What are the salient features of NNRE, FCNR, NRNR, and RFC accounts?

Question: What are the other salient features of NRE, FCNR, NRNR, and RFC accounts?

Answer(s)

Raju Kanumuri: Interest on all above deposits is exempt from Indian income tax.
The total balance i.e. principal plus interest is exempt from wealth tax.
Gifts made out of the accounts to close relatives of the account holder in India are exempt from gift tax.
Loans and advances can be granted against the security of term deposits, subject to certain conditions.
Investments can be made by non-residents in permissible securities / shares / debentures / etc. subject to certain conditions.
NRO - This account can be in the form of current / savings / fixed deposits.
An existing account of an individual is converted into a NRO account on his/her attaining NRI status. Deposits in this account can be made by way of remittance from abroad or local deposits. Account is maintained in Indian Rupees. Funds standing in this account are NON-REPATRIABLE.

Source : Reserve Bank Of India

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