Accounts Overview
Following table gives an overview of NRE, NRO and FCNR banking accounts available for NRIs, with a brief comparison of their features.
Non Resident External (NRE) Account |
Non Resident Ordinary (NRO) Account |
Foreign Currency Non Resident (FCNR) Deposit |
|
| Account type | Savings Account Fixed Deposit |
Savings Account Fixed Deposit |
Fixed Deposit |
| Held in currency | Indian Rupees | Indian Rupees | USD, GBP, EUR, AUD, CAD |
| Source of funds | Remittance from Overseas/Transfer from existing NRE/FCNR accounts. |
Local income in India (Rent, interest or dividend income). |
Remittance from Overseas/Transfer from existing NRE/FCNR accounts. |
| Repatriation | Fully repatriable – both principal and Interest |
Only interest repatriable on payment of applicable taxes |
Fully repatriable – both principal and Interest |
| Income tax | Interest earned is fully exempt from tax u/s 10(4)(ii) of the Income Tax Act, 1961 |
Tax to be deducted at source @ 30% + applicable surcharge* + Cess 3% * surcharge @10% , if taxable income exceeds INR 10 Lakhs |
Interest earned is fully exempt from tax u/s 10(15)(iv)(fa) of the Income Tax Act, 1961 |
| Joint accounts held with | Non Resident Individual only | Non Resident and/or Resident Individual | Non Resident Individual only |
| International Debit Card | Allowed | Not allowed (ATM card allowed) | Not applicable |
| Key feature | Rupee Account with repatriation benefits | Account for depositing local funds | Foreign currency deposits with full repatriation benefits and no exchange risk |
| Nomination Facility | Permitted | Permitted | Permitted |
| Power of attorney | Permitted for savings and current account | Permitted for savings and current account | Not Permitted |
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