Accounts and

NRO NRE FCNR(B)

features
To park Indian earnings To park overseas savings To park overseas savings
Purpose of Account like rent, Indian salary, remitted to India after without converting into
dividend etc converting to INR INR
Any person resident
outside India (other than a
person resident in Nepal NRIs(individuals / entities NRIs (individuals
and Bhutan). Individuals / of Bangladesh/ Pakistan /entities of Bangladesh/
Who can open an
entities of Bangladesh/ nationality/ ownership Pakistan nationality/
account
Pakistan nationality / require prior approval of ownership require prior
ownership as well as RBI) approval of RBI)
erstwhile OCBs require
prior approval of RBI)
Nomination Permitted Permitted Permitted
Pound Sterling, US
Currency in which Dollar, Japanese Yen,
Indian Rupees Indian Rupees
account is denominated Euro, Canadian Dollar
and Australian Dollar
Savings Bank Account Savings Bank Account
Account Types Fixed Deposit Fixed Deposit Fixed Deposit
Current Account Current Account
Both with resident / non-
Joint Holding Only with NRIs Only with NRIs
resident
Subject to tax deducted at Exempt from tax Exempt from tax
Tax deducted at source
source deducted at source deducted at source
The principal amount is
not repatriable and can be
used only for local
payments. Funds up to
USD 1 million (or
equivalent) per financial
Repatriation of Principal year can be repatriated out Freely Repatriable Freely Repatriable
of the balance held in
NRO accounts for
theeducation of your
children, for medical
expenses for your family
and you, etc
Repatriation of Interest Freely Repatriable Freely Repatriable Freely Repatriable
For terms not less than 1
As applicable to resident At the discretion of the
Period for fixed deposits year and not more than 5
accounts. bank
years.
Banks are free to Banks are free to Subject to cap :
Rate of Interest determine their interest determine the interest LIBOR / SWAP rates +
rates on savings deposits rates of saving’s and term 200 basis points for
 under NRO Accounts. deposits of maturity of tenor of 1 year to less
However, interest rates one year and above. than 3 years & LIBOR /
offered by banks on NRO Interest rates offered by SWAP rates + 300 basis
deposits cannot be higher banks on NRE deposits points for tenor of 3
than those offered by cannot be higher than years to 5 years (w.e.f.
them on comparable those offered by them on May 4, 2012) for the
domestic rupee deposits. comparable domestic respective currency /
rupee deposits. corresponding
maturities.
Operations on the account Operations on the account Operations on the
in terms of Power of in terms of Power of account in terms of
Attorney is restricted to Attorney is restricted to Power of Attorney is
Operations by Power of
withdrawals for withdrawals for restricted to withdrawals
Attorney in favour of a
permissible local permissible local for permissible local
resident by the non-
payments or remittance to payments or remittance to payments or remittance
resident account holder
the accountholder himself the account holder to the accountholder
through normal banking himself through normal himself through normal
channels. banking channels. banking channels.
Loans i) Permitted up to Rs.100 i) Permitted up to Rs.100
a. In India i) Permitted lakhs lakhs
i) to the Account holder ii) Permitted ii) Permitted up to Rs.100 ii) Permitted up to
ii) to Third Parties lakhs Rs.100 lakhs
i) Permitted
i) Permitted (Provided no funds are
(Provided no funds are remitted back to India
remitted back to India and and are used abroad
b.Abroad
i) Not Permitted are used abroad only) only)
i) to the Accountholder
ii) Not Permitted ii) Permitted ii) Permitted
ii) to Third Parties
(Provided no funds are (Provided no funds are
remitted back to India and remitted back to India
are used abroad only) and are used abroad
only)
c.Foreign Currency
i) Permitted up to Rs.100
Loans in India i) NotPermitted i) Not Permitted
lakhs
i) to the Account holder ii) Not Permitted ii) Not Permitted
ii) Not Permitted
ii) to Third Parties
i) Personal purposes or i)Personal purposes or
for carrying on business for carrying on business
activities. * activities. *
ii) Direct investment in ii)Direct investment in
India on non-repatriation India on non-repatriation
Purpose of Loan
Personal requirement and basis by way of basis by way of
a.In India
/ or business purpose * contribution to the capital contribution to the
i) to the Account holder
ofIndian firms / capital ofIndian firms /
companies companies
iii) Acquisition of flat / iii)Acquisition of flat /
house in India for his own house in India for his
residential use. (Please own residential use.
refer to para 6(a) of Sch.1 (Please refer to para 9 of
toFEMA 5) Sch. 2 to FEMA5)