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  1. 1. Facts and Benefits of NRI Banking
  2. 2. What is NRI Banking? In order to provide a safe haven for the incomes earned by Indians, who work in foreign countries, Government of India in association with RBI launched NRI Banking services in 1970. This is a special banking service offered only to those Indian citizens, who work or hold business outside the country, and are looking forward for a banking channel for savings and remittances. Based on the underlying currency and mode of use, NRI Banking permits 3 types of accounts, which are available with private as well as public sector banks. All of them are governed by Exchange Control Regulations. • • • • Types of NRI Bank Accounts NRE – Non Resident External Account NRO – Non Resident Ordinary Account FCNR – Foreign Currency Non Resident Account
  3. 3. NRE Account • It is a savings account, which is ideal for Indians residing abroad. • Best channel to transfer foreign earnings easily within the country • NRE account can be opened by any NRI as Savings and Fixed Deposit Accounts • The currency to be maintained is Indian Rupee and the interest earned on savings is not taxable • Nomination is allowed and an NRI join account holder is permitted • Best for paying bills and other expenses within the country
  4. 4. NRO Account • Available as Savings, Current or Fixed deposits. • Best channel for saving money earned through income sources within the country, like rent, dividend, or pension • Funds cannot be repatriated; however, the interest earned can be withdrawn • Interest earned is taxable • Currency to be maintained is Indian Rupee and a local person is permitted to be the joint holder • Only Indian Rupee is allowed to be deposited and maintained in this account
  5. 5. FCNR Account • This is foreign currency fixed deposit account for NRIs • Currencies allowed include US Dollars, Pounds, Japanese Yen, Euro • Indian currency cannot be deposited • Only an NRI can become a joint holder • Both deposit and the interest earned on them are tax-free
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