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NRI: ACCOUNTS
AND DEPOSITS
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What are the kinds of bank accounts
an NRI can hold in India?
As per FEMA Notification No.5/2000-RB, dated 3rd
May 2000, an NRI can have a 'Rupee Account' and/or a 'Foreign Currency Account'
in India as described below:
- NRE SB account in Indian Rupees
- NRE Fixed Deposits in Indian Rupees
- FCNR Deposits in US$, £, Euro, Can$ AUD and
Jap Yen
- Non-Resident Ordinary Account in Indian
Rupees
5. I want to know the latest interest rates:
Please visit
Interest Rates
6.The difference between NRE and NRO
accounts?
Balances held in NRE accounts can be repatriated
abroad, whereas funds in NRO account are not generally repatriable. Repatriation
of balances held in NRO accounts is allowed subject to certain conditions. Funds
remitted from abroad or local funds which can otherwise be remitted abroad to
the account holder can be credited to NRE accounts. Funds due to the
non-resident account holder which do not qualify, under the Exchange Control
regulations, for remittance outside India are required to be credited to NRO
accounts. The interest income earned on NRO attracts income tax deduction at
source.
7.How do I open an NRI account if I am
outside India?
If you want to open the account when you are
outside India:
- You may visit our website www.onlinesbi.com/nri
- Fill the application form and get it
attested by an SBI official or at the Indian consulate. You can have the
application form notarized locally.
- Submit the application form with a copy of
your passport and initial remittance to a branch of your convenience in
India. Alternatively, you could also hand over these documents to an SBI
branch nearby, if one is available. You need to specify instructions to open
an account in India at the branch of your choice.
In case of any query, please write to us along with
the SBI branch in India/place where you propose to open the a/c.
8. Can an NRI transfer funds between NRE
accounts?
Yes. The funds can be transferred between NRE or
FCNR accounts of an account holder and also between NRE or FCNR accounts of two
different NRIs, i.e., the funds lying in NRE or FCNR accounts of an NRI can be
freely transferred to NRE or FCNR account of any other NRI.
9.Can you transfer funds from an NRE to
an NRO account and vice versa?
It’s easy to transfer funds from an NRE to an NRO
account. But it’s not possible to transfer funds from an NRO account to an NRE
account. Once you transfer funds from an NRE to an NRO account, the amount is
non-repatriable. Consequently, you cannot transfer it back.
10.What amounts can be credited to NRO
accounts?
- Proceeds of remittances from outside India
through normal banking channels received in foreign currency which is freely
convertible
- Any foreign currency, which is freely
convertible, tendered by the account holder during his temporary visit to
India. Foreign Currency exceeding USD 5000 or its equivalent in the form of
cash should be supported by currency declaration form. Rupee funds should be
supported by encashment certificate, if they represent funds brought from
outside India.
- Transfers from rupee accounts of
non-resident banks
- Legitimate dues in India of the account
holder. This includes current income like rent, dividend, pension, interest,
etc.
- Sale proceeds of assets including immovable
property acquired out of rupee / foreign currency funds or by way of legacy
/ inheritance.
11.Are NRO or NRE account holders
eligible for loans or overdrafts against their fixed deposits?
Yes. except for the purpose of re-lending ,
carrying on agricultural/plantation activities or for investment in real estate
business.
Loans against NRE fixed deposits can, however, be utilized for investments in
India on non-repatriation basis, in certain specified areas and for acquisition
of flats/houses subject to prescribed conditions
12.What is a Resident Foreign Currency
Account Scheme?
The Resident Foreign Currency Account facilitates
investment of funds for those individuals who have returned to India for
permanent settlement (Returning Indians) and attained a residential status of
RNOR.
13. Are NRIs permitted to remit funds
through Exchange Houses for investment in shares or debentures of Indian
companies?
Subject to general or specific permission from the
Reserve Bank of India NRIs are permitted to remit funds through Exchange Houses
for their investment in shares or debentures.
14.What is the tenure for the various
deposits that you offer?
| |
NRE |
NRO |
FCNR |
RFC |
Time Period
for TDR/STDR |
Min: 1year |
Min:15 Days |
Min: 1 year |
Min: 1 year |
| Max:5 years |
Max:10 years |
Max:5 years |
Max:3 years |
| |
15.Can I convert my Resident Account to
NRO account?
Yes. You can convert your Resident Account to NRO
Account.According to FEMA guidelines, when an individual changes his residential
status from 'Resident' to 'Non-Resident', he must re-designate his resident
account as an NRO (Non-Resident Ordinary) account. Along with the NRO account
you can open NRE account.To re-designate your Resident account, download the
account opening form from www.onlinesbi.com/nri fill
and submit along with the relevant documents to the branch of your choice in
India.
16. Is nomination facility available?
Yes. Nomination facility is available on NRE / FCNB
accounts. The account holder needs to fill in the requisite form DA1 which forms
a part of NRI account opening form. You may also download nomination form and
send it to your branch for them to record the same.
17. Can I open a joint
account?
| Type of Account |
Joint Account with Resident Indians |
Joint Account with Non-Resident Indians |
| NRO |
Yes |
Yes |
| NRE |
No |
Yes |
| FCNR |
No |
Yes |
| |
18.Are funds in NRE/FCNR accounts
repatriable?
All amounts in the various NRE / FCNR deposits
accounts are fully repatriable.
19.Under liberalised norms, how much
money can an NRI remit abroad annually from his NRO accounts?
He can remit up to US$ 1 million (or equivalent)
per calendar year on production of an undertaking and certificate
20.Is any prior permission from RBI
required?
No, however, NRIs who are citizens of Pakistan,
Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal & Bhutan are not allowed
to repatriate assets without prior permission from RBI.
21.What are the tax
concessions available to NRIs on balances or deposits held in NRE or FCNR
accounts?
The income from interest on moneys standing to the
credit of NRE or FCNR accounts is exempt from Income Tax. Gifts from such
accounts are not liable to Gift Tax as the Gift Tax is abolished w.e.f.
30/9/1998. Similar tax concessions however are not available for NRO accounts.
22.Can any person in India be
authorised to operate the NRI's account?
Yes, you can either use a letter of authority or
give a Power of Attorney. The letter of authority must be duly completed with
the signature of the person who is authorized to operate the account. The same
must be attested and handed over at the branch when the account is opened
23.Are Power of Attorney Holders
allowed to credit proceeds of foreign currency notes, bank notes and travellers
cheques to the NRE accounts?
Power of Attorney Holders are not allowed to credit
proceeds of foreign currency notes, bank notes and travellers cheques to the NRE
accounts.
24. Is interest income on RFC deposits
taxable?
Interest income on RFC deposits is taxable when the
NRI loses RNOR (resident not ordinarily resident) status and becomes an ordinary
resident.
25. Are the balances in NRE or FCNR
account permitted to be credited to RFC account? Is the NRI required to satisfy
any minimum period of NRI status for the above purpose? How long is the NRI
permitted to maintain RFC account once he becomes a resident?
The balances in NRE or FCNR account can be credited
to RFC Account on the change of the status of the NRE or FCNR Account holder
from a Non-Resident to a Resident. Under the current FEMA regulations the
Non-Resident Indian is not required to satisfy a minimum period of stay of one
year.
A person can maintain an RFC Account, once he
becomes a resident for any length of time as long as he remains to be a
resident. If his status changes once again from Resident to Non-Resident, the
funds held in RFC account are allowed to be freely remitted abroad or credited
to fresh NRE or FCNR account. However the current regulation under FEMA is
silent about the above provision.
The treatment of deducting tax at source on
interest on RFC Account is similar to Domestic Term Deposits. However it is
possible for a person, whose status under the Income Tax Provision is Resident
but not Ordinarily Resident to claim that the interest on Term deposits is not
liable to tax under the provisions of Section 10 of the Income Tax Act, 1961.
The individual should furnish Form 15AA if he does not require the bank to
deduct tax at source.
26.I want to give / cancel the standing
Instructions?
You may write to your branch or Please log on your
onlinesbi account. Under Standing Instructions you may give or cancel the
standing Instructions.
27.How can I request for a New Cheque
Book?
You can request for a cheque book online. Cheque
book can be requested for any of your Savings, Current and Over Draft accounts.
You can opt for cheque books with 25, 50 or 100 cheque leaves. You can either
collect it from branch or request your branch to send it by post or courier. You
can opt to get the cheque book delivered at your registered address or you can
provide an alternate address. Cheque books will be dispatched within 3 working
days from the date of request.
Just log on to retail section of the Internet
Banking site with your credentials and select the Cheque Book link under
Requests tab. You can view all your transaction accounts. Select the account for
which you require a cheque book; enter the number of cheque leaves required and
the mode of delivery. Then, submit the same.
28.Can a person employed in Bhutan or
Nepal open NRE/FCNR accounts or Fixed Deposits in foreign currency?
No. Persons resident in Bhutan and Nepal cannot
normally open NRE accounts/FCNR deposits except where the funds to these
accounts are remitted in free foreign exchange.
Interest earned on these accounts can be
remitted only in Indian Rupees to NRIs/ PIOs in Nepal & Bhutan.
29.Can fixed deposits be closed
prematurely?
NRE & FCNR fixed deposits with the bank can be
closed prematurely. No interest is payable if the deposit is not kept with the
bank for a minimum period of one year. If the deposit is kept for over one year,
interest will be paid at the rate applicable for the period for which it has run
less a penalty of 1%.
30.Will the penalty be waived if the
deposit is closed for redeployment in another scheme of the Bank?
No penalty is levied if the deposit is closed
prematurely for redeployment in another scheme of our Bank
31.Can an FCNR deposit in one currency
be converted to a deposit in another currency?
Yes. However, it would be advisable to do so only
on maturity of the deposit so that there is no loss of interest.
32.I have a FCNB account which I want
to renew?
These deposits are automatically renewed by the
branch in India for the same period. In case you want a change in period or
amount you will have to write to your branch in India.
33.I don’t want to renew my fixed
deposit A/C?
If you do not want to renew your Term deposit
receipt, please send the original receipt duly discharged by you along with
instructions regarding disposal of proceeds of TDR to the concerned branch of
SBI
34. want to know the status of my STDR?
If you want to know status of TDR, you can either
contact the branch for the details or you can avail of the Internet Banking
facility from the branch with ”VIEW” Rights facility" You can view your accounts
any time as per your convenience
35.What is RNOR?
A returning Indian would have RNOR status if he has
been a non resident for at least 9 of the previous 10 years or if he had been in
India for not more than 729 days in the previous seven years.
36.Is interest income on RFC deposits
taxable?
Interest income on RFC deposits is taxable when the
NRI loses RNOR (resident not ordinarily resident) status and becomes an ordinary
resident.
37.How can I update my Signature on my
account?
In case you want to change your signature, you need
to contact your branch. You may send a request letter with old signature, to
register your new signature in the branch records. (Your NEW Signature should be
attested by you with old signature).
38.What is meant by an Inoperative /
Dormant account? / What happens if I don’t use my savings/current account for a
very long time?
Dormant Account Definition:
'Savings' as well as 'Current Account' should be treated as dormant if there are
no transactions ('no credit or debit' other than crediting of periodic interest
or debiting of service charges) in the account for over a period of one year.
Inoperative Account Definition: 'Savings' as well as 'Current
Account' should be treated as inoperative if there are no transactions ('no
credit or debit' other than crediting of periodic interest or debiting of
service charges) in the account for over a period of two years.
No charge is to be levied for activation of 'Inoperative Accounts'. Interest in
Savings Bank accounts will continue to be credited on regular periodicity in
Inoperative / Dormant accounts as well.
39.How do I activate my Inoperative /
Dormant account?
Please inform the branch with which you maintain
your account in writing , the reasons for non-operation and request for
account-activation.
Simultaneously, please ensure that one debit or credit transaction takes place
in a year. You may also
contact the Nodal Officer of Your zone.
40.How can I request for closure of my
Savings account?
You will have to send a letter to the Indian branch
by regular mail. Please enclose notarized copy of the electricity bill/
telephone bill/ bank statement for current address proof.
41.I want to shift my account from one
branch to another?
If you do not want to renew your Term deposit
receipt, please send the original receipt duly discharged by you along with
instructions regarding disposal of proceeds of TDR to the concerned branch of
SBI
42.Can NRE accounts be opened by the
power of attorney holder in India on behalf of a non-resident?
No.
43.What amounts can be credited to RFC
A/c?
- Sale / maturity proceeds of assets held
abroad & income on them
- Pension received abroad
- Currency notes / TCs brought into India at
the time of returning to India
- Balances in FCNR / NRE a/cs.
44.Can NRE accounts be opened by the
power of attorney holder in India on behalf of a non-resident?
Yes. No penalty for premature closure will be
levied, for credit to RFC a/cs. However, the deposit so closed will earn
interest at the rate applicable for the period for which it has run.
45.Can foreign currency notes be
credited into an RFC account?
Yes. If the amount exceeds US$5000 or its
equivalent, it should have been declared in the currency declaration form
46.Can Travellers cheques be credited
into an RFC account?
Yes. If the amount exceeds US$10,000 or equivalent,
it should be declared in the CDF (Currency Declaration form).
47.Can the funds in RFC accounts be
used for making local payments?
Yes.
48.Can a returning Indian on going
abroad again transfer his funds from RFC to FCNR (B) / NRE A/cs?
Yes.
49.Is the amount in RFC accounts fully
repatriable?
Yes.
50.Can RFC accounts be opened jointly?
Yes with another person eligible to open RFC
account.
51.For how many years can an RFC
accounts be held?
RFC accounts can be held till the status of
resident not ordinarily resident (RNOR) is held
52.Is interest income on RFC deposits
taxable?
Interest income on RFC deposits is taxable when the
NRI loses RNOR (resident not ordinarily resident) status and becomes an ordinary
resident.
53.In what currencies are RFC a/cs
denominated?
RFC accounts are denominated in US$, Euro and GBP.
54.Is there any tax deducted at source
on interest earned on RFC accounts?
Yes. TDS is deducted on RFC interest where the
depositor does not hold RNOR status.
Top
MULTI-CITY CHEQUE BOOK
55.What is multi-city cheque (MCC)?
MCC is one that can be written by the customer in
favour of his client and is payable at par at all branches in India of the Bank.
56.What are the charges of multi-city
cheque book?
MCC will be issued to NRIs at a cost of Rs. 3/- per
leaf and will be debited from the account at the time of issue of the cheque
book.
57.Are there any transaction charges?
No. There are no transaction or payment charges.
58.Is there any upper limit for
issuance of Multi-city Cheque book?
Yes. MCC are payable at par only upto Rs. 2,
00,000/-
59.What are the eligibility criteria
for issue of MCC?
Customers having an Average Quarterly Balance of Rs.
10,000/- (including term deposits) are eligible for MCC.
60.How do I apply for a MCC?
You may please write to your branch.
Top
ATM/DEBIT CARD
61.How can I request for an ATM/ Debit
Card and Pin?
Please fill the application form for ATM / Debit
Card and submit the same to the branch with which you maintain your account
62.How can I request to deactivate my
ATM/Debit Card?
Please contact our Contact Centre on following
numbers
- 1800 11 22 11 (accessible through MTNL/BSNL
landline)
- 080-26599990 accessible through any
landline and any mobile line)
- +91 80 26599990 (outside India)
In case you are not able to
contact the Contact Centre for hot listing / blocking your card you can approach
any branch of State Bank Group for doing so.
You may give either the account
number and branch code/name or the card number to the Contact Centre/branches
for hot listing / blocking the card.
63.I have problem with my ATM /Debit
card:
Please contact your branch or our Contact Centre.
Top
REMITTANCES
64.What is SBI Express?
SBI Express enables NRIs to send rupee remittances
to India through Exchange Houses / Banks / our branches in Bahrain, Oman, Qatar,
and UAE.
65.Is there a limit on the number of
beneficiaries that I can remit money to in India?
No.
66.What is Instant Transfer?
Instant Transfer is a free real time rupee
remittance facility from our branch abroad to your / beneficiary’s account
(India) maintained with nearly 15,000 branches of State Bank Group (branches of
SBI and associates) on the Core Banking network. If your or beneficiary account
is in any of the core banking branches of State Bank Group then provide the core
banking account number and avail of this facility.
67. What Is Swift?
Society for Worldwide Interbank Financial
Telecommunication is a worldwide network for financial messages through which
its members (i.e. financial institutions such as banks) can exchange messages
related to money transfer for their customers. The messages are sent securely
and reliably to the target member financial institution of SWIFT.
68.Where do I get the Swift code?
Please visit www.onlinesbi.com/nri/remittances
and click Swift enabled branches for the SWIFT Code.
69.What if the branch I want to remit
does not have SWIFT facility?
An NRI can select a SWIFT linked branch located
close to the beneficiary's home town, which will handle the SWIFT transaction
and transfer the funds to your / beneficiary's account.
70.I made remittance, but the amount is
not yet credited?
Please check with the remitting bank for non-credit
of amount. Please attach a copy of remittance and send it the branch with which
you maintain your account or Nodal Officer of the circle to which your branch
pertains.
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