Skip to main content

Bank accounts for NRIs in India

 

Some bank accounts a NRI can open here

 


   Anon-resident Indian (NRI) means a person who is not a resident in India. Under the Foreign Exchange Management Act (FEMA), a person 'resident in India' includes a person residing here for more than 182 days during the course of the preceding financial year.


   A NRI is a person who has gone abroad or who stays abroad on employment, to carry on a business, or for any other purpose for an uncertain period. A NRI is a citizen of India or a person of Indian origin (PIO). A PIO is a citizen of any country who has held an Indian passport, either of his parents or grandparents was a citizen of India, or    the person is a spouse of an Indian citizen.


   Those who have gone abroad for medical treatment or holiday continue to maintain their resident status.


   NRIs have the option to maintain accounts not only in rupees but also in foreign currencies with authorised dealers. There are various types of accounts that can be opened and operated in India.

Non-resident external rupee account    

This account can be in the form of savings, current, recurring or fixed deposits. In case of a non-resident external rupee account (NRE), the funds are easily repatriable. The account holder is permitted without any restrictions to send money outside India from this account.


   One can hold this account jointly with another NRI. One can also grant a power of attorney to residents to operate this account.

Non-resident non-repatriable rupee deposit account    

A non-resident non-repatriable rupee deposit account (NRNR) can be opened by transferring foreign currency funds from abroad, or from other NRE or foreign currency nonresident account (FCNR) accounts. Renewable deposits for a period of six months to three years can be opened. The money is non-repatriable .This account can be jointly held with a resident.

Resident foreign currency account    

A resident foreign currency account (RFC) can be opened and maintained by any resident. A RFC account can be opened out of foreign exchange received as pension, any superannuation, or other monetary benefits from an employer outside India. It can be opened with money realised on conversion of assets owned by him when he was a nonresident, with money received, or funds acquired as gift or inheritance from a person resident outside India.

Non-resident (ordinary) rupee account    

A non-resident (ordinary) rupee account (NRO) can be opened with funds either remitted from abroad or generated in India. If one earns rent, dividends, or other forms of income in India, he can open this account to credit the proceeds. It is a non-repatriable account.


   This account can be in the form of savings, current or term deposits. The account can be opened jointly with any close relative in India.

Foreign currency non-resident account    

This account can be opened with funds remitted from outside India, or by transfer of funds from existing FCNR or NRE accounts. A foreign currency non-resident account (FCNR) can be opened by NRIs as term deposits in US dollars, sterling pounds, deutsche marks or Japanese yen. Remittances received in rupees to open a NRE or FCNR account will be converted into the designated foreign currencies at the prevailing rate.


   In order to prove a NRI status, the account holder needs to produce his passport with a valid visa, stamping of date of entry and exit from India on the passport, proof of overseas employment and signed photograph.

 


Popular posts from this blog

Mutual Fund Review: Taurus Tax Shield

    Taurus Tax Shield has seen a turnaround in performance since 2007, but still remains a volatile offering… The fund has seen a turnaround in its performance since 2007 and has delivered impressively during market rallies since then. The portfolio is also more diversified. It contained its downfall to an average level in 2008 but is still one of the most volatile offerings in this category. Bold investors can look at this fund.   Strategy The fund manager invests across the market capitalisation and sectors. The selection of stocks is made on the basis of long-term business prospects and value creation. Fund Insight Launched in March 1996, the fund was a laggard with just two annual outperformances. Concentrated stock bets and high exposure to mid and small caps led to it being hit harder during market downturns. The number of stocks in the portfolio never exceeded 20 and it was not rare to see the top 5 holdings account for around 60 per cent of the portfolio. After b...

NRIs and direct taxes code (DTC)

DTC Proposes To Do Away With Special Provision That Allows NRIs Liberalised Duration Of Stay In Country      THE new direct taxes code could bring a large number of global Indians under the tax net, as it does away with a provision that allowed individuals to escape tax in any country citing double tax avoidance.    The new legislation, introduced in Parliament on Monday, says an individual shall be a resident of India in any financial year if he is in the country for more than 59 days in that year, and has been has been India for more 365 days in four preceding financial years. A number of Indian industrialists including Vedanta's Anil Agarwal and Essar's Ravi Ruia have acquired non-resident status over the years.    The DTC has only attempted to clean up the provision in line with the laws globally. A phrase "being outside India" in the existing income tax law exempted individuals who stay outside the country for six months from paying taxes. This was prone ...

Stick to Good Fund Manager who Can Multiply Your Investment

A manager may be the difference between the best and worst funds. Here's how you can find the right one    Does a mutual fund manager make a difference to your investment? The answer may not be as easy as you think, since most best-performing mutual funds have moved away from individualistic fund management to process-driven methods, limiting the scope of an individual's role in investment decisions. In fact, many fund managers would speak at length about how the "system" their fund house has in place makes their task of picking stocks easy even though it restricts their freedom. Still, the question is important, especially after recent reports that the Securities and Exchange Board of India ( Sebi ) may ask fund managers to disclose to investors their track record of managing money. Let us take a look at the universe of large-cap funds over the past five years. According to Value Research, an independent mutual fund tracking firm, the topper in the category is DSP...

AXIS Long Term Equity Fund - The Best Tax Saver Fund for 2016

  AXIS Long Term Equity Fund - Invest Online   History:   The open ended mutual fund was launched on December 21 in the year 2009. It is benchmarked against BSE 200 and managed by the fund manager JINESH GOPANI. Initially the scheme was called as Axis tax saver fund but later it was renamed as Axis long term equity fund with effect from September 2, 2011. Nature of investment: As far as asset allocation is concerned, 97.52% of the stocks are equity and 0.02% is debt based. The primary focus of the fund is to invest in diversified equity stocks that have higher growth potential. Total asset size of the fund is in the tune of 4,996 CRORE as of June 30, 2015. Performance: The performance of the fund for one year, 3 years and 5 years are 23.6%, 29.9% and 19.1 respectively which are far greater than 6.4%, 14% and 5.6% benchmark figures. It has also preformed fairly well against SBI magnum Tax Gain (G) and HDFC tax saver (G). The growth comparison is enumerated below;                        ...

IDFC Classic Equity Fund

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   IDFC Classic Equity Fund IDFC Classic Equity is a large-cap equity fund which currently has assets under management worth Rs. 158.52 crore. It was launched in August 2005. The fund is benchmarked against the BSE-200 Index. Performance YTD 1-Year 3-Year 5-Year Since Inception IDFC Classic Equity 0.93 26.61 6.30 1.01 11.65 BSE 200 1.52 17.31 6.00 1.99 12.98 All figures in % as on January 31, 2013; Returns above one-year in CAGR terms ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now