Tabassum Uzma Shaik, banker...
Mise à jour il y a 121w
Non-resident ordinary rupee account(NRO) and Non-resident external rupee account(NRE) : These are the accounts maintained by NRI/PIO in India. They are in the form of current/savings/FD/RD accounts.
NRIs maintain these acs to save their earnings from abroad or India in the form of INR.
Tourists during their short visit to India, open these account s for their purchases and payments in the form of Indian rupee.
The interest rates and all are same as domestic accounts.
Lakshmi Kumari, works at Retired Bank Manager (2018-present)
Répondu il y a 122w
1.NRE Accounts can be opened by a Non Resident Indian or a person of Indian Origin. The credits to such accounts are by way of inward remittace,FC,FDD etc.,They can also be opened jointly with residents on "former or survivor "basis. The advantage of NRE account is the amount so deposited is fully repatriable.
2.NRO Accounts also can be opened in the name NRI/PIO to deposit in Indian rupees. These may be by way of rental income,any dividends for investments when he/she was a resident. The balance in such accounts can be REPATRIATED
subject to payment of tax up to USD 1 MILLION DOLLARS per financial year.
Nachiketa Kumar, Helping people save time and money at RemitFinder
Répondu il y a 109w · L'auteur dispose de réponses 70 et de vues de réponses 50.2k
Both NRE and NRO accounts are the type of accounts that NRI’s can open in Indian banks. There are many differences between them but I think there are two very important differences when considering which account to open.
- Both the principal and interest earned in an NRE account are fully repatriable i.e. the money can be transferred back to the country where the NRE resides.
- Taxes for NRE accounts are payable in the country where the NRE is a resident whereas in case of NRO accounts taxes are payable in India.
A more detailed analysis of their differences is available on this blog - Non Resident Indian Accounts - NRE vs NRO vs FCNR Bank Accounts
It depends on the requirement of the individual concerned that which type of account will suit him best.
Ddj Naidu, Retired Senior Manager of a Public Sector Bank in India
Répondu il y a 122w
Non-Resident (External) Rupee Account Scheme – (NRE Account):
Non-resident Indians (NRIs) and Person of Indian Origin (PIOs) are permitted to open and maintain these accounts with authorised dealers and with banks (including cooperative banks) authorised by the Reserve Bank to maintain such accounts.
The accounts may be maintained in any form, e.g. savings, current, recurring or fixed deposit account etc.
Joint accounts can be opened by two or more NRIs and/or PIOs or by an NRI/PIO with a resident relative(s) on ‘former or survivor’ basis. However, during the life time of the NRI/PIO account holder, the resident relative can operate the account only as a Power of Attorney holder.
Inward remittances to the account and remittances outside India from NRE account are permitted.
Credits permitted to this account as inward remittance are interest accruing on the account, interest on investment, transfer from other NRE/ FCNR(B) accounts, maturity proceeds if such investments were made from this account or through inward remittance.
The debits allowed from this account are local disbursements, transfer to other NRE/ FCNR(B) and investments in India.
Current income like rent, dividend, pension, interest etc. will be construed as a permissible credit to the NRE account provided the Authorised Dealer is satisfied that the credit represents current income of the NRI/PIO account holder and income tax thereon has been deducted/ paid/ provided for, as the case may be.
In the event of the demise of an account holder, balances in the account can be transferred to the non-resident nominee of the deceased account holder. However, request 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.
Operations on an NRE account may be allowed in terms of Power of Attorney or other authority granted in favour of a resident by the non-resident account holder, provided such operations are restricted to withdrawals for local payments or remittance to the account holder himself through banking channels. In cases where the account holder or a bank designated by him is eligible to make investments in India, the Power of Attorney holder may be permitted to operate the account to facilitate such investment. The resident Power of Attorney holder is not allowed to (a) open a NRE account; (b) repatriate outside India funds held in the account other than to the account holder himself; (c) make payment by way of gift to a resident on behalf of the account holder; (d) transfer funds from the account to another NRE account.
Income from interest on balances standing to the credit of NRE Accounts is exempt from Income Tax. Likewise balances held in such accounts are exempt from wealth tax.
The rate of interest and tenor applicable to these accounts will be in accordance with the directions/ instructions issued by the Department of Banking Regulations, Reserve Bank of India.
Non-Resident (Ordinary) Account Scheme – NRO account
The salient features of the scheme are given below:
Any person resident outside India (as per Section 2 (w) of FEMA), may open and maintain NRO account with an Authorised Dealer or an Authorised Bank for the purpose of putting through bona fide transactions denominated in Indian Rupees.
Post Offices in India may maintain savings bank accounts in the names of persons resident outside India and allow operations on these accounts subject to the same terms and conditions as are applicable to NRO accounts maintained with an authorised dealer/ authorised bank.
NRO (current/ savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India. The balance in the NRO account may be paid to the account holder at the time of his departure from India provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than interest accrued thereon.
Opening of accounts by individuals/ entities of Pakistan nationality/ ownership and entities of Bangladesh ownership requires prior approval of the Reserve Bank. However, individuals of Bangladesh nationality may be allowed to open these accounts subject to the individual/ s holding a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned.
The accounts may be maintained in any form, e.g. savings, current, recurring or fixed deposit account.
The accounts may be held jointly with residents on ‘former of survivor’ basis. NRIs and PIOs may hold an NRO account jointly with other NRIs and PIOs.
Inward remittances from outside India, legitimate dues in India and transfers from other NRO accounts are permissible credits to NRO account. Rupee gift/ loan made by a resident to a NRI/PIO relative within the limits prescribed under the Liberalised Remittance Scheme may be credited to the latter’s NRO account.
The account can be debited for the purpose of local payments,transfers to other NRO accounts or remittance of current income abroad. Apart from these, balances in the NRO account cannot be repatriated abroad except by NRIs and PIOs up to USD 1 million, subject to conditions specified in Foreign Exchange Management (Remittance of Assets) Regulations,
. Funds can be transferred to NRE account within this USD 1 Million facility.
Loans against the deposits can be granted in India to the account holder or third party subject to usual norms and margin requirement. The loan amount shall not be used for relending, carrying on agricultural/plantation activities or investment in real estate.
NRO accounts may be designated as resident accounts on the return of the account holder to India for any purpose indicating his intention to stay in India for an uncertain period. Likewise, when a resident Indian becomes a person resident outside India, his existing resident account should be designated as NRO account.
Powers have been delegated to the Authorized Dealers/ Authorised banks to allow operations on an NRO account in terms of a Power of Attorney granted in favour of a resident by the non-resident individual account holder provided such operations are restricted to local payments and remittances to non-residents.
To facilitate the foreign nationals to collect their pending dues in India, AD Category-I banks may permit such foreign nationals to re-designate their resident account maintained in India as NRO account on leaving the country after their employment to enable them to receive their pending bona fide dues, subject to the bank satisfying itself that the credit of amounts are bona fide dues of the account holder when she/ he was a resident in India. The funds credited to the NRO account should be repatriated abroad immediately, subject to payment of the applicable income tax and other taxes in India. The amount repatriated abroad should not exceed USD one million per financial year. The debit to the account should be only for the purpose of repatriation to the account holder’s account maintained abroad. The account should be closed immediately after all the dues have been received and repatriated as per the declaration made by the account holder when the account was designated as an NRO account.
International Credit Cards - Authorised Dealer banks have been permitted to issue International Credit Cards to NRIs/PIOs, without prior approval of Reserve Bank. Such transactions may be settled by inward remittance or out of balances held in the cardholder’s FCNR (B) / NRE / NRO Accounts.
Income-Tax - The remittances (net of applicable taxes) will be allowed to be made by the Authorised Dealer banks on production of requisite information in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India from time to time. Reserve Bank of India will not issue any instructions under FEMA, clarifying tax issues. It shall be mandatory on the part of Authorised Dealers to comply with the requirement of tax laws, as applicable.