What is NRE Account

NRE Account Types, NRE Account Providers | Videshi.com

What Is A NRE (Non-Resident External) Account ?

In Banking terminology, the term NRE Account refers to funds deposited with a financial institution that allows for the efficient conversion and transfer of Indian and Foreign currency both within and outside of India. NRE account  allows you to keep your money in Indian rupees.

NRE Account can only be opened in India by an NRI (Non-Resident Indian) or by an Indian Origin / Nationality who has lived outside of India.


Features And Benefits Of NRE Account

  • Tax Benefits: Interest earned on NRE savings account as well on NRE fixed deposit account is tax-free in India
  • Repatriation Benefits: Funds in NRE accounts are fully and freely repatriable.
  • Low Balance Required: Due to increased competition among public and private sector banks, the minimum balance required has dropped significantly. These days many banks like ICIC, HDFC and Kotak etc... requires just Rs 10,000 as a minimum balance.
  • High-Interest Rates: Both NRE savings account and NRE fixed deposit account offer high-interest-rate though this varies from bank to bank. The good part is that interest rate is calculated on daily closing balance and interest is paid half-yearly in June and December. 
  • Convenience: It's easy to open an NRE account. Most of the banks allow you to open NRE account online. You just need to fill a form online, take a printout, attach the self-attested copy of required documents and courier to the bank in India.
  • Joint Holding:  One of the key benefits of NRE account is that you can jointly open it with another NRI e.g. your wife or your children.
  • Mandate Holder Benefits: The mandate is nothing but an authorization is given to a person to operate the customer's bank account on his behalf. Banks like ICICI and HDFC issues free Cheque Book and ATM card for mandate holder. Many NRIs make their parents as mandate holder so that they can access the fund when they need.
  • Investment Benefits: Many banks like HDFC and Axis bank allows NRIs to invest in Mutual funds by linking their NRE saving account to Investment savings account.
  • NRI Advantage: NRE account allows you to handpicked exclusive offers catering to your needs when in India as well as when abroad. You can avail a variety of offers across healthcare, shopping, gifting and more.


Types Of NRE Account

  • Savings Account  
  • Current Account 
  • Term / Fixed Deposit Account


Documents Required for NRE Account

Properly filled Account Opening form with
  • Copy of the Passport
  • Copy of Permanent Account Number (PAN)
  • Visa / Residence Permit
  • Two Copies of Recent Photographs
  • Initial Money Remittance

List of NRE Account Providers

NRE Account ProviderView & Apply
ICICIApply Online
AXISApply Online
HDFCApply Online
HSBCApply Online
YES BankApply Online
IDBI BankApply Online
Kotak Mahindra BankApply Online
IndusInd BankApply Online
South Indian BankApply Online
Vijaya BankApply Online
SBIApply Online

Related Questions

Q: Can residential/commercial property be mortgaged by NRI?

A: The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial...

Q: How can an NRI make payment for the purchase of residential property in India?

A: Payment can be made by NRI / PIO out of : Funds remitted to India through normal banking channels or Funds held in NRE / FCNR (B) / NRO account maintained in India No payment can be made...

Q: Is repatriation of the application money for booking of flat/ payment made to the builder by NRI allowed when the flat is not allowed or the booking contract is canceled?

A: The Authorised Dealers can allow NRIs / PIOs to credit refund of application/ earnest money/ purchase consideration made by the house building agencies/ seller on account of non-allotment of flat/...

Q: If the rupee loan was taken by the NRI from an authorized dealer for the purchase of a residential property can an NRI repatriate the sale proceeds of such property?

A: Yes, Authorised Dealers have been authorised to allow repatriation of sale proceeds of residential accommodation purchased by NRIs/ PIOs out of funds raised by them by way of loans from the...