Q2. Who can open an NRI accounts?
A2. all Non Resident Indians & Persons of Indian Origin

Q3. Can the accounts beheld in joint names?
A3. Yes, with another non Resident.

Q4. Is nomination facility available to NRI accounts ?
A4. Yes. Please complete form DA1 which forms part of the NRI account opening form.

Q5. Can any person in India be authorised to operate the NRI's account?
A5. Yes. Either by using a letter of authority or by giving a Power of Attorney. The letter of authority duly completed with the signature of the person who is authorised to operate the account duly attested may be handed over to the branch when the account is opened to authorise a person in India to operate the account.

Q6. Can the account be accessed through internet?
A6. Yes.

Q7 Are funds in NRE / FCNR accounts repatriable?
A7. All amounts in the various NRE / FCNR deposits accounts are fully repatriable.

Q8. Can loans be taken against NRE Fixed Deposits/FCNR deposits?
A8. Yes. However, these loans cannot be utilised for the purpose of relending, or carrying on agriculture or plantation activities or for investment in real estate business.

Q9. Can a person employed in Bhutan or Nepal open NRE/FCNR accounts or Fixed Deposits in foreign currency?
A9. No. Persons resident in Bhutan and Nepal cannot normally open NRE accounts/FCNR deposits except where the funds to these accounts are remitted in free foreign exchange.

Interest earned on these accounts can be remitted only in Indian Rupees to NRIs/PIOs in Nepal & Bhutan.

Q10. Can fixed deposits be closed prematurely?
A10. NRE & FCNR fixed deposits with the bank can be closed prematurely. No penalty is levied after the minimum period of 1 year, for the amounts upto Rs.5.00 lacs or equi. of USD 10,000/-.However, Premature withdrawal permissible subject to 1% penal interest, after the minimum period of 1 year, for the amounts ABOVE Rs.5.00 lacs or equivalent of USD 10,000/-.

Q11. Will the penalty be waived if the deposit is closed for redeployment in another scheme of the Bank?
A11. Yes. No penalty is levied if the deposit is closed prematurely for redeployment in another scheme of our Bank.

Q12. Can an FCNR deposit in one currency be converted to a deposit in another currency?
A12. Yes. However, it would be advisable to do so only on maturity of the deposit so that there is no loss of interest.

Q13. Can FCNR/NRE deposits be value dated?
A13. Deposits are value dated. The date will be the date on which the funds are received by State Bank of Hyderabad in its various Nostro accounts

Q14. Can Rupee loans be taken against NRE/FCNR deposits in India by the depositor himself?
A14. Yes.

Q15. For what purpose can these loans be taken?
A15.
1) For personal purposes or for carrying on business activities
2) For direct investment in India on non repatriation basis by way of contribution of the capital of India firms / companies
3) For acquisition of a flat / house in India for own residential use.

Q16. Are there any prohibitions for the purpose for which the loan is taken?
A16 The loan cannot be used for the purpose of re-lending, carrying on agriculture or plantation activities or for investment in real estate business.

Q17 Can a loan be given to third parties in India on the security on NRE/FCNR deposits?
A17. Yes.

Q18. Can loans be taken abroad against the security of these deposits by the depositor?
A18. Yes.

Q19. Can the loans be taken abroad by third parties against the security of these deposits?
A19. Yes.

Q20. Can foreign currency loans be availed by third parties in India against the security of NRE/FCNR deposits?
A20. No.

Q21. On permanent return to India, can the NRI retain his assets abroad?
A21. Yes, on return to India, NRI need not declare or surrender their foreign currency assets and the income earned thereon.

Q22. Can NRIs hold funds acquired overseas in foreign currency account in India?
A22. Yes. They can be held in RFC (Resident Foreign Currency ) Accounts.

Q23. What are the amounts that can be credited to RFC A/c?
A23.
1) The Sale / maturity proceeds of assets held abroad & income on them
2) Pension received abroad
3) Currency notes / TCs brought into India at the time of returning to India
4) Balances held in FCNR / NRE a/cs.

Q24. Can the proceeds of NRE / FCNR a/cs be credited to RFC a/cs by premature closure?
A24. Yes. No penalty for premature closure will be levied, for credit to RFC a/cs. However, the deposit so closed will earn interest at the rate applicable for the period for which it has run.

Q25. Can foreign currency notes be credited into an RFC account?
A25. Yes. If the amount exceeds US$5000 or its equivalent, it should have been declared in the currency declaration form.

Q26. Can Travellers cheques be credited into an RFC account?
A26. Yes. If the amount exceeds US$10,000 or equivalent, it should have declared in the CDF (Currency Declaration form).

Q27. Can a person who returns to India after a short assignment abroad open an RFC a/c?
A27. Yes.

Q28. Can the funds in RFC accounts be used for making local payments?
A28. Yes.

Q29. Can a returning Indian on going abroad again transfer his funds from RFC to FCNR(B) / NRE a/cs?
A29. Yes.

Q30. Is the amount in RFC accounts fully repatriable?
A30. Yes.

Q31. Can RFC accounts be opened jointly ?
A31. Yes with another person eligible to open RFC account.

Q32. For how many years can an RFC accounts be held?
A32. RFC accounts can be held for any number of years.

Q33. Is interest income on RFC deposits taxable?
A33. Interest income on RFC deposits is taxable when the NRI loses RNOR (resident not ordinarily resident) status and becomes an ordinary resident.

Q34. What is RNOR?
A34. A returning Indian would have RNOR status if he has been a non resident for at least 9 of the previous 10 years or if he had been in India for not more than 729 days in the previous seven  years.

Q35. In what currencies are RFC a/cs denominated?
A35 At present RFC accounts can be opened in US$ only .

Q36. Is there any tax deducted at source on interest earned on RFC accounts?
A36 Yes. TDS is deducted  on RFC interest where the depositor does not hold RNOR status.

Q37. Can a non resident repatriate his pension received in India?
A37. Yes.

Q38 Can an NRI repatriate interest income on non repatriable deposits held in India?
A38 Yes.

Q39. Can an NRI repatriate rent received from his house/flat in India?
A39. Yes.

Q40. What are the formalities for repatriation of such amounts?
A40 Such amounts should normally be credited to the NRO account of the Non resident Indian. He should submit an undertaking and certificate from a Chartered Accountant that the income tax thereon has been paid / provided for /deducted. If the Non Resident does not have taxable income in India, he may submit a simple declaration that he/she is not a tax payer in India. Such declaration or certificate from the CA will be retained by the branch for submission to IT authorities.

Q41. Can a Non-resident submit his life certificate from abroad?
A41. Yes. The life certificate should be issued by an authorised official of the Indian Embassy / High Commission or a Notary Public or an officer of an Indian Public Sector Bank attached to its branch in the country of residence of the pensioner.

Q42. Under liberalised norms, how much money can an NRI remit abroad annually from his NRO a/cs?
A42. He can remit upto US$ 1 million (or equivalent) per calendar year on production of an undertaking & certificate.

Q43. Is any prior permission of RBI required?
A43. No, however, NRIs who are citizens of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal & Bhutan are not allowed to repatriate assets without prior permission of RBI.

Q44. Can an NRI / PIO acquire residential or commercial property in India by purchase or by way of a gift?
A44. Yes. General Permission is available except for citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran or Nepal.

Q45. Is there any restriction on the member of properties an NRI can acquire?
A45. No. There is no restriction on the number of properties an NRI can purchase.

Q46 Can a foreign national of Non Indian origin be treated as second holder of the residential / commercial property?
A46. No.

Q47. Can a foreign national of Non Indian origin resident outside India acquire any immovable property by way of purchase /gift?
A47. No.

Q48. Can agricultural land / plantation property / farm houses be acquired by a person resident outside India?
A.48. No. No person resident outside India can acquire such property.

Q.49 Can an NRI / PIO gift his property in India to another NRI /PIO?
A.49 Yes.

Q.50 Can an NRI /PIO acquire immovable property by inheritance from a person resident outside India?
A.50 Yes, with the specific approval of the RBI, provided the property was acquired in accordance with the provisions of Foreign Exchange laws in force at the time of acquisition or under FEMA regulations.

Q.51 To whom can an NRI/ PIO sell his immovable property in India?
A.51 An NRI can sell his property to a resident Indian, another NRI or a PIO. A PIO can however sell his property only to a resident Indian.

Q.52 If a PIO wishes to sell his property to an NRI /PIO what should he do?
A.52 He would need to take prior approval of the RBI.

Q.53 Can an NRI repatriate sale proceeds of his property purchased by him by remittance from abroad?
A.53 Yes. 
 However the amount repatriated should not exceed the amount paid for acquisition ,viz
a) amount received in foreign exchange through normal Banking Channel .
b) the foreign currency equivalent as on date of payment of amount paid by debit to NRI a/c

Q.54 How should the NRI / PIO pay for acquisition of property in India?
A.54 The property should be paid for by funds remitted to India the normal Banking Channel or funds held in NRE/FCNR/NRO account. Such payment cannot be made either by travellers cheque or by foreign currency notes.

Q.55 Can refund of application money / purchase consideration by the vendor on account of non-allotment of flat together with interest be credited to NRE a/c?
A.55 Yes, provided original payment was made by inward remittance or by debit to NRE / FCNR a/c. No permission of RBI is required.

Q.56 Can NRI /PIO avail of a housing loan for purchase of residential accommodation or for repairs, renovation or improvement of the residential accommodation?
A.56 Yes. Such loans can be repaid by inward remittance through normal banking channel, by debit to NRI / FCNR /NRO account or out of rental income from renting out the property. The borrowers’ close relatives through their accounts in India can also repay such loans.

Q.57 Can an NRI avail of a housing loan from his employer in India?
A.57 Yes.

Q.58 Can sale proceeds of residential property acquired by availing a rupee loan be repatriated?
A.58 Yes provided the loan was repaid by inward remittance or by debit to NRE/FCNR account.

Q.59 Is there any lock in period for sale of property purchased by inward remittance or debit to NRE / FCNR a/c?
A.59 No.

Q.60 Is there any restriction an repatriation of sale proceeds of residential property purchased by an NRI/PIO?
A.60 Yes. Repatriation is restricted to sale proceeds of not more then two residential properties.

Q.61 In which accounts can sale proceeds of residential property received by way of gift be credited?
A.61 It can be credited into an NRO account only.

Q.62 Can sale proceeds of immovable property inherited by an NRI/PIO from a resident Indian be repatriated?
A.62 Yes. Sale proceeds not exceeding US$ 1 million can be repatriated subject to production of documentary evidence of inheritance & tax clearance certificates to the authorized dealer. Prior permission of the RBI would be required for citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China or Iran. This facility is not available for citizens of Nepal & Bhutan.

Q.63 Can rent received by NRI /PIO be remitted abroad?
A.63 Yes. It can be credited to NRE/NRO account or remitted abroad.

Q.64 Can sale proceeds of immovable property inherited by an NRI/PIO from a person resident outside India be repatriated abroad?
A.64 No. Prior approval of RBI is necessary with documentary evidence in support of inheritance & tax clearance / no objection from IT authority.

Q.65 Can an NRI /PIO continue to hold immovable property acquired by him when he was resident?
A.65 Yes.

Q.66 Can sale proceeds of such immovable property be remitted abroad?
A.66 Yes.

Q.67 Can NRI invest in shares and debentures of Indian companies?

A.67 Yes , NRIs can invest in the new issue of shares and debentures of Indian Companies by subscribing to new issues of equity/preference shares/debentures under different percentage schemes approved by RBI. As per the percentage scheme the total percentage of issue to NRIs/ OCBs should not exceed the specified limit. Different percentages are specified for companies engaged in different areas:

a)For hospitals & hotels - specified percentage is 40 %

b)For companies engaged in hire purchase, leasing etc. - the specified percentage is 24%.

c) For industries engaged in export trading activities, housing & real estate development and Air Taxi operation - the specified percentage is 100%

The amount invested and interest on that amount can be repatriated if the required conditions are fulfilled. Moreover, NRIs can also purchase both old and new shares of sick industrial units for its revival. They can also purchase shares of Public Sector Enterprise (PSE).

68 Q. Can NRIs invest in the Mutual funds schemes?

68 A Yes, NRIs can invest in domestic mutual funds on repatriation basis. They can also invest in mutual funds floated by public and private sector mutual funds on non-repatriation basis by giving a separate application to RBI. There is no separate approval required for the same.
           
Likewise, they can also invest in Money Market Mutual Funds floated by commercial banks and other financial institutions. There is no separate approval required for the same.

69 Q. What investments can an NRI make on Non-Repatriation basis?

69 A Schedule – IV of notification No. 20/2000-RB deals with provisions relating to such type of investments. Briefly the provisions are as follows:-

General Prohibition
Investments in shares or convertible debentures of an Indian Company engaged in following type of activities are not permitted.

a)Chit Fund or Nidhi Company

b)Agricultural or Plantation activities

c)Real Estate Business

d)Construction of farm houses or

e)Dealing in Transfer of Development Rights (TDRs)

 General Permission
Subject to above, NRIs are free to invest without any limit on non-repatriation basis in shares or convertible debentures of an Indian Company. However, only direct investment in the form of public issue, private placement or right issue is covered here. It follows that secondary investment, on private arrangement basis, would require prior RBI approval.

NRI can also, without any limit, purchase on non-repatriation basis dated Government Securities, treasury bills, units of domestic mutual funds, units of Money Market Mutual Funds.
However, NRIs are not permitted to make Investments in Small Savings Schemes including PPF.