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FAQs - General |
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Select an FAQ category from the following list:Features of AccountsAdvances against Deposits Repatriation for Non Residents Remittance of Assets after Liberalisation Acquisition, Transfer and Sale of Immovable Property | |||
Features of Accounts:1. What types of accounts can an NRI open in India?
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2. Can the accounts be a joint account?Yes, with another non Resident Indian. |
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3. Is nomination facility available?Yes. The NRI needs to complete and submit the DA1 form which is part of the NRI account opening form. |
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4. 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 authorised to operate the account. The same must be attested and handed over at the branch when the account is opened. | |||
5. Are funds in NRE/FCNR accounts repatriable?All amounts in the various NRE / FCNR deposits accounts are fully repatriable. |
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6. Can loans be taken against NRE Fixed Deposits / FCNR deposits?Yes. However, these loans cannot be utilised for the purpose of relending, or carrying on agriculture or plantation activities or for investment in real estate business. |
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7. Can fixed deposits be closed prematurely?NRE & FCNR fixed deposits can be closed prematurely. No interest is payable if the deposit is not 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%. |
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8. Will the penalty be waived if the deposit is closed for redeployment in another scheme of the Bank?No penalty is levied if a deposit is closed prematurely for redeployment in another scheme of our Bank. |
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9. 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. |
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Advances against Deposits:10. On return to India, can the NRI retain his assets abroad?Yes, on return to India, an NRI need not declare or surrender their foreign currency assets and the income earned thereon. |
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11. Can NRIs hold funds acquired overseas in foreign currency account in India?Yes. They can be held in RFC (Resident Foreign Currency) Accounts. |
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12. What amounts can be credited to RFC accounts?
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13. Can the proceeds of NRE / FCNR accounts be credited to RFC accounts by premature closure?No penalty is levied if an NRE / FCNR account is prematurely closed and if the proceeds are credited to an RFC account. |
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14. Can a returning Indian who is going abroad again, transfer funds from RFC to FCNR (B) / NRE accounts?Yes. |
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15. Is the amount in RFC accounts fully repatriable?Yes. |
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16. Can RFC accounts be opened jointly?Yes with another person eligible to open an RFC account. |
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17. For how many years can an RFC accounts be held?RFC accounts can be held for any number of years. |
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18. 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. |
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19. 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. |
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Repatriation for Non Residents:20. What are the formalities for repatriation of income earned in India (such as pension, rent received from home / flat in India)?NRI Funds should normally be credited to the NRO account of the Non Resident Indian. He should submit an undertaking and certificate from a Chartered Accountant that the income tax thereon has been paid / provided for / deducted. If the Non Resident Indian does not have taxable income in India, he may submit a simple declaration that he / she is not a tax payer in India. Such declaration or certificate from the Chartered Accountant will be retained by the branch for submission to Income Tax authorities. |
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Remittance of Assets after Liberalisation:21. 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. |
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22. 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. |
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Acquisition, Transfer and Sale of Immovable Property:23. Can an NRI/PIO acquire residential or commercial property in India by purchase or by way of a gift?Yes. General Permission is available except for citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran or Nepal. |
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24. Is there any restriction on the number of properties an NRI can acquire?There is no restriction on the number of properties an NRI can purchase in India. |
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25. Can an NRI/PIO gift his property in India to another NRI/PIO?Yes. |
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26. Can an NRI/PIO acquire immovable property by inheritance from a person resident outside India?An NRI can acquire immovable property by inheritance with the specific approval of the RBI. The property must be acquired in accordance with the provisions of Foreign Exchange laws in force at the time of acquisition or under FEMA regulations. |
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27. To whom can an NRI/PIO sell his immovable property in India?An NRI can sell his property to a resident Indian, another NRI or a PIO. A PIO can however sell his property only to a resident Indian. |
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28. If a PIO wishes to sell his property to an NRI/PIO what should he do?He would need to take prior approval of the RBI. |
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29. Can an NRI repatriate through remittance from abroad the sale proceeds of his property?Yes, provided the amount repatriated is less than the amount paid for acquiring the property in the first place. The amount paid for acquisition must be received in foreign exchange through normal banking channels. In addition, this amount must be the foreign currency equivalent as on date of payment and paid by debit to the NRI account. |
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30. How should the NRI/PIO pay for acquisition of property in India?The property should be acquired using funds remitted to India through the normal Banking Channel or funds held in NRE/FCNR/NRO accounts. .Such payments cannot be made using traveler's cheque or by foreign currency notes. |
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31. Is there any restriction on repatriation of sale proceeds of residential property purchased by an NRI/PIO?Yes. Repatriation is restricted to sale proceeds of not more then two residential properties. |
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32. In which accounts can sale proceeds of residential property received by way of gift be credited?Sale proceeds of residential property can be credited to an NRO account only. |
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33. Can an NRI/PIO repatriate the sale proceeds of immovable property inherited from a Resident Indian?Yes. Sale proceeds not exceeding US$ 1 million can be repatriated subject to production of documentary evidence of inheritance & tax clearance certificates to the authorized dealer. Prior permission from RBI would be required for citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China or Iran. This facility is not available for citizens of Nepal & Bhutan. |
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34. Can rent received by NRI/PIO be remitted abroad?Yes. It can be credited to NRE/NRO account or remitted abroad. |
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35. Can sale proceeds of immovable property inherited by an NRI/PIO from a person resident outside India be repatriated abroad?No. Prior approval from RBI is necessary with documentary evidence in support of inheritance & tax clearance / no objection from Income Tax authority. |
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