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 sale proceeds of such property if and when sold be remitted out of India?

A: In respect of residential properties purchased on or after May 26, 1993, the Reserve bank of India considers applications for repatriation of sale proceeds up to the consideration amount remitted...

Q: What is the procedure for seeking repatriation of sale proceeds?

A: Application for necessary permission for remittance of sale proceeds should be made in Form IPI 8 to the Central Office of the Reserve Bank of India at Mumbai within 90 days of the sale of the...

Q: Are there any formalities to be completed by foreign nationals of Indian origin for purchasing a residential immovable property?

A: They are required to file a declaration in Form IPI 7 with the Central Office of the Reserve Bank of India at Mumbai within a period of 90 days from the date of purchase of immovable property or...

Q: Can the rental income from the residential property be remitted outside India?

A: No. Such income cannot be remitted abroad and will have to be credited to the ordinary non-resident rupee account of the owner of the property. Restricted remittances are, however, now permitted.