,

Acquisition

by

General

A person
Aperson

way

Acquisition

than

way

foreign
by

land,

provided

remittance

way

property

is

immovable

plantation

or

farm-house

or

payment

any

NRO

Non

is made
Resident

out
bank

a/c..

India,

citizen

any

immovable

or

farmhouse

person

(donor)

who

India

(an

NRI

)who

is

or

of Indian

permission

acquire
plantation

inheritance

including

to

land,

from

outside

of

any

the

or

granted

agricultural

in

acquire

Gift:

of gift

resident

General
immovable

of

permission

resident
or

inward

to

i.e.NR(E),FCNR(B)

(other

property) by

citizen

agricultural

exchange

in

property

than

permission

is

Indian

origin.

:
granted

agricultural
64

is

land,

for

inheritance

plantation

or

of
farm-

NRI BANKING

house

property

from

A person

resident

in

A person

resident

outside

or

foreign

acquired
Foreign

citizen

said
1973

or

Agricultural

can

acquired

Transfer /
General
(other
a

person

in
in

may

be

origin

provided

accordance

with

force

land,
way

is

at

the

plantation
of

inheritance

granted

agricultural

who

residential

permission

property

to

an

Indian

such

time

or

citizen

person

had

the

provisions

of

of

acquisition.

i.e.

farmhouse

property

only.

granted

India,

in

A person

resident

outside

Transfer

of

by

gift

agricultural

any

plantation

or

immovable

farmhouse

property

property)

to

India.

is

of

of

or commercial

resident

citizen

sale

in

A person

foreign

for

land,

is resident

General

sale/

who

Sale:

Transfer of

or

India

Indian

Law

by

permission
than

or

FEMA 1999.

Hence
be

of

property

Exchange

FERA,

India,

to

land,

gift

by

residential

way
or

of

gift:

commercial

or

India

Indian

property

who

may

be

an

Indian

citizen

origin,
plantation

65

or

farmhouse

property

NRI BANKING

General
a

permission

person

who

of

The

payment
be

a) Non

c) Non

It

for

or

and

also

NRI's

of

immovable

bank

account,

External Account

(NRE);

Currency

Resident

is

sell

India

purchase

from

Resident

d) Foreign

in

to

gift

such

an

property

Indian

to

citizen.

Payment :-

made

b) Foreign

granted

is resident

Mode

to

is

Non

Resident

advisable

Inward

to

retain

(NRO),

(FCNR)

required

(B),

or

or

Remittance

from

records

payment

of

is

being:

(B) Account

Ordinary Account

Exchange

properties

abroad.
made

i.e.

bankers

certificate
All
etc.

incidental
should

Repatriation
An

NRI

Indian

also

of

be

Sale

is

such

paid

as

through

stamp
bank

duty,

registration

fees

only.

proceeds

being

origin

immovable

expenses

an

Indian

allowed

property

subject

to

citizen
repatriate

to

the
66

or

the

following

foreign
sale

citizen

proceeds

conditions:

of

of
an

NRI BANKING

a) .

the

acquisition

Foreign
b) the

Exchange

purchase

Remittance
c) in

should

case

price

or

maximum

two

06-02.[

vide

It

be

repatriation
The

of

FERA,

out

of

properties,

with

73

the

or

Foreign

account,

existing

FEMA 99).
Exchange

Inward

and

repatriation

is

restricted

to

years

noted
sale

be

no

noted

for

that

the

repatriation

FEMA 65/2002

that
proceeds

there

are

vis-a-vis

eligibility

criteria

of

is

removed

w.e.f.

29-

RB

dated

no

29-06-02.]4

restrictions

number

of

as

commercial

re:
or

properties.

amount

equivalent
allowed

met

may

notification

may

industrial

of

(i.e.

accordance

properties.

It
period

in

FCNR (B )

residential

of

holding

Laws
was

NRE

of

be

of

of
to

be

the

repatriation

is

purchase

price

repatriated.

67

restricted
i.e.

to

profits

foreign
/

gains

exchange
are

not

NRI BANKING

CHAPTER 8
PAN Card for NRIs

For
the

all

Income

financial

Indian

Tax

Act,

transactions

Permanent Account
The

Permanent

alphanumeric
Department
the

task

of

Limited

from TIN

liable

or

are

required

India,

issued

managing

Depository

are

it

Number

entrusted

has

who

is

to

pay
to

mandatory

tax

under

enter
to

into

have

of

10

Number.

Account

department
cards

1961,

in

numbers
has

citizens

an

by

UTI
IT

office
(NSDL)

Facilitation

(PAN)
the

Investor

PAN
in

centers.
68

combination
Tax

Services

been

The

Department.

Ltd.

Centers

country.

also

Income

Service

the

has

is

(UTIISL)

wherever
National

engaged

to

the

The
with
IT

Securities
allot

PAN

NRI BANKING

Applying
Form

for a

49A,

PAN

which

downloaded

from

is the
the

application

Income Tax,

www.incometaxindia.gov.in
The

forms

and

TIN

been

care

provided
the

priority

in

applicant

The
Apart

lifetime

enable
The

the

PAN

as

online

payment

IT

tatkal

speedy

days

PAN,

can

be

NDSL websites:

is

against

PAN

or

Service

priority

allotment

of

allotted

through

the

normal

through

service

has

PAN

card

the

15

credit

Centers

e-mail

days
card.

on

to

the

The

PAN

validity.

necessity
from

for a

to

returns

submit

the

and

of

connection

PAN Card

income

purchase

purchase

to

UTIISL and

at

Centers.

Internet.

upon

mandatory
the

for,

for

www.utiisl.co.intin.nsdl.com

available

Facilitation

through

has

also

&

form

or

which
PAN

sale

vehicles,

to

of

in

must

carry

all

financial

property

foreign

making

NRIs

time

in

visits,

the

PAN,

in

like

payments

for

India,
a

is

transactions,

securing

deposits

it

bank

telephone

worth

over

Rs.50,000.
For
India,

NRIs,
invest

PAN
in

The

application

recent

the
a

is

stocks,
for

colored

application
proof

necessary

PAN

conduct

pay

tax

must

be

photograph

form
of

and

to

of

on

monetary
their

Indian

accompanied

size

3.5

transactions

cms

in

income.

by:
x

2.5

cms

on

.
residence

and
69

identity

(attested

school

NRI BANKING

leaving/matriculation

certificate/degree/credit

identity/ration/passport/driving
certificate
code

of

obtainable

card/voter

license/telephone/electricity

bill/employer

.
the
from

concerned
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DEMAT ACCOUNT :-

70

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CONCLUSION
NRI

Banking

today

for

banks. With

and

business
exchange
are

very
no

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bank

reserves

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up

money. Further
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for

their
with

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prospects

stands

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as

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afford

to

strategies

banking

in

pushing

success

banking

ignore

its developing
India

the

NRI

of

NRI

is one

today. India

order
for

to

attract

business

populations
hot

needs

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this

foreign

this,

banks

NRI

Capital Account

Pravasi

has never

80

profitable

Bharatiya

been

so

Diwas,

good

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today.

NRI BANKING

PRIMARY DATA QUESTIONARIES

VISITED

ICICI BANK ANDGERI BRANCH

MET MR.

ANNEXURE

Can

I break

my

I am visiting

to

open

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any

KALPESH DHANJI MOTA

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If

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:-

deposit
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81

to

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cheques

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operate

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FINDINGS
Yes.deposits
interest

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payable

& SUGGESTIONS
be

broken

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before
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82

the

applicable

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interest

period
rate

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5,000

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amount

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debit

as

Service
levied.For

refer

the

to

this,

year

from

applicable

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Bibliography

Website
www. Google.com
www.icici.com
www.google.com
www.wikipedia.com

Books/Journal
Nri

Banking

Articles

in

Newspapers

85

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Libraries
College

referred
library

86