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Eligibility
The following are allowed to open EEFC account:
Types of Accounts
Savings Account ;
Current Account;
Recurring Deposit (RD) Account; or
Fixed Deposit (FD) Account.
Opening of Account
An 100% EOU or a Unit in EPZ / STP / EHTP can utilise upto 100% and any other
person resident in India can utilise upto 50% of the specified amounts to open the
account.
Permissible credits
Permissible debits
payment outside India towards a permitted current and capital account transactions;
payment in foreign exchange towards cost of goods purchased from a 100% EOU or a
Unit in EPZ or STP or EHTP;
payment of applicable customs duty;
trade related loans/advances, not exceeding US $ 3 million to importer customer outside
India.
payment in foreign exchange to person resident in India for supply of goods / services
including payments for air fare and hotel expenditure.
Rate of Interest
The banks will determine the rates of interest after considering the rates prevailing in the
international markets.
It is beneficial to ascertain the best of the rates offered by various banks before investing
with any particular Bank.
Click Here for Interest Rates offered by various Banks and an analysis of the same.
Loans in foreign exchange may be granted to the account holders against security of
funds held in the accounts.
Cheque books
Authorized dealer may issue cheque books of separate series with the superscription
"EEFC Account" to the account holders maintaining such accounts.
For any information regarding the Exchange Earner’s Foreign Currency (EEFC) Account
Scheme, please visit the FAQ section
2. What are the limits prescribed by Reserve Bank to keep the balances received by way
of inward foreign remittances in EEFC accounts?
Ans. An 100% EOU or a Unit in EPZ / STP / EHTP can utilise upto 70% and any other
person resident in India can utilise upto 50% of the specified amounts by way of inward
remittances to open the account.
Ans. Big exporters who are permitted to open foreign currency accounts abroad by
Reserve Bank are not eligible to open EEFC accounts.
Ans. EEFC account can be maintained in any convertible foreign currency and in any
form i.e., current, savings or term deposit accounts. However, saving bank accounts is
permitted only in the names of individuals.
6. Whether credit facilities are available against the security of EEFC deposits?
Ans. Credit facilities are available in India as well abroad against the security of EEFC
deposits.
payment outside India towards a permitted current and capital account transactions;
payment in foreign exchange towards cost of goods purchased from a 100% EOU or a
Unit in EPZ or STP or EHTP;
payment of applicable customs duty;
trade related loans/advances, not exceeding US $ 3 million to importer customer outside
India.
payment in foreign exchange to person resident in India for supply of goods / services
including payments for air fare and hotel expenditure.
Eligibility
Savings Bank Accounts can also be maintained in Indian Post Offices and can be
operated in a manner similar to NRO A/c.
Types of Accounts
Savings Account ;
Current Account;
Recurring Deposit (RD) Account; or
Fixed Deposit (FD) Account.
Opening of Account
NRO A/c can only be opened and maintained in Indian Rupees (INR).
The account holder should furnish an undertaking at the time of opening of the Account
that the credits and debits relating to investments and disinvestments shall be in
accordance with RBI regulations.
Permitted Credits
Interest payable on NRO A/c will be at the same rates as on resident accounts. These rates
vary from time to time as per directions issued by Reserve Bank of India.
It is beneficial to ascertain the best of the rates offered by various banks before investing
with any particular Bank.
Click Here for Interest Rates offered by various Banks and an analysis of the same.
Loans / Overdrafts are granted to the account holder against security of fixed deposits for:
Personal purposes or for carrying on business activities.
Loans cannot be used for:
re-lending;
carrying on agricultural / plantation activities; or
investment in real estate business.
Loans / Overdrafts are also granted to third parties resident in India:
Conditions to be fulfilled:
Loan should be utilised for personal purposes or for carrying on business activities.
The existing accounts of a person resident in India going abroad and gaining non-resident
status are automatically designated as Ordinary Non-Resident Accounts (NRO A/c).
In case of loans or overdraft facilities availed by a person resident in India, and who
subsequently becomes a person resident outside India, payment of interests and
repayment of loan may be made by inward remittance or out of legitimate resources in
India of the account holder.
Nomination / Cancellation
Funds lying in the NRO Account on the death of an account holder can be credited to the
NRO account of his non-resident nominee.
Joint Accounts
Tax Liability
Interest earned on balances in NRO A/c is subject to Indian Income Tax and is deducted
at source. Interest earned is repatriable fully from 1996 onwards. The principal amount is
entirely non-repatriable.
For any information regarding the Non -Resident Ordinary Rupee Account Scheme
(NRO A/c), please visit the FAQ section.
FAQ –
Ans. NRO accounts are treated on par with resident accounts. They can be
maintained either in the form of current / savings account or fixed deposit.
3. Whether NRO account can be opened jointly with any resident?
Ans. Yes. NRO account can be opened jointly with any resident.
Ans. Pakistani / Bangladeshi individuals / entities can open banks accounts in India
only with specific approval of Reserve Bank.
Ans. Only the following credits are allowed into these accounts:
i. funds held in NRO accounts of the lender should be his own funds and
not borrowed funds.
Eligibility
Types of Accounts
Accounts can be:
1. Savings Account ;
2. Current Account;
3. Recurring Deposit (RD) Account; or
4. Fixed Deposit (FD) Account.
Permitted Credits
The following are the credits allowed into the Account:
1. Proceeds of remittances to India in any permitted currency;
2. 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. The traveller's cheques / drafts should be in the name of
the account holder or endorsed in his favour;
3. Proceeds of foreign currency notes / bank notes tendered by account holder
and the same is declared on a Currency Declaration Form (CDF);
4. Transfer from NRE / FCNR Accounts;
5. Interest accruing on the funds held in the account;
6. Interest on Government securities and dividend on units of mutual funds. The
securities / units should be purchased out of funds in NRE / FCNR Account or
out of inward remittance of foreign exchange;
7. Maturity / Sale proceeds of the following:
a. Government securities; or
b. Units of Mutual Funds.
Permitted Debits
1. Local disbursements;
2. Remittances outside India;
3. Transfer to NRE / FCNR Account of the account holder or of any other person
eligible to maintain such account;
4. Investment in shares / securities / commercial paper of an Indian Company or
for purchase of immovable property in India. The RBI should have permitted
the investment / purchase; and
5. Any other debit if covered under general or special permission granted by
Reserve Bank of India (RBI).
Rate of Interest
The rates of interest offered by various Banks in India differ.
It is beneficial to ascertain the best of the rates offered by various banks before
investing with any particular Bank.
Click Here for Interest Rates offered by various Banks and an analysis of the same.
Loans against balances held in the account
A. Loans are granted to the account holder for:
a. re-lending;
b. carrying on agricultural / plantation activities; or
c. investment in real estate business.
Conditions to be fulfilled:
a. re-lending;
b. carrying on agricultural / plantation activities; or
c. investment in real estate business.
C. The account holder for taking loans outside India can also show these
deposits as security.
Banks allow temporary overdrawings on the NRE Savings Bank Accounts. The
overdrawings have to be repaid within two weeks out of:
a. inward remittances; or
b. by transfer of funds from other NRE / FCNR Account.
Nomination / Cancellation
Nomination can be in favour of residents or non-residents.
Funds lying in the NRE Account on the death of an account holder can be repatriated
to his non-resident nominee.
For remittance of funds by resident nominee outside India for meeting the liabilities
of the deceased account holder or for similar other purposes, RBI approval is
required.
Joint Accounts
Two or more non-resident individuals can open Joint Account, provided they are
Persons of Indian Nationality or Origin. However, Opening of these accounts by a
non-resident jointly with a resident is not permissible.
Operations by Power of Attorney (POA) Holder
POA Holder can make withdrawals from the account only for local payments. The
POA Holder is permitted to operate the Account to make investments on behalf of the
account holder.
However, the POA Holder is not allowed:
Cheque Books
Special series of cheques are issued to the account holders by banks for easy
identification and quicker processing.
Tax Liability
Income from interest on balances standing to the credit of NRE Accounts is exempt
from Income Tax. Balances held in such accounts are exempt from Wealth Tax.
For any information regarding the Non -Resident (External) Rupee Account Scheme
(NRE A/c), please visit the FAQ section
FAQ –
Ans. The following are permitted to open and maintain these accounts:
1. Savings Account ;
2. Current Account;
3. Recurring Deposit (RD) Account; or
4. Fixed Deposit (FD) Account.
a. Government securities; or
b. Units of Mutual Funds.
1. Local disbursements;
2. Remittances outside India;
3. Transfer to NRE / FCNR Account of the account holder or of any other person
eligible to maintain such account;
4. Investment in shares / securities / commercial paper of an Indian Company or
for purchase of immovable property in India. The RBI should have permitted
the investment / purchase; and
5. Any other debit if covered under general or special permission granted by
Reserve Bank of India (RBI).
15. Can funds be transferred from one NRE account to another NRE account?
Ans. Funds can be freely transferred from one account to another account.
16. Are loans / overdrafts granted to account holders against security of
fixed deposits in NRE account?
Ans. Loans / Overdrafts are granted to non-resident account holders on the security
of fixed deposit held by them in NRE account. However, loans / overdrafts against
NRE deposits in India for the purpose of investments are not allowed. The loans
cannot be used for the purpose of re-lending, carrying on agricultural / plantation
activities or for investments in real estate business.
Repayment will have to be made either by adjustment of the deposit or by fresh
remittances in foreign exchange from abroad. The loan can also be repaid out of local
rupee resources held in the NRO account of the borrower subject to the condition
that the loan repaid from local resources would be charged interest at commercial
rate as in force from time to time.
17. Whether resident individuals / firms / companies in India can avail of
loans against fixed deposits held in NRE accounts of non-residents?
Ans. Loans are also granted to third parties resident in India subject to the following
conditions:
a. re-lending;
b. carrying on agricultural / plantation activities; or
c. investment in real estate business.
Eligibility
• US Dollar
• Pound Sterling;
• Deutsche Mark;
• Japanese Yen;
• Euro; or
• Any other currency as may be designated by RBI.
Remittances received in Indian Rupees for opening these accounts shall be converted
into the designated foreign currencies at the prevailing T.T. Selling Rate.
Permitted Credits
The following are the credits allowed into the Account:
a. Government securities; or
b. Units of Mutual Funds.
1. Local disbursements;
2. Remittances outside India;
3. Transfer to FCNR / NRE Account of the account holder or of any other person
eligible to maintain such account;
4. Investment in shares / securities / commercial paper of an Indian Company or
for purchase of immovable property in India. The RBI should have permitted
the investment / purchase; and
5. Any other debit if covered under general or special permission granted by
Reserve Bank of India (RBI).
For the purpose of payment in rupees, funds held in these accounts shall be
converted into Indian Rupees at the prevailing T.T. Buying Rate.
Movement of funds will be free of inland exchange or commission.
Rate of Interest
The rates of interest offered by various Banks in India differ.
It is beneficial to ascertain the best of the rates offered by various banks before
investing with any particular Bank.
Click Here for Interest Rates offered by various Banks and an analysis of the same.
a. re-lending;
b. carrying on agricultural / plantation activities; or
c. investment in real estate business.
Conditions to be fulfilled:
C. The account holder for taking loans outside India can also show these
deposits as security.
Temporary Overdrawings
Banks allow temporary overdrawings on the NRE Savings Bank Accounts. The
overdrawings have to be repaid within two weeks out of:
a. inward remittances; or
b. by transfer of funds from other FCNR / NRE Account.
Tax Liability
Income from interest on FCNR Deposit Account is exempt from Income Tax. Deposit
amount in such accounts is exempt from Wealth Tax.
Premature withdrawal of the Deposit
Premature withdrawal of FCNR Deposits for the purpose of opening of NRNR Rupee
Deposit Account with an authorised dealer other than the one with whom the FCNR
Deposit Account is maintained will attract penalty.
For any information regarding the Foreign Currency (Non -Resident) Account (Bank)
Scheme (FCNR-B A/c), please visit the FAQ section
FAQ’s
Ans. Since money market in India is volatile and every day exchange fluctuations
take place, the non-residents not sure where the Indian rupee stands against other
foreign currencies. To avoid these exchange rate fluctuations in their normal trade,
the non-residents are allowed to open FCNR accounts.
Ans. Non-Resident Indians (NRIs) and Overseas Corporate Bodies (OCBs) are
allowed to open and maintain FCNR accounts in India.
Eligibility
A person resident in India may open, hold and maintain a Resident Foreign Currency
Account.
Opening of Account
Any eligible person may open an account in any foreign currency by submitting
application in the prescribed form.
The following documents will also be required attached to the application form:
Rate of Interest
The rates of interest offered by various Banks in India differ.
It is beneficial to ascertain the best of the rates offered by various banks before
investing with any particular Bank.
Click Here for Interest Rates offered by various Banks and an analysis of the same.
FAQ
Ans. The account can be opened and maintained by non-resident Indians, who come
back to India for permanent settlement. The account can be opened and maintained
by non-resident Indians, who come back to India for permanent settlement.
Ans. All the persons who have been resident outside India for a continuous period of
not less than one year can open RFC account. To arrive at the period of continuous
stay abroad of not less than one year, short visits to India on personal grounds like
meeting family members / relatives or on health grounds which do not indicate the
person's intention to stay in India for an indefinite period may be ignored.
Ans. RFC account can be opened in the form of current, savings and fixed deposit.
Ans. Only eligible returning Indians can jointly open the RFC account.
8. Whether funds lying in the RFC account can be utilised outside India?
Ans. The funds in the RFC account can be freely utilised by the account holder for
any bonafide remittance outside India through normal banking channels. The funds
can be utilised for making investments abroad provided the cost of such investments
and / or any subsequent payments required therefor are met out of RFC account.
QA22 Accounts:
Eligibility
Types of Account
a. Current Account
b. Saving Account
c. Fixed Deposit
Opening of Account
1. An undertaking in form QA 22 duly signed by all the persons who are authorised
to operate on the accounts has to be submitted to the authorised dealer.
2. Fresh declarations should be made in the event of any addition to the list of
persons authorised to operate on the accounts.
3. Form QA 22 need not be completed when accounts are to be opened in the names
of:
a. Foreign Embassies
b. Consulates
c. Legations
d. Trade Representations
e. Foreign Government estabilishments in India
United Nations Organisation and its subsidiary/affiliate bodies in India or their
f.
officials in India
g. Foreign nationals of non-Indian origin permanently resident in India
h. Foreign nationals of Indian origin (other than those who are residing in India
for employment of specified duration irrespective of the length thereof or for a
specific job or assignement, the duration of which does not exceed three years)
and
Foreign-born wives of Indian nationals and of persons of Indian origin resident
i.
in India.
1. It is illegal for account holders to provide any foreign exchange to other residents
through their non-resident associates against reimbursement provided locally.
RBI permission has to be obtained when doing such activities.
a. Securing Accommodation
b. Reimbursement of vehicle insurance claims
c. Loan repayment by the employees to the QA 22 account of the Indian
branches/offices of foreign companies; when the original payment was made
by debit to concerned QA 22 account.
1. Applications in form LOV 2 have to made for obtaining loans against balances
held in the account.
1. When the account holder becomes a non-resident, the account may be converted
in the Ordinary Non-resident Rupee account (NRO).
Joint Accounts
FAQ
1. What is QA 22 account?
Ans. The QA 22 accounts are resident accounts opened by foreign companies and
foreign nationals in India.
2. What is QA 22 undertaking?
The Resurgent India Bond (RIB) scheme was launched by State Bank of India on 5th
August 1998 for NRIs, OCBs and Banks acting in fiduciary capacity on behalf of
NRIs/OCBs. The scheme was closed on 4th September 1998. The funds raised from
the RIB scheme is being utilised mainly for the development of the infrastructure
sector, which is priority sector of India.
Interest Rates
Payment of Interest
Mode of Payment
Maturity of RIBs
-The maturity of RIBs is when the term of investment ends and proceeds are paid
out.
-Tenure for RIBs - 5 years from the date of issue.
-The amount (principle + interest) will be payable in USD/GBP/DEM as per the case.
-It is paid on expiry of 5 years term from the date of allotment.
-The first payment can be made only after six months from the date of allotment.
Procedure
-The RIBs will be repaid in India on the due date (the next working day if the due
date is a holiday) by issuance of Repayment Warrants.
-The warrants will be payable outside India if the payment is made in USD/GBP/DEM.
The Repayment Application Form should be submitted atleast 60 days prior to the
due date of maturity to:
Premature Withdrawal
i) The premature encashment is permitted only after six months from the date of
allotment.
Joint Holdings
Procedure
The addition of joint holders is permitted with payment instructions to the 'Former or
Survivor'.
Click here to view the Application format of request for adding joint
holder
Gifts/Transfers of RIBs
-It can be gifted to any Charitable Trust in India recognized under the Income Tax
Act 1961 by
1. NRIs (except minors)
2. OCBs
3. Banks acting in a fiduciary capacity on behalf of NRIs/OCBs.
-The request for transfer or gift should be submitted to SBI, NRI Branch, Mumbai
atleast 90 days before the date of maturity.
Click here to view the Application format of request for recording Gift /
Transfer
-In case of premature encashment of the RIBs in non-repatriable Indian rupees the
holder / donee / survivor will be free from any tax in India.
-In USA/UK/Germany the interest earned on RIBs and sale or gift of the RIBs are as
per the taxation laws of the respective countries.
-The loans and advances are permitted to the holders and third parties against
collateral of the bonds in non-repatriable Indian rupees from authorized dealers in
India.
-The banks in India advance upto 90% of invested amount as a loan at their
discretion either in Indian rupees or in foreign currency with the prior approval of
RBI.
-The interest rate charged on these loans is at the discretion of the bank from which
loan is acquired.
We provide further assistance, in case you would like to transfer RIBs to some other
individual