Last Updated on 02/03/2022
Nri

I) FOREIGN CURRENCY (NON RESIDENT) ACCOUNTS

Foreign Currency (Non Resident) (FCNR) accounts can be opened by non resident Indian and persons of Indian origin.

The accounts can be opened as Term Deposits in the following currencies:

1. US Dollar (USD)

2. Great Britain Pound (GBP)

3. EURO (EUR)

4. Japanese Yen (JPY)

5. Canadian Dollar (CAD)

6. Australian Dollar (AUD)

7. Singapore Dollars (SGD)

8. New Zealand Dollar (NZD)

9. Swiss Franc (CHF)


The period of deposit will be 1 year to 5 years. Interest will be paid on maturity, in the same currency of the deposit. For deposits of tenure up to one year simple interest will be paid and for deposits of tenure beyond one year the interest will be compounded at half yearly rests. The maturity proceeds inclusive of interest is fully repatriable.

Current Interest Rates Details

Minimum amount of deposit shall be: 1000 unit of Foreign currency for all except Japanese yen for which it is 100000 unit.

Premature Closure is allowed. However the interest payable in such cases will be one percent below the rate applicable for the period the deposit has run. 

No interest
 is allowed on a deposit if closed prematurely before completion of one year. Swap charges will be levied for premature closure of large deposits. 

Loans against the security of FCNR accounts can be extended to the account holder/ third party in India, without any limits, subject to the usual margin requirements.

FCNR Accounts are Opened Only at Designated Branches.

II) NON RESIDENT EXTERNAL (NRE) ACCOUNTS

  • NRE Accounts are Indian rupee denominated accounts that can be maintained as Savings, Current or Term Deposit.
  • Accounts can be maintained individually or jointly with other NRI/PIO with Former or survivor clause.
  • Credits to NRE accounts can be by way of remittance from abroad in permitted currencies, or by transfer from other NRE/FCNR accounts.
  • The entire balance in the account is fully repatriable.
  • Loan facility is available against the security of NRE Term deposits.
  • Interest income is free from income tax
  • Premature closure of deposit is permitted subject to conditions
  • Operation in the account allowed by duly executed power of attorney or mandate for local payments.
  • Nomination facility available. Nominee can be a resident Indian.

III) NON RESIDENT ORDINARY(NRO) ACCOUNT

  • NRIs and PIO can maintain NRO account for bonafide local banking transactions denominated in Rupees, not involving any violation of the provisions of FEMA and rules and regulations made thereunder.

(Note: Opening of accounts by individuals/entities of Bangladesh / Pakistan nationality / ownership requires prior approval of Reserve Bank of India)

  • When a resident Indian becomes non resident, the existing account in India will be designated as NRO account.
  • The accounts can be in the form of savings, current or term deposits.
  • Joint account with other NRI(s)/PIO or close resident relative is permitted with Former or survivor clause.
  • Remittances from abroad and legitimate dues in India of the account holder can be credited to the account.
  • Interest income is subject to income tax.

The following debits are permitted in the account

(i) All local payments in rupees including payments for investments in India subject to compliance with the relevant regulations made by the Reserve Bank. 

(ii) Remittance outside India of current income like rent, dividend, pension, interest, etc. in India of the account holder. 

(iii) Remittance up to USD One million, per financial year (April-March), for all bonafide purposes, to the satisfaction of the bank.

IV- RESIDENT FOREIGN CURRENCY (RFC) ACCOUNT

A Resident Foreign Currency account in India can be maintained by a Non-resident Indian who has returned home for permanent settlement, after staying abroad for a minimum period of one year. An RFC account can be opened without any regulatory approval from the Reserve Bank of India.

RFC accounts can be maintained in USD/EUR/GBP/JPY/AUD/CAD in the form of Savings / Term Deposit.

Credits to the account can be in any of the following means:

  • Balances standing to the credit of NRE and FCNR accounts at the time of return
    Income from overseas assets or sales proceeds from overseas assets
    Entire amount of pension received from abroad
  • Balance in the account can be remitted abroad for bonafide purposes either for yourself or your dependants.
  • If you decide to go abroad again you can transfer your funds to NRE/FCNR account(s)
    Interest earned on RFC account is subject to tax.