NRI ACCOUNTS AND FACILITIES by : DR. T.K. JAIN AFTERSCHO ☺ OL centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india mobile : 91+9414430763
Authorised dealers These are permitted to deal in foreign exchange under section 10(1) of FEMA (foreign exchange management act 1999). They are registered with RBI and permitted to open accounts of NRIs. They are like banks.
Types of accounts of NRIs NRE NRNR FCNR (B) NRO
NRE ACCOUNT NRI are permitted to maintain Non Resident External Rupee account with Banks / Authorised dealers. In this account they may have permitted credits like transfers from other account, refunds, share / debenture refunds etc. If there is a credit other then permitted credit, they have to obtain approval from RBI. They cal also make permitted debits including local payments. Account can be of any type – savings / current.
FCNR (B) ACCOUNT It is called Foreign Currency Non Resident bank account. This account can be in rupee or in designated currencies. Debits and Credits are as per RBI guidelines generally repatriation is not permitted from this accout. Besides NRIs, Overseas Corporate Bodies can also open this account.
NRNR account Non resident non-repatriation account – this can be opened by any NRI (non-resident Indian) – repatration is not permitted. Debits and credits as per RBI approved modes is permitted.
NRO account Non Resident Ordinary Account – debits and credits to permitted heads only (as per RBI rules). When an Indian goes out of India, his ordinary account will convert into NRO account. Repatriation is not permitted from this account.
FEMA guidelines As per Foreign Exchange Management Act Indian authorised dealers must ensure that no Indian is bringing any money from any non-resident. Authorised dealers must also ensure that only permitted debits and credits are allowed. If any money is repatriated out of India, it was earned / brought from out of India. At the same time NRIs are permitted to have foreign currencies as per their requirements as per law.
RFC ACCOUNT Resident Foriegn Currency account – when NRIs / PIOs return back to India, they may maintain their foreign exchange / currency in Resident Foreign currency account. They may get their NRNR / NRO / FCNR account into RFC account. PIO= persons of Indian origin
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