..                                           Savings Bank Accounts

Repatriable NRE (Non Resident External) Savings Bank Accounts

• Running accounts - Frequent credits and withdrawals allowed [ can also be opened as Current Account]
• Maintained in Indian Rupees
• Cheque book facilities
• Current income of NRIs such as rent, dividend, interest, pension etc net of applicable taxes can be credited to this account.
• Can be opened with drafts, travelers cheques/currencies issued from abroad. Drafts issued in approved foreign currencies can also be converted into Indian Rupees.
• Balance can be repatriated abroad.
• Nomination Facilities available. Nominee can be resident or non-resident
• Eligible for tax concessions. Interest earned exempt from Income Tax
• Can be opened jointly with another Non-Resident Indian
• Can be operated by a resident, duly authorised by the NRI Account Holder

Non-Repatriable NRO (Non Resident Ordinary) Account 

• When an existing resident goes abroad, his resident Savings Bank Accounts are to be termed as Non resident (Ordinary) Savings Bank Accounts.
• Balance in the account can be repatriated upto US Dollars 1 million per calendar year for any purpose. This includes sales proceeds of immovable property  credited to NRO accounts subject to payment of applicable Taxes.
• Interest earned is subject to deduction of Income Tax at source.
• The NRI's local funds generated in India can be credited to these accounts.
• Interest earned in NRO A/C repatriable
• Nomination Facilities available
• Joint account with a resident permitted
• Operation by resident [Power of Attorney holder permitted]

..

Fixed Deposits

Repatriable NRE Fixed Deposits

NRE Rupee fixed deposits can be opened with the option of interest being payable once in a quarter or compounded at quarterly periods and payable along with principal on maturity. The minimum period for which an NRE term deposit can be opened is 12 months and the maximum period is 60 months.

These deposits can be

Ordinary Term Deposits   - Interest amount can be credited to the depositor's account or an account of his choice, normally once in a quarter. Monthly interest payment permissible conditionally. 
or
Special Term Deposits - Interest earned on the deposits is added to the principal and compounded at quarterly intervals. The principal amount together with interest is repaid on maturity of the deposit.

No interest is payable if the deposit is prematurely closed before the minimum period of 12 months.

Premature closure attracts penalty of 1% 

Loans can be granted against these deposits subject to a maximum of Rs.20lakh as per RBI Guidelines

NRE Thrift deposits

• Fixed sums can be depoited every month for a fixed period
• Deposits maintained in Indian Rupees on repatriable basis
• Compound interest at same rates as applicable to other term deposits
• Periods from 12 months to 60 monthhs
• Eligible for tax concessions

NRE Super surplus scheme

Same as above but monthly deposit amounts can be varied according to availability of funds, subject to a minimum of core amount.

Non Resident Ordinary Term Deposits (NRO)

• When an existing resident goes abroad, his resident fixed deposits are to be termed as Non Resident (Ordinary) Term deposits
• New accounts can also be opened.
• The NRI's local funds generated in India can be credited to these accounts.
• Periodicity from 15 days to 10 years
• Balance in the account can be repatriated upto US Dollars 1 million per calendar year for any purpose. This includes sales proceeds of immovable property credited to NRO accounts which has been held by the NRI.
• Earn Interest at domestic deposit rates
• Interest earned is subject to deduction of Income Tax at source.
• Interest earned in NRO A/C repatriable
• Nomination Facilities available
• Can be held jointly with a resident
  
  Click here for NRO Interest rates

 

Accounts in Foreign Currency..

FCNR Account

• Accounts can be opened in six major currencies viz., US Dollar, Pound Sterling, Japanese Yen, Euro, Australian Dollar and Canadian Dollar.
• Accounts are opened for periods ranging between 12 months and five years. Interest is compounded on half yearly basis under the reinvestment plan if opened for 366 days or more.
• On maturity, payment shall be made in foreign currency/Indian rupees, as desired by the depositor.
• Affords protection against fluctuation in Exchange rates.
• Interest is payable at half yearly intervals only.
• Interest can be compounded under the reinvestment plan.
• Interest rates offered are higher than the interest rates for these currencies for the same maturities in international markets.
• These deposits are repatriable.
• Nomination Facilities available
• Eligible for tax concessions
• Repatriation of maturity proceeds to 3rd party outside India permitted subject to conditions

..

Resident Foreign Currency Account (RFC)

• Facility for returning Indians.
• To maintain outside earnings in convertible foreign exchange.
• All NRIs who had been resident outside India for a continuous period for 1 year eligible
• Funds in NRE/FCNR, foreign exchange brought in the form of remittances, travelers cheques, foreign currency from abroad may be credited into RFC account.
• Maintained in US$ in Savings Bank / Current account or Term Deposit of 6/36 months duration
• Interest payable in US$ - can be drawn in India rupees on conversion
• Can be held jointly with other eligible residents
• No cheque book issued for RFC(SB) account/Current Account
• Pension or other monetary benefits including interest / dividend on assets held abroad can be credited into RFC.
• Remittance abroad for bonafide purposes can be effected from RFC.
• RFC can be converted into NRE or FCNR if the account holder goes abroad again and attains NRI status.

For more information please contact any of our branch where you maintain NRE A/c.    or
Chief Manager (NRI), State Bank of Travancore , Head Office, Poojapura, Trivandrum - 695 012.

E-mail : cmnri@sbt.co.in