Eligibility
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NRE accounts can be opened by NRIs. |
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Joint account is permitted with another NRI. |
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Opening of NRE accounts jointly with residents is prohibited. |
Currency of account
NRE accounts are maintained in Indian Rupee.
Type of account
NRE accounts can be opened as savings, current, recurring or term deposit.
Power packed products
Our patrons can have various categories of products according to their choice, like: Fed NRI Power, Fed NRI Premium, Fed NRI Privilege.
Opening of account
Account can be opened by filing the application form duly filled up along with photocopy of relevant pages of the passport and a passport size photograph. For downloading the account opening form (click here) . The initial remittance for opening can be made by transfer from another NRE account of the prospective account holder or by remittance from abroad through banking channel or by tendering foreign currency notes/travellers cheque if the account is opened while on temporary visit to India.
Permissible credits to account.
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Foreign Currency Remittance from abroad in the form of TT, MT, DD, Personal cheque etc. The draft should be in the name of the account holder and not endorsed in his favour. The cheque should be drawn by the account holder on a foreign currency accounts maintained by him abroad. |
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Proceeds of Indian Rupee drafts issued by Banks/Exchange Houses abroad. |
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Proceeds of foreign currency notes/travellers cheques tendered by the account holder in person during his visit to India . If the value of foreign currency notes exceed US$ 5000 or its equivalent and if the value of travellers cheque and currency notes together exceeds USD 10000 or its equivalent it should be supported by currency declaration form issued by customs authorities. |
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Interest/dividend/maturity proceeds of investment made in India on repatriation basis. |
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Refund of subscription to shares/securities where original payment is made by remittance from abroad or by debit to account holders NRE a/c. |
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Transfer from NRE account of same person or another NRI. |
Withdrawals
Withdrawals from NRE accounts are permitted for the following purpose.
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Local disbursements. |
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Repatriation outside India in any form. However, repatriation in the form of travellers cheque/currency notes will be allowed for travel purpose only. Maximum value of currency note per person will be USD 2000 or its equivalent. |
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Investment in shares/securities/immovable properties other than for engaging in agriculture and plantation activities/real estates business). |
Operation by Power of Attorney.
NRE accounts can be operated by resident attorneys for withdrawal for local payments and investment in shares and securities covered by the general or specific permission of Reserve Bank of India.
Power of Attorney holders are not permitted to open NRI accounts or repatriate out side India funds held in the accounts. They are also not authenticated to makes gifts from NRE accounts.
Term Deposits
Minimum period of NRE term deposit is 1 Year and maximum 10 years. In the case of cash certificate, interest accrued on quarterly basis will be added to the principal (reinvestment plan). Premature withdrawal of deposit is permitted. However the rate of interest payable in such cases is, applicable rate of interest at the time of opening the deposit for the period for which the deposit remained with the bank less one percent. No interest will be paid on deposits which has not run the minimum period of 12 months. For NRE Term deposits opened on or after 17 July 2003, penalty clause as mentioned above is not applicable.
Advance against deposits
Advance will be granted upto 90% of the deposit, with a maximum of s. 100L. Loan can be repaid by remittance from abroad, transfer from NRE/FCNR/NRO account of the borrower or liquidation of the deposit.
Repatriability
Deposit made and interest accrued thereon can be repatriated outside India at any time.
Tax benefits
Interest accrued on NRE accounts are exempt from Indian Income Tax Act as far as the NRI is resident outside India. No wealth tax payable for the amount outstanding in NRE accounts.
Current accounts
NRIs can opt for Current account also under NRE schemes.