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Particulars
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Foreign Currency (Non-Resident) Account (Banks)
Scheme (FCNR(B) Account)
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Non-Resident (External)Rupee Account Scheme (NRE
Account)
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Non-Resident Ordinary Rupee Account Scheme (NRO
Account)
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(1)
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(2)
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(3)
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(4)
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Who can open an account
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NRIs (individuals / entities of Bangladesh/ Pakistan
nationality/ownership require prior approval of RBI)
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NRIs (individuals / entities of Bangladesh / Pakistan
nationality / ownership require prior approval of RBI)
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Any person resident outside India (other than
a person resident in Nepal and Bhutan) (individuals / entities of
Bangladesh / Pakistan nationality / ownership as well as erstwhile
OCBs require prior approval of RBI)
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Joint account
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In the names of two or more non-resident individuals
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In the names of two or more non-resident individuals
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May be held jointly with residents
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Nomination
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Permitted
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Permitted
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Permitted
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Currency in which account is denominated
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Pound Sterling, US Dollar, Jap. Yen, Euro, Canadian
Dollar and Australian Dollar
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Indian Rupees
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Indian Rupees
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Repatriable
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Repatriable
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Repatriable
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Not repatriable except for the following in the
account - 1) Current income 2) Upto USD 1 Million per financial
year (April- March), for any bonafide purpose out of the balances
in NRO account / sale proceeds of assets in India acquired by way
of inheritance / legacy inclusive of assets acquired out of settlement
subject to certain conditions.
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Type of Account
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Term Deposit only
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Savings, Current, Recurring, Fixed Deposit
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Savings, Current, Recurring, Fixed Deposit
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Period for fixed deposits
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For terms not less than 1 year and not more than
5 years.
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At the discretion of the bank
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As applicable to resident accounts.
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Rate of Interest
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Subject to cap :
LIBOR / SWAP rates for the respective currency
/ corresponding maturities minus 25 basis points
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Subject to cap :
Fixed Deposits :
LIBOR / SWAP rates, as on the last working day
of the previous month, for US dollar of corresponding maturities
plus 50 basis points with effect from close of business on January
31, 2007.
Savings Bank Account
Interest rate shall be at the rate applicable
to domestic savings account with effect from close of business in
India on 17-11-2005.
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Banks are free to determine interest rates for
term deposits.
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Operations by Power of Attorney in favour of a
resident by the non-resident account holder
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Operations on the account in terms of Power of
Attorney is restricted to withdrawals for permissible local payments
or remittance to the account holder himself through normal banking
channels.
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Operations on the account in terms of Power of
Attorney is restricted to withdrawals for permissible local payments
or remittance to the account holder himself through normal banking
channels.
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Loans
a. In India
i) to the Account holder
ii) to Third Parties
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Permitted up to Rs.20 lakhs
Permitted upto Rs.20 lakhs
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Permitted upto Rs.20 lakhs
Permitted upto Rs.20 lakhs
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Permitted
Permitted
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b. Abroad
i) to the Account holder
ii) to Third Parties
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Permitted upto Rs.20 lakhs
Permitted upto Rs.20 lakhs
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Permitted upto Rs.20 lakhs
Permitted upto Rs.20 lakhs
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Not Permitted
Not Permitted
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c. Foreign Currency Loans in India
i) to the Account holder
ii) to Third Parties
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Not Permitted
Not Permitted
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Not Permitted
Not Permitted
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Not Permitted
Not Permitted
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Purpose of Loan
a. In India
i) to the Account holder
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i) Personal purposes or for carrying on business
activities. *
ii) Direct investment in India on non-repatriation
basis by way of contribution to the capital of Indian firms / companies
iii) Acquisition of flat / house in India for
his own residential use. (Please refer to para 9 of Sch. 2 to FEMA
5)
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i) Personal purposes or for carrying on business
activities. *
ii) Direct investment in India on non-repatriation
basis by way of contribution to the capital of Indian firms / companies
iii) Acquisition of flat / house in India for
his own residential use. (Please refer to para 6(a) of Sch.1 to
FEMA 5)
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Personal requirement and / or business purpose
*
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ii) to Third Party
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Fund based and / or non-fund based facilities
for personal purposes or for carrying on business activities *.
(Please refer to para 9 of Sch. 2 to FEMA 5).
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Fund based and / or non-fund based facilities
for personal purposes or for carrying on business activities *.
(Please refer to para 6(b) of Sch. 1 to FEMA 5)
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Personal requirement and / or business purpose
*
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b. Abroad
To the account holder and Third Party
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Fund based and / or non-fund based facilities
for bonafide purposes.
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Fund based and / or non-fund based facilities
for bonafide purposes.
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Not permitted.
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