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| Foreign currency non resident (FCNR) account Who can open an account? FCNR(B)- NRIs or OCBs other than Individuals/entities of Bangladesh/Pakistan Nationality/ownership. NRE - NRIs or OCBs other than Individuals/entities of Bangladesh/Pakistan Nationality/ownership. NRO - Any person resident outside India other than Individuals/entities of Bangladesh/Pakistan Nationality/ownership. Can a Joint Account be opened? Yes FCNR (B) - In the names of two or more non-resident individuals. NRE - In the names of two or more non-resident individuals. NRO - May be held jointly with residents. Is Nomination facility available? –Yes- In which currency the account can be denominated? FCNR(B) – GBP , US $, Jap. Yen, EURO. NRE - Indian Rupees. NRO - Indian Rupees. What type of accounts can be opened? FCNR(B) - Term deposits only. NRE - Savings Bank, Current, RD and Spl.TDR. NRO - -do- Non resident external (NRE) account Who can operate the account? Close relatives ie. Spouse/Sister/Brother can be given Power of Attorney to operate the account but repatriation cannot be done. It is meant for only local purposes. Can transfer from one NRE account to other is allowed? Yes. It is allowed for genuine purposes. How repatriation is allowed? For any purpose like Medical, Education, Travel to any place outside India without any limit. Can charges on Credit Cards to be debited to NRE account? Yes. What are the amounts that can be repatriated? Sale proceeds of Immoveable Property acquired in India with Foreign Currency. What are the permissible Credits? Income on Shares/Debentures/Investments and proceeds of Shares/Debentures/ Investments provided they are met from Foreign Exchange. Non resident ordinary (NRO) account How NRO funds can repatriated? Remittance/s upto USD 1 million, of balances in NRO accounts/of sale proceeds of assets on production of an undertaking by the remitter together with a certificate issued by a Chartered Accountant as prescribed by the Central Board of Direct Taxes (CBDT). In the case of repatriation of sale proceeds of immovable property by NRIs/PIOs, repatriation can be allowed thereof even if the immovable property was held by the NRIs/PIOs for less than 10 years provided the cumulative period of holding of the immovable property in India and retention of the sale proceeds of the property in the NRO Account is not less than 10 years(Allowed upto 30.6.2003). Non resident non reparable (NRNR) account Can proceeds of NRNR be credited to NRE account? Yes on maturity NRNR proceeds can be credited to NRE account. Can proceeds of NRNR be issued as FCNR(B)? Yes the NRNR proceeds, if NRE account is not there can be directly converted as FCNR(B) and can be repatriated. Can NRNR on premature payment be credited to NRE ? No it cannot be credited to NRE but it can be credited to NRO account. Is income from Rent, Dividend, Interest can be repatriated from NRO account? Yes it can be repatriated. What are the facilities available to NRIs? Housing Loans, Loans in Foreign Currency & Rupee on FCNR(B), Loans on NRE deposits. What is the quantum and rules for availing Housing Loan? Quantum :- Min. Rs.3.00 lacs and Max. Rs. 100.00 lacs. Purpose :- Purchase/Construction of new House/Flat or for Purchase of Plot. Eligibility : - Individuals over 21 years of age with steady source of Income. - NRIs holding valid Indian Passport. - Holding a permanent job for at least 2 years in reputed companies/Govt. departments. - Net Income not less than US$ 12000 per annum. Exchange earners foreign currency (EEFC) What is EEFC Account? An account expressed in foreign currency and maintained with an authorized Dealer, a bank dealing in foreign exchange, in India to credit prescribed percentage of earnings in convertible foreign currency. Who can open an account? A person resident in Indiawhich includes individuals firms, companies, etc. What is the limit prescribed? “Status Holder” Exporter……………………………………………. 100% of earnings. Individual professionals……………………………………………... 100% of earnings. 100% Export Oriented Units/Units in Export Processing Zones/Software Technology Parks/Electronic Hardware Technology Parks.. 70% of earnings. Others………………………………………………………………… 50% of earnings. What are the Types of Accounts? Non-interest bearing current/savings/term deposit account. What are the permissible credits? • Earnings in foreign exchange as per prescribed limits. • Recredit of unutilized foreign exchange earlier withdrawn from such accounts. What are the permissible debits? • Payment towards all current account transactions such as travel, medical, studies abroad, permissible imports, commission, customs duty, etc. However, remittances towards gifts and donations exceeding USD 5000 per remitter/donor per annum is not permissible. • Payments towards permissible capital account transactions. • Payment in India to 100% Export Oriented Units/Units in Export Processing Zones/Software Technology Parks/Electronic Hardware Technology Parks towards cost of goods and services provided by them. • Payment towards trade related loans and advances. • Payment in foreign exchange to a person resident in India for supply of goods and services including payment for air fare and hotel expenditure. Is there any Cheque facility available? -Yes Nomination Facility is available? Yes, permitted like in case of any other resident accounts. Resident foreign currency (domestic) account What is Resident Foreign Currency (Domestic) Account? • You can open a Resident Foreign Currency (Domestic) Account with a bank in India and deposit foreign exchange earnings repatriated to India through banking channel. The earnings could be out of export of goods and/or services, royalty, honorarium etc. • You can also open/credit the RFC(D) account with currency notes, bank notes and travellers cheques (a) saved from your trip outside India, (b) received as honorarium during your trip outside India, (c) received as gift from persons on visit to India, and (d) received from a person on a visit to India for services rendered to him in India. • These accounts are NOT interest bearing and there is no ceiling on the balances that can be built up in these accounts. • The balances held in these accounts can be used for any purpose for which foreign exchange can be bought from a bank in India. QA 22 accounts Does QA 22 Account continue under Foreign Exchange Management Act, 1999? No. With the introduction of Foreign Exchange Management Act, 1999, the accounts opened by foreign nationals who are resident in India are treated as resident accounts. Such accounts are at par with other resident Rupee accounts. Can foreign nationals resident in India open resident account? Yes. Foreign nationals resident in India can open and maintain resident Rupee account in India . Should banks have a separate system to monitor resident accounts maintained by foreign nationals in the absence of QA 22 account? From exchange control point of view, no monitoring is required. However, the banks are free to put in place such administrative arrangements as considered necessary for a smooth conduct of accounts, especially in cases where it is likely that a request for repatriation of funds outside India will be made. Can ADs (banks) remit proceeds of such accounts on closure? Yes. But ADs (banks) should ensure that the funds to be repatriated outside India were either received from abroad or are of repatriable in nature or are permissible in terms of RBI notification No.FEMA.13/2000 dated 3 rd May 2000 . In the absence of QA 22 account how the salary of foreign nationals be remitted ? In terms of GOI notification No.SO.301(E) dated March 30, 2001, banks are free to allow remittance for maintenance of close relatives abroad not exceeding net salary (after deduction of taxes, contribution to provident fund and other deductions) of a person who is resident but not permanently resident in India and is a citizen of a foreign state other than Pakistan. Therefore, independent of QA 22 procedure, they may allow remittance of net salary. Forex facilities for resident Indians What is the quantum of Foreign Exchange can a Resident Indian buy for private travel abroad without the permission from Reserve Bank of India ? A Resident Indian can avail of foreign exchange upto US$ 10,000 in any calendar year for tourism or private travel to any country other than Nepal and Bhutan on the basis of self certification. Is there any compulsion for Endorsement in passport? There is no compulsion for an Endorsement in the passport with the foreign exchange purchased for travel outside India . If it is desired to get passport endorsed, the bank/ money changer releasing foreign exchange would do it. What is the limit for the purchase of foreign exchange without permission of RBI for Study Abroad, Medical Treatment, Employment abroad, Emigration, Remittance for Miscellaneous Purpose, Gifts & Donations? Study Abroad: One can buy foreign exchange upto US$ 30,000 or upto the estimate from the institution abroad, whichever is higher, per academic year on the basis of simple documentary evidence indicating the requirement. Medical Treatment: One can buy foreign exchange on the basis of self-certification, upto US $ 50,000 to meet the expenses for medical treatment outside India . Banks are also permitted to release exchange required in excess of US$ 50,000, on the basis of estimate from a doctor or hospital in India or overseas. One can also buy foreign exchange upto US$ 25,000 per person for meeting boarding/ lodging/travel expenses of the patient and also the accompanying attendant on self-certification. Employment Abroad: One can buy foreign exchange upto US$ 5,000 on production of letter of employment. Emigration: One can buy foreign exchange upto US$ 5,000, or amount prescribed by country of emigration on the basis of emigration visa. Remittance for Miscellaneous Purpose: One can remit foreign exchange outside India upto US$ 500, for miscellaneous purposes, without production of any document provided the rupee equivalent is paid by debit to the account, cheque or by demand draft. Gifts and Donations: One can gift/donate upto US$ 5000 every year on self-certification. Opening of deposit account by foreign tourist Can foreign tourists open a bank account in India during their short visit? Yes, foreign tourists during their short visit to India can open a Non-Resident (Ordinary) Rupee (NRO) account with any bank dealing in foreign exchange . What credits can be made to such accounts? Funds remitted from outside India or those obtained by sale of foreign exchange brought by the tourists to India can be credited to the NRO account. Can the NRO account be used for making local payments? Yes, the tourists can freely make local payments by debit to the NRO account. Can foreign tourists repatriate the balance held in their NRO account at the time of departure from India? Banks have been allowed to convert the balance in the account at the time of departure of the tourists into foreign currency provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than interest accrued thereon. What can be done to repatriate the proceeds of an account that has been maintained for more than six months? An application for repatriation of balance may be made on plain paper to the concerned Regional Office of Reserve Bank. |
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