9911796707
TMI BlogNon-Resident (External) Rupee Account Scheme – NRE AccountX X X X Extracts X X X X X X X X Extracts X X X X ..... orm, e.g. savings, current, recurring or fixed deposit account etc. 3. Permitted Credits: a) Proceeds of remittances to India in any permitted currency. b) Proceeds of personal cheques drawn by the account holder on his foreign currency account and of travellers cheques, bank drafts payable in any permitted currency including instruments expressed in Indian rupees for which reimbursement will be received in foreign currency, deposited by the account holder in person during his temporary visit to India, provided the authorised dealer/ bank is satisfied that the account holder is still resident outside India, the travellers' cheques/ drafts are standing/ endorsed in the name of the account holder and in the case of travellers' cheques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l property, together with interest, if any (net of income tax payable thereon), provided the original payment was made out of NRE/ FCNR(B) account of the account holder or remittance from outside India through banking channels and the authorised dealer is satisfied about the genuineness of the transaction. j) Any other credit if covered under general or special permission granted by Reserve Bank. 4. Permitted Debits: a) Local disbursements. b) Remittances outside India. c) Transfer to NRE/ FCNR (B) accounts of the account holder or any other person eligible to maintain such account. d) Investment in shares/ securities/ commercial paper of an Indian company or for purchase of immovable property in India provided such investment/ purchase is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a against the collateral of fixed deposits held in NRE account subject to the following conditions: i) The loan should be utilised for personal purposes or for carrying on business activities except for the purpose of relending or carrying on agricultural/ plantation activities or for investment in real estate business. ii) There should be no direct or indirect foreign exchange consideration for the non-resident depositor agreeing to pledge his deposits to enable the resident individual/ firm/ company to obtain such facilities. iii) The usual norms and considerations as applicable in the case of advances to trade/ industry shall be applicable to such credit facilities. 1 [(3) Loans outside India - Authorised dealers may allow their branches ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g in the NRE account of the deceased account holder to his non-resident nominee. 9. Miscellaneous: (a) Joint accounts Joint accounts may be permitted to be opened in the following cases: i) In the names of two or more NRIs and/or PIOs ii) With resident relative(s) on former or survivor basis. However, the said resident relative shall be eligible to operate the account as a Power of Attorney holder in accordance with the extant instructions during the life time of the account holder. Explanation For the purpose of this regulation, relative means relative as defined in section 2(77) of the Companies Act, 2013. b) Opening of account during temporary visit: An account may be opened in the name of an eligible NRI or PIO during his temporary visi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gement allow for a period of not more than two weeks, over-drawings in NRE savings bank accounts, up to a limit of ₹ 50,000 subject to the condition that such over-drawings together with the interest payable thereon are cleared/ repaid within the said period of two weeks, out of inward remittances through banking channels or by transfer of funds from other NRE/ FCNR(B) accounts. f) Remittances abroad by Resident nominee: Application from a resident nominee for remittance of funds outside India for meeting the liabilities, if any, of the deceased account holder or for similar other purposes, should be forwarded to the Reserve Bank for consideration. g) Tax Exemption: Income from interest on balances standing to the credit of NRE Accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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