| 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 Pakistan nationality / ownership, entities of Bangladesh2 ownership and erstwhile Overseas Corporate Bodies5 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) all current income and ii) up to USD 1 (one) million per financial year (April-March), by A NRI/ PIO.
|
| 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.
|
From one to three years, However, banks are allowed to accept NRE deposits above three years from their Asset-Liability point of view
|
As applicable to resident accounts.
|
| Rate of Interest |
With effect from March 1, 2014 (i)deposits of 1 year to less than 3 year maturity, interest shall be paid within the ceiling rate of LIBOR/ SWAP rates plus 200 basis points; (ii) deposits of 3-5 years maturity, interest shall be paid within the ceiling rate of LIBOR/ SWAP rates plus 300 basis points
On floating rate deposits, interest shall be paid within the ceiling of SWAP rates for the respective currency /maturity plus 200 bps/ 300 bps as the case may be. For floating rate deposits, the interest reset period shall be six months.
|
With effect from March 1, 2014, interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits.
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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.
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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 to the NRI/ PIO account holder is subject to the ceiling of USD 1 (one) million per financial year.
|
| Loans |
|
|
|
| a. In India |
|
|
|
| i) to the Account holder |
Permitted without any ceiling subject to usual margin requirements.
|
Permitted without any ceiling subject to usual margin requirements
|
Permitted subject to the extant rules3
|
| ii) to Third Parties |
Permitted without any ceiling subject to usual margin requirements. |
Permitted without any ceiling subject to usual margin requirements. |
Permitted, subject to conditions4 |
| b. Abroad |
|
|
|
i) to the Account
holder |
Permitted without any ceiling subject to usual margin requirement |
Permitted without any ceiling subject to usual margin requirement |
Not Permitted |
| ii) to Third Parties |
Permitted without any ceiling subject to usual margin requirements.
|
Permitted without any ceiling subject to usual margin requirements.
|
Not Permitted
|
| c. Foreign Currency Loans in India |
|
|
|
| i) to the Account holder |
Permitted without any ceiling subject to usual margin requirements.
|
Permitted without any ceiling subject to usual margin requirements.
|
Not Permitted
|
ii) to Third
Parties |
Permitted without any ceiling subject to usual margin requirements |
Permitted without any ceiling subject to usual margin requirements |
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.
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| * The loans cannot be utilised for the purpose of on-lending or for carrying on agriculture or plantation activities or for investment in real estate business. |
