- 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.
- 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).
( Last modified on Jul 16, 2018 at 11:07:10 AM )