How do NRE, NRO and NRSR accounts differ
Question: How do NRE, NRO and NRSR accounts differ?
Raju Kanumuri: Balances held in NRE accounts can be repatriated abroad freely, whereas funds in NRSR and NRO account cannot be normally remitted abroad but have to be used only for local payments in rupees. Consequently, funds remitted from abroad or local funds which can otherwise be remitted abroad to the accountholder can only be credited to NRE accounts.
Q: Can loans/overdrafts be given to third parties against the collateral/security of NRI deposits in India?
A: Loans to third parties are allowed against the collateral/ security of NRI deposits subject to fulfillment of certain formalities. Loans/ overdrafts cannot be given for carrying on agricultural/...
Q: What about debts to FCNR accounts for local payments?
A: Debts for local payments are allowed freely.
Q: Are the interest rates on FCNR deposits liable for periodic revision?
A: The rates are based on the rates prevailing in international markets for the currencies concerned for deposits of comparable maturities and are, therefore, liable for change. But deposits will...
Q: What is the maximum period of maturity for an FCNR(B) term deposit accounts?
A: FCNR accounts can be opened for a maximum of five years.
Q: Can OCI holders open PPF account in India?
A: OCI holders who are living in India are considered to be residents in India. Their status is no longer that of a Non-Resident (NRI). Therefore they can open PPF account in India.
While we are on...
Q: What are the step by step instructions to replace lost OCI card?
A: Before a lost OCI card can be replaced,
Applicants should file a police report. To apply for a replacement OCI Card, applicants will have to provide a copy of the complaint filed with the police....
Q: Can i repatriate funds in the NRI account?
A: The principal as well as the interest of the funds in an NRI account can be repatriated only if a person holds either an NRE account or an FCNR account. In case of an NRO account, only interest...
Q: Are there any prohibitions on the purpose for which loans cannot be taken?
A: The loans cannot be utilized for the purpose of re-lending or for carrying on agriculture or plantation activities or for investment in real estate business.