This document discusses banking options for NRIs in India. It defines an NRI as an Indian citizen who has emigrated abroad for over 6 months. The main types of bank accounts NRIs can open are NRO accounts (non-repatriable rupee accounts), NRE accounts (rupee accounts funded by foreign exchange), and FCNR accounts (foreign currency term deposits). Key details are provided on usage, deposits allowed, tax implications and repatriation limits for each type of account. The document also outlines quantity limits and duty rates for NRIs bringing gold and silver into India.

1. NRI BANKING

2. WHO IS AN ”NRI”
A Non-Resident Indian (NRI) is a citizen of India who
holds an Indian passport and has temporarily emigrated
to another country for six months or more for
employment, residence, education or any other
purpose.

3. Types of NRI accounts
An individual cannot keep a resident saving account once
he/she becomes an NRI. An NRI can only have the following
options to open a bank account in India namely -
Ordinary Non-Resident Accounts in Rupees [NRO]
Non-Resident (External) Accounts in Rupees [NR(E)]
Foreign Currency (Non-Resident) Account (Bank) Scheme
[FCNR(B)]

5. Ordinary Non-Resident Accounts in Rupees
[NRO]
 These are Rupee denominated non-repatriable accounts and
can be in the form of savings, current recurring or fixed
deposits. These accounts can be opened jointly with
residents in India.
 When an Indian National / PIO resident in India leaves for
taking up employment, etc. outside the country, his bank
account in India gets designated as NRO account.
 Repatriation is allowed up to US dollars 1 million per
calendar year for any purpose from the balances in NRO
accounts subject to payment of applicable taxes.

6. Non-Resident (External) Accounts in
Rupees [NR(E)]
 NRIs, PIOs, OCBs are eligible to open NRE Accounts. These are
rupee denominated accounts and can be in the form of savings,
current, recurring or fixed deposit accounts.
 Accounts can be opened by remittance of funds in free foreign
exchange. Foreign exchange brought in legally, repatriable incomes
of the account holder, etc. can be credited to the account.
 Joint operation with other NRIs/PIOs is permitted. Power of
attorney can be granted to residents for operation of accounts.
 Interest lying to the credit of NRE accounts is exempt from tax in
the hands of the NRI.

7. Foreign Currency (Non-Resident)
Account (Bank) Scheme [FCNR(B)]
 NRIs / PIOs / OCBs are permitted to open such accounts in US
Dollars, Sterling Pounds, Australian Dollars, Canadian Dollars,
Japanese Yen and Euro.
 The account may be opened only in the form of term deposit for
any of the following maturity periods; (a) one year and above but
less than two years, (ii) two years and above but less than three
years, (iii) three years and above but less than four years, (iv) four
years and above but less than five years, and (v) five years.
 Interest income is tax free in the hands of NRI until he maintains a
non-resident status or a resident but not ordinarily resident status
under the Indian tax laws

8. Can NRI bring Gold or Silver to India?
 NRIs can bring into India gold up to 1,000 grams, once in six
months provided they have stayed abroad for a continuous
period of six months. They are required to pay custom duty in
at the latest rate according to EXIM Policy in any convertible
foreign currency. They can pay per 10 grams of gold brought.
 NRIs are allowed to bring upto 100 kgs of silver as part of
personal luggage. This attracts import duty per kg. payable in
foreign currency (U.S. dollars if going back from the U.S.)