NRI

BANKING

SERVICES
STUDENT NAME :- PRASAD B. HANJANKAR.

ROLL NO. :- 18

CLASS :- S.Y.BBI.

TOPIC NAME :- NRI BANKING SERVICES

SUPERVISOR NAME :- POOJA TRIPATHI

SUPERVISOR SIGNATURE
 INDEX
I. INTRODUCTION

II. RESEARCH METHOD

III. OBJECTIVE OF THE STUDY

IV. TYPES OF ACCOUNT

V. OPENING OF NRI ACCOUNT

VI. CONCLUSION

VII. BIBLIOGRAPHY
INTRODUCTION :-

NRI Banking is becoming popular among the Non-

resident customers. As India is showing progress more & more NRI
investing in the country.

Banks should try to give their top class service to the

NRI’s as they are looking for convenience, speed, h i g h y i e l d o n
investments with manageable risk, reasonable cost
& q u a l i t y services. Ba nk sho uld low er the minimu m
balance requirement w hich is Rs.50 , 000 fo r NRI,s as
co mpa red to resident w ho hav e to keep Rs.10 00 .

The do cumenta tion procedure in case of opening of

a/c in bank , investing in any property, for buying shares & debt.
Should be reduced and in case of loan at a faster speed. The services
of banks should be fast, accurate & up to the standard as they have
to fa ce co mpetition no t o nly fro m the lo cal banks but
a lso fro m the banks ba sed overseas.

Banks should also extend their services by

providing ATM’s abroad, E –banking with efficient facility &
balance inquiry message through mobilizes. Investment of NRI
would help to bring more in flow of foreign exchange through taxes
& investment policy & this would help Indian government to repay
its debt to the World Bank.
 Indian government should give their best services
&efforts to enco ura ge NRI to inv est in India . This
w ould help o ur eco no m y to flourish & grow in future.

As per RBI guidelines, the residential status of an

Indian changes to that of the Non- resident, in the event of
his stay abroad being more than 183 days.

This period of 183 days is not applicable in

certain cases like going overseas for employment or business.
It is mandatory to inform the bank of your change of
your residential status. With a view to attract the savings and other
remittance into India through banking channels from the person
of Indian Nationality / Origin who are residing abroad and
bolster the balance of payment position, the Government of India
introduced in 1970 Non-Resident(External) Account Rules which
are governed by the Exchange Control Regulations.

The funds held in Non-Resident (External) Accounts

(NRE Accounts) qualify for certain benefits like exemptions
from taxes in India, free repatriation facilities, etc. NRI banking
facilities are available to NRIs and PIOs.
WHO IS A NON – RESIDENT INDIAN [NRI]

A Non Resident Indian (NRI) as per FEMA 1999 is an

Indian citizen or Foreign National of Indian Origin resident outside
India for purposes of employment , carrying on business or vocation
in circumstances as would indicate an intention to stay outside India
for an indefinite period. An individual will also be considered NRI if
his stay in India is less than 182 days during the preceding financial
year. To meet the specific needs of non-resident Indians
related to their remittances, s a v i n g s , e a r n i n g s ,
investments
and repatriation, the Government of India
introduced in 1970 Non-Resident (External) Account Rules which
are governed by the Exchange Control Regulations.

"Non Resident Indian" (NRI)

Non resident Indian (NRI) means an Indian citizen or a

foreign citizen of Indian origin (excluding citizens of
Bangladesh and Pakistan) residing outside India. Students
studying abroad are also treated as NRIs. Indian citizen who stays
abroad for an indefinite period on employment, business or on any
vocation is a Non-Resident. Diplomats posted abroad, persons
posted in UN Organizations and Officials deputed by PSU on
temporary assignments are also treated as Non-residents
RESEARCH METHODOLOGY

In order to conduct the research an appropriate

methodology became necessary. In this direction both primary
as well as secondary data were attempted to be collected .

The methodology for collecting data with reference to

the secondary data was taken from the different published articles ,
books, journals, and the relevant websites .

The library of the college was of great help .The

questionnaire was initially prepared in tough sketch at the first
instance. These questions were discussed with our internal guides
and our teaching faculty.
They have provided valuable suggestions , additions ,
deletions and modifications of the rough question air methodology
became a preplanned strategy in collecting , editing , tabulation and
in interpreting the required information for the research. Thus
methodology relied on both primary and secondary data with the
help of questionnaire , discussion , observation as well as published
work and unpublished work .
OBJECTIVE OF THE STUDY

 To get an overview of NRI BANKING SERVICES

 To analyze the growth of NRI banking services

 To study the innovative concepts emerging in the banking

industry for NRI’s

 To observe the facility provided to NRI by Indian banks.

 To analyze the response of NRI given on the computerization

and new invention in an Indian bank.
PIO CARD SHCEME

The Government has launched a comprehensive

Scheme for the Persons of IndianOrigin-called the ‘PIO Card
Scheme’. Under this Scheme, Persons of Indian Originup to the
fo urth g enera tion (g rea t grandpa rents) settled
thro ug ho ut the w orld, except for a few specified countries,
would be eligible.

The card would be issued to eligible applicants through

the concerned Indian Embasises / h i g h Commissions/Consulates
and for those staying in India on a long term visa,
theconcerned Foreigners Regional Registration Officer (Delhi
, Mumbai, Calcutta,Chennai) would do the same. The fee for the
card, which will have a validity of 20years, would be US$1000.

"Person of Indian origin" means a foreign citizen (not

being a citizen of Pakistan , Bangladesh and other countries as
may be specified by the Central Government from time to
time).
What is an OCB?

Overseas Corporate Bodies (OCBs) are bodies p

r e d o m i n a n t l y o w n e d b y indiv idua ls o f India n na tio na
lity o r o rig in resident outside India a nd include overseas
companies, partnership firms, societies and other corporate bodies
which are owned, directly or indirectly, to the extent of at
least 60% by individuals of Indian nationality or origin resident
outside India as also overseas trusts in which at least 60 % o f the
beneficial interest is irrevo ca bly held by such perso ns.
Such ow nership interest should be a ctua lly held by them
a nd no t in t he ca pacity as nominees. The various facilities
granted to NRIs are also available with certain exceptions to
OCBs so long as the ownership/beneficial interest held in
them by NRIs continues to be at least 60%What are the
various facilities available to NRIs/OCBs? NRIs/OCBs are granted
the following facilities:

 Maintenance of bank accounts in India.

 Investment in securities/shares of, and deposits with Indian

firms/ companies.

 Investments in immovable properties in India.

Types of accounts

NRI accounts are maintained by banks which hold authorized

dealers' licences from the RESERVE BANK OF INDIA.
Some cooperative and commercial banks have also been
specifically permitted to maintain NRI accounts in rupees
even though they are not authorized dealers. The financial
budget for 2007-08 extends NRI accounts to regional rural
banks (RRBs) as well. This would boost remittances from
NRIs particularly in Bihar, Kerala, Uttar Pradesh and Gujarat
where a large number of persons from rural areas from these states
are employed overseas.
B a n k i n g L a w s f o r N R I s allow for
accounts w i t h a u t h o r i z e d d e a l e r t o b e maintained in
Indian rupees and in foreign currency.
Various accounts:-

 NRE A/c- non residential (external) rupee account.

 FCNR-B A/c- foreign currency non residential account.

 NRO A/c- non resident ordinary account.

 RFC A/c- resident foreign currency account.

While the FCNR (B) is a term deposit only, the

NRE and NRO accounts can be operated as either savings,
current, recurring or fixed deposit accounts.
Non-Resident (External) Rupee (NRE) Accounts

 Both Principal and Interest can be repatriated/transferred out

of India

 Savings rate on NRE accounts is at par with savings rates in

resident accounts

 Term deposits can be made for 1 to 3 years.

 The interest rates on (NRE) Term deposits cannot be higher

than
LIBOR/SWAPr a t e s a s o n t h e l a s t w o r k i n g d a y o f t
h e p r e v i o u s m o n t h , f o r U S d o l l a r o f corresponding
maturity plus 50 basis points.

The interest rates on three year deposits also

apply in case the maturity period ex ceeds three y ea rs.
The cha ng e in interest ra te also a pplies to NRE
depo sits renewed after their present maturity period.

FCNR (B) Accounts

 As in NRE accounts, both principal and interest are
repatriable.
  Presently, deposits can be made in 6 specific foreign
currencies (US Dollar, Pound Sterling, EURO, Japanese
Yen, Australian Dollar and Canadian Dollar).

 Interest rate- Fixed or floating within the limits of

LIBOR/SWAP rates for the respective
currency/corresponding term minus 25 basis points (except
Japanese Yen).

 The term of deposits can range between 1 to5 years.

NRO Accounts

 Only current earnings are repatriable .

 Sav ing s NRO a ccounts a re no rma lly o pera ted to cre

dit rupee income fro mshares, interest, rent from property
in India, etc.

 In case of term deposits, banks are allowed to determine their

own interest rates.

Resident Foreign Currency (RFC) Account

NRIs and PIOs returning to India can maintain an

RFC account with an authorized bank in India to transfer
funds from their NRE/FCNR (B) accounts. Proceeds
of assets held outside India before their return to India
can be credited to the RFC a cco unt. These funds are
 free fro m a ll restrictions as to their utiliza tion o r
in investment in any form outside India.

 OPENING OF NRI ACCOUNT

HOW TO OPEN NRI ACCOUNTS WITH A BRANCH IN

INDIA

To open an NRE account please complete theaccount opening

formand mail it tothe branch of your choice along with ;

 Passport copy

 Visa/residence permit

 2 photographs

 Initial money remittance

Your signature may be verified by anyone of the

following;
  Indian Embassy/consulate

 Any person known to the Bank

 Notary public

 Any of our offices abroad

You can open

 NRE Saving Bank a/c / Current Accounts

 Fixed Deposits in Indian Rupees

 Fixed Deposits in Foreign Currency

 NRO accounts (Rupee accounts for crediting income in India

)You can authorize a resident to operate your account through
a Power of Attorney or Letter of Authority Nomination
Facility available (Nominee can be a resident Indian also).
Conclusion

The two accounts are used by NRI’s to park their hard

earned money in India. While the NRE account is used to park
money earned overseas to India or to keep the savings in Indian
currency, NRO account is used to park money earned from Indian
sources in India. So, if you are confused between these two, then you
can make a choice as per your needs and the benefits associated with
the two accounts.
BIBLIOGRAPHY

 www.keydifferences.com

 www.scribd.com

 www.shodhganga.com

 www.investopedia.com