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Latest Questions

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: How can NRIs do the sale/transfer of shares held by them with repatriation benefits?

A: In the case of shares /debentures /bonds acquired by NRIs through stock exchanges under the Portfolio Investment Scheme, general exemption has been granted for transfer through stock exchanges...

Q: Are NRIs permitted to transfer/sell their shares held on non-repatriation basis to resident freely?

A: Yes. General exemption has been granted by Reserve Bank for transfer/sale of shares/debentures/bonds by NRIs/OCBs through stock exchanges if such transfers are made in favor of an Indian citizen or...

Q: What are the admissible debits and credits to NRE accounts?

A: Debits for local payments/investments are allowed freely. Credits to an account, of funds emanating from a local source, would be permissible only if the funds are of a repatriable nature i.e....

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

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

Q: Can FCNR(B) receipt be issued against rupee draft purchased from exchange houses with whom UBI has rupee drawing arrangements?

A: Yes, However, the value date of the FCNR(B) receipt will be the date of conversion of the Rupee funds into FC. In case of NRE deposit created out of the proceeds of such drafts, value date can be...

Q: Are NRE/NRO account holders eligible for loans against their fixed deposit?

A: Yes. except for the purpose of relending, carrying on agricultural/plantation activities or for investment in real estate business. Loans against NRE fixed deposits can, however, be utilized for...

Q: can funds in NRE/NRO accounts be repatriated outside India?

A: Funds held in NRE accounts can be repatriated abroad freely. Funds held in NRO accounts which would generally be from a local source cannot be repatriated outside India. Interest earned on funds in...

Q: What is the rate of interest payable on NRE and NRO accounts?

A: In the case of NRE accounts, the interest rates for deposits up to one year should not exceed Bank Rate minus 2 percentage points. Interest rates on term deposits of over one year are determined by...

Q: What is the difference between NRE account and NRO account?

A: Balances held in NRE accounts can be repatriated abroad freely, whereas funds in NRO account cannot be remitted abroad but used only for local payments in rupees. Consequently, funds remitted from...