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SCHEDULE 5 - Regulation 5(1)(v) - Non-resident (Special) Rupee (NRSR) Account Scheme - Foreign Exchange Management (Deposit) Regulations, 2000Extract SCHEDULE 5 [See Regulation 5(1)(v)] Non-resident (Special) Rupee (NRSR) Account Scheme 1. Eligibility : (i) NRIs (other than nationals of Bangladesh/Pakistan) who voluntarily undertake not to seek remittance of funds held in these accounts as also income earned thereon are eligible to maintain NRSR accounts with an authorised dealer. (ii) These accounts shall carry the same facilities and restrictions as are applicable to domestic accounts of residents in respect of repatriation of funds held in the account and/or income accrued thereon with an exception of investment in shares/securities or immovable property or agricultural/plantation activities or real estate business in India which shall be governed by the regulations applicable to such investments by non-residents. (iii) The directives issued by Reserve Bank in regard to domestic accounts shall be applicable to these accounts. 1 (iv) No account under NRSR Account Scheme shall be opened on and from 1st April 2002, whether by renewal of existing deposit or otherwise. 2. Application Form : For the purpose of opening of these accounts, an application shall be submitted to an authorised dealer in Form NRSR appended to this Schedule. 3. Type of accounts : These accounts may be maintained in the form of current, savings, recurring or fixed deposit account. 4. Joint accounts : These accounts may be held jointly with residents. 5. Rate of interest : The interest rates as applicable to resident accounts shall apply to these accounts. 6. Change of resident status of the account holder : When a person resident in India becomes a person resident outside India (other than Nepal and Bhutan) on account of his taking up employment, or carrying on business or vocation outside India or for any other purpose indicating his intention to stay outside India permanently or for an uncertain period, the person concerned will have the option of designating his existing domestic account as NRO account or NRSR account. 7. Nomination facility : An authorised dealer may register nomination in favour of either a resident or a non-resident. However, a non-resident nominee will not be entitled to any remittance facility out of funds held in NRSR account of the deceased account holder or income/interest accrued thereon. 8. Overdrafts in NRSR account: Authorised dealer/authorised bank may permit overdraft in the account of the account holder subject to his/its commercial judgement. 9. Miscellaneous : (i) The operations on these accounts may be allowed freely as in the case of domestic accounts maintained by resident individuals. (ii) The account holders are also permitted to freely transfer funds from NRO/NRE/FCNR accounts to NRSR accounts but not vice versa. ************************ Note : 1. Has been added vide Notification No. 052/2002 dated 1/3/200 2 NRSR Application-cum-Undertaking form for opening of Non-Resident (Special) Rupee (NRSR) Account Photograph/s of the accountholder/s To. .. .. (Name and address of bank) Dear Sir, Opening of Non-Resident (Special) Rupee Account *I/We request you to open a Non-resident (Special) Rupee account with your branch. *I/We request you to convert our existing resident account no .. with your branch to a Non-resident (Special) Rupee account. My/Our particulars are given below: Name/s Address/es Nationality I/We undertake to abide by the regulations framed for Non-Resident (Special) Rupee accounts. Undertaking I/We ,(name/s) ., undertake that : I /We will not make available to any person resident in India any foreign exchange against reimbursement in India in rupees or otherwise. I /We will ensure that investment is shares /securities or immovable property in India out of funds held in my/our NRSR account with you are governed by respective regulations of Reserve Bank of India. I/We voluntarily undertake that I/We and/or my/our heir/successor will not seek repatriation of funds held in my/our NRSR a/c with you and /or any income/interest earned thereon at any time. Place (Signature/s) Date Name/s Address/es
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