National Toll Free No1800 425 00 000
 
National Toll Free No1800 425 00 000

NRE [Non-Resident[External] Rupee Account)

NRE [Non-Resident[External] Rupee Account)

  • 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.
  • Non-Resident Indians can appoint Residents to operate their NRE accounts for local payments through a power of attorney/letter of authority.
  • Withdrawals for local payments or payments abroad in any convertible currency are allowed without Reserve Bank of India’s approval.
  • Standing instructions can be undertaken for periodic payments of insurance premia, school fees, etc.
  • Interest is compounded every quarter for term deposit accounts.
  • The maturity proceeds of deposits as well as interest are freely repatriable at the prevailing rate of exchange.
  • 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.
  • Nomination facility is available.

  Tax Benefits

  • Interest on the deposit is free of Indian Income Tax.
  • Balances held in the account as well as interest accrued on the deposit are exempt from Wealth Tax in India.

Use of NRE/FCNR accounts is obligatory for channelising funds for all repatriable investments in India (including investments in shares and securities).