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Q: At what rates are remittances in foreign currencies made by NRIs converted by banks into rupees?

A: Such remittances will be converted by banks at the market rate of exchange.

Q: Is it possible for an RNOR to get an exemption for the allowed two years for his interest income of his FCNR and NRE ac?

A: RNOR are almost treated like NRIs when it comes to taxation. As per income tax rules, the interest on foreign currency deposits in Indian banks is exempt for non-residents and RNOR. Hence interest...

Q: Are debits and credits to NRO accounts freely allowed by banks maintaining the accounts?

A: Yes. Debits for local payments are allowed freely. Funds representing legitimate dues of the account holder or proceeds of remittances received from abroad through banking channels are permitted to...

Q: Can an FCNR deposit in one currency be converted into another currency?

A: Yes. However, it would be advisable to do so only on maturity of the deposit so that there is no loss of interest.

Q: Can the NRI deposits be prematurely extended to get the benefit of higher interest rate?

A: Yes, the deposit will earn interest without penalty for the period it has run, provided it has run for the minimum maturity period and thereafter at the higher interest.

Q: Is nomination permitted in NRI accounts?

A: Yes, NRIs can nominate either a resident or a non-resident as the nominee. However, only one nominee is permitted per account. the nominee can also be minor in which case, the guardian has to be...

Q: Can an NRI place deposits with companies on repatriation basis?

A: Yes, provided the company accepts the deposits under public deposit scheme for a period not exceeding 3 years and has obtained necessary rating etc.

Q: Can NRIs invest in non-convertable debentures on repatriation basis?

A: Yes. Applications for necessary permission should be made to Reserve Bank (Central Office) by the concerned Indian company in form ISD.

Q: Are there any charges while remitting the FCNR proceeds abroad?

A: No, commissions are levied while remitting the FCNR proceeds on maturity.

Q: Does an NRI, FII require any approval from the RBI to invest in mutual funds?

A: No special approvals are required for NRIs, PIOs, FIIs.RBI has granted general permission for investing/redeeming units of the funds subject to conditions.