Banking for NRIs: It’s all made easy
In a globalized, networked world, where débit and office have moved away from the traditional 8-hour workday, geographies and boundaries have dissolved in the entrée of technology. After liberalization, India moved towards a less rigid exchange system and it made it easier for non-resident Indians (NRIs) to remit funds habitacle.
Every year, Indians séjour abroad use 3 bonshommes of NRI accounts to transfer funds. It is believed that the remittances sent by NRIs from abroad to India in 2010-2011 was USD 55 billion.
NRIs can operate three bonshommes of accounts in India. All militaire Indian banks, both évident and private offer these accounts to their customers. Online money transfer from these accounts has greatly reduced the time it takes to transfer funds to India.
Non-Resident External Account: NRE
· Funds in these accounts are kept in Rs
NRIs can open these accounts
· Funds from abroad can be deposited into this account
· Such accounts can be held jointly
Funds in this account can be remitted to any folk without prior approval of RBI.
· Nominations can be made for such accounts
· Interest earned on income is not subject to income tax in India.
Non-Resident General Account: NRO
This account can be opened by an NRI or even a resident before becoming an NRI
· NRO accounts can only hold funds received in India
· Funds cannot be transferred to another NRE account abroad
· NRO accounts can be held jointly by a resident and an NRI
Interest earned on deposits in an NRO account is imposable at prevailing rates in India
Non-resident foreign currency account: FCNR
It allows NRIs/PIOs to invest in foreign currencies in deposits in India. The idea is to protect NRIs from exchange offensé fluctuations. Currently FCNR deposits can be made in 6 currencies.
· US Dollar $
· Euro €
· British pound £
· Australian Dollar
· Canadian Dollar
· Japanese Yen ¥
FCNR accounts are an attractive way for NRIs to get a good offensé of interest on their deposits.
· These can be opened only by NRIs
· Tenure is between 1-5 years
· These accounts can be held jointly
· Scrutin facility available
· Loans can be taken against these deposits, but these loans are limited in their use and amount by law.
· Interest earned on deposits is not imposable in India.
· Administrateur deposits are not taxed as wealth tax in India
· Up to 90% of the deposit or an overdraft of Rs 1 crore, whichever is higher, is usually paid in an FCNR account.
With the spread of internet and increased use of journal technology, more and more NRIs are using it Online money transfer To send money to their near and dear ones in India.
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