Types of Bank Accounts and Comparison Table
Features
|
NRO
|
NRO Fixed
|
NRE
|
NRE Fixed
|
FCNR(B)
|
Resident Foreign Currency(RFC)
|
Account Type
|
Savings &
Current
|
Fixed
|
Savings and Current
|
Fixed
|
Fixed
|
Fixed
|
Currency
|
Indian Rupee
|
Indian Rupee
|
Indian Rupee
|
Indian Rupee
|
US Dollars, British
Pounds, Euros, Japanese Yen, Canadian Dollars, Australian Dollars, Danish Krone, Swiss Francs, Swedish Krona |
US Dollars, British
Pounds, Euros, Japanese Yen |
Minimum Monthly balance
|
Both Savings & Current INR 75000
|
First deposit minimum INR 75000
|
Both Savings & Current INR 75000
|
First deposit minimum INR 75000
|
UDS 1000
Euro 750
GBP 500
|
USD 5000
Euro 5000
GBP 3500
|
Joint Account
|
With resident Indians and other NRIs
|
With resident Indians and other NRIs
|
With resident Indians and other NRIs
|
With resident Indians and other NRIs
|
With resident Indians and other NRIs
|
Only with other
returning
Non-Resident Indians |
Tax
|
Taxes applicable in India
|
Taxes applicable in India
|
Tax free in India
|
Tax free in India
|
Tax free in India
|
Taxes applicable in India
|
Repatriation
|
Restricted
repatriation
(Post Deduction of applicable tax) |
Restricted
repatriation
(Post Deduction of applicable tax |
Free Repatriation
|
Free Repatriation
|
Free Repatriation
|
Free Repatriation
|
Deposit of Rupee funds
generated in India
|
Permitted
|
Permitted
|
Not Permitted
|
Not Permitted
|
Not Permitted
|
Not Permitted
|
Suitable For
|
You need an account for
making INR payments / investments in India from your
India earnings
You need an account for depositing your income in
India from sources such as rent, dividends, etc.
You wish to open the
account jointly with a person resident in India
|
You want to earn higher returns compared to a
savings/current account on your Rupee income earned
in India
|
You need an account for making INR payments /investments
in India from your overseas earnings
You want to maintain your savings in INR but keep
them liquid
You wish to open an INR account jointly with another
NRI
You want your Rupee
savings to be freely
repatriable.
|
You want to earn higher returns on your overseas savings
as compared to a savings/current
account in India
You want tax free*
returns in India on your INR fixed deposits
|
You want tax free*
returns in India on your foreign currency fixed deposits
You wish to keep your
overseas savings in
India but do not want to convert them into INR
|
You wish to maintain
your overseas savings
or NRE/FCNR (B)
account balances in
foreign currency even
after you return to India and convert them into INR
at a more favourable exchange rate at a later date.
|
Note: As per current local regulations the permissible remittance
from the balances in NRO accounts is up to USD 1 million, per financial year. The
remittances (net of applicable taxes) will be allowed to be made on production
of an undertaking by the remitter and a Certificate from a Chartered Accountant
in the prescribed format.
These are general information and author is not responsible for
any changes take place in RBI rules and in turn banking channels in India.
Interesting piece. I think sometimes, financials, documentation etc if not dealt with well, can become a serious issue. NRI services Bangalore
ReplyDeleteThis comment has been removed by the author.
ReplyDelete