|
 |
|
|
FAQs ON NON RESIDENT INDIANS
|
|
|
View in Hindi |
|
|
FAQs ON NON RESIDENT INDIANS - Hindi
|
|
|
|
|
|
Q-1 Who is a Non-Resident Indian (NRI)
A Non Resident Indian (NRI) as per
FEMA 1999 is an Indian citizen or Foreign
National of Indian Origin resident outside
India for purposes of employment, carrying
on business or vocation in circumstances as
would indicate an intention to stay outside
India for an indefinite period. An
individual will also be considered NRI if
his stay in India is less than 182 days
during the preceding financial year. |
|
|
|
Q-2 Who qualifies to be a person of
Indian Origin?
A- A person of Indian Origin means a
citizen of any country other than Bangladesh
or Pakistan, if- (i) he at any time held an
Indian passport; or (ii) he or either or his
parents or any of his grand-parents was a
citizen of India by virtue of the
Constitution of India or the Citizenship
Act, 1955
(iii) the person is a spouse of an Indian
citizen or a person referred to in sub
clause (i) or (ii). |
|
|
|
Q-3 What are the different types of
accounts that can be maintained by an NRI ?
A- (i) Non- Resident (external) Rupee
account (NRE)-In Saving, Current, Term
Deposits.
(ii) Ordinary Non-Resident Rupee
Accounts (NRO)-In Saving, Current, Term
Deposits.
(iii) FCNR Term Deposits in US
Dollars, Pound Sterling, EURO, Canadian
Dollars, Australian Dollars, Jap.Yen. |
|
|
|
Q-4 What documents are required for
opening NRI accounts?
For opening of an NRI account, following
documents are required along with account
opening form (can be down loaded from our
website
www.sbp.co.in)
-
Passport copy
-
Visa/residence permit
-
2 photographs
-
Initial money remittance
Your signature may be verified by anyone
of the following;
-
Indian Embassy/ consulate
-
Any person known to the Bank
-
Notary public
-
Any of our offices aboard
|
|
|
|
Q-5 Can NRE/ FCNR accounts be opened
jointly ?
A-Yes, with another non –resident. |
|
|
|
Q-6 Is nomination facility available in
NRI accounts ?
A- Yes, Nomination facility is available
in all NRI accounts. The nominee can be
resident or Non-resident Indian. |
|
|
|
Q-7 Can any person in India be authorized
to operate the NRI’s account ?
A- Yes, Either by using a letter of
authority in a specified form or by giving a
Power of Attorney. The letter of authority
duly completed with the signature of the
person who is authorized to operate the
account duly attested may be handed over to
the branch when the account is opened to
operate the account. |
|
|
|
Q-8 Whether a resident Power of Attorney
holder can remit the funds out of NRE / FCNR
account to the Non –resident account holder
?
A. The RBI has allowed resident Power
of Attorney holder to remit, through normal
banking channel funds out of the balances in
NRE / FCNR account to the non-resident
account holder, provided specific powers for
the purpose have been given to the power of
attorney holder. |
|
|
|
Q-9 Can proceeds of foreign currency
notes/ traveler’s cheques be credited to NRE
accounts without any restriction?
A- Foreign currency notes/ travelers
cheques brought by the account holder from
abroad can be credited in NRE account
provided they are tendered in person. Where
the amount of currency notes tendered
exceeds USD 5000 or its equivalent or the
total amount of currency notes and TCs
tendered exceeds USD 10000 or its
equivalent, it should have been declared to
the Customs on the Currency Declaration Form
(CDF) at the time of the account holder’s
arrival in India.
Q- Can a NRI transfer funds between NRE
accounts?
A- Yes. The funds can be transferred
between NRE or FCNR accounts of an account
holder between NRE or FCNR accounts of two
different NRIs i.e the funds lying in NRE or
FCNR accounts. |
|
|
|
Q-10 what is the distinction between NRE
account and NRO account?
A- Balances held in NRE accounts can
be repatriated abroad freely, whereas funds
in NRO account are not generally reptriable.
Repartiation of balances held in NRO
accounts is allowed subject to certain
conditions. Funds remitted from abroad or
local funds which can otherwise be remitted
abroad to the account holder can be credited
to NRE accounts. Funds due to the non-
resident account holder which do not
qualify, under the Exchange Control
regulations, for remittance outside India
are required to be credited to NRO accounts.
The interest income earned on NRO accounts
attract income tax deduction at source. |
|
|
|
Q-11 What are the conditions regarding
repartiation of balances in NRO accounts?
A- NRI/ PIO may remit an amount, not
exceeding USD 1 million per financial year
out of balances held in NRO accounts / sale
proceeds of assets / the assets in India
acquired by him by way of inheritance /
legacy, on production of documentary
evidence in support or acquisition,
inheritance or legacy of assets by the
remitters, and an undertaking by the
remitter and certificate by a Chartered
Accountant. |
|
|
|
Q-12 What are the admissible credits and
debits to NRE accounts?
1. Permitted credits:
a) Proceeds of remittances to India
in any permitted currency.
b) Proceeds of personal cheque(s)
drawn by the account holder on his foreign
currency account and of travelers cheques ,
bank drafts payable in any permitted
currency including instruments expressed in
Indian rupees.
c) Proceeds of foreign currency notes
tendered by account holder during his
temporary visit to India, provided (i) the
amount was declared on a Currency
Declaration Form (CDF), where applicable,
and (ii) the notes are tendered to the
authorized dealer in person by the account
holder himself..
d) Transfers from other NRE/FCNR
accounts.
e) Interest accruing on the funds
held in the account.
f) Interest on Govt. securities and
dividend on units of mutual funds, provided
the securities/units were purchased by debit
to the account holder’s NRE/FCNR account or
out of inward remittance through normal
banking channels..
g) Maturities proceeds of Government
securities including National Plan/Saving
Certificates as well as proceeds of
Government securities and units of mutual
funds sold on a recognized stock exchange in
India and sale proceeds of units received
from mutual funds, provided the securities/
units were originally purchased by debit to
the account holder’s NRE/FCNR account or out
of remittances received from outside India
in free foreign exchange.
h) Refund of share/debenture
subscriptions to new issues of Indian
companies or portion thereof, if the amount
of subscription was paid from the same
account or from other NRE/FCNR account of
the account holder or by remittance from
outside India through normal banking
channels.
i) Refund of application/earnest
money made by the house building agencies on
account of non-allotment of flat/plot,
together with interest, if any (net of
income tax payable thereon), provided the
original payment was made out of NRE/FCNR
account of the account holder of remittance
from outside India through normal banking
channels and the authorized dealer is
satisfied about the genuineness of the
transaction.
2. Permitted Debits:
a) Local disbursements.
b) Remittances outside India.
c) Transfer of NRE/FCNR accounts of
the account holder or any other person
eligible to maintain such account.
d) Investment in
share/securities/commercial paper of an
Indian company for the purchase of immovable
property in India provided such
investment/purchase is covered by
regulations made, or the general/special
permission granted, by the Reserve Bank.
e) Any other transaction if covered
under general special permission granted by
the Reserve Bank. |
|
|
|
Q-13 Can NRE/ FCNR fix-deposits be closed
prematurely?
A- NRE & FCNR fix deposits with the
Bank can be closed prematurely. No interest
is payable if the deposit has not run for a
minimum period of one year. If the deposit
is kept for over one year, interest will be
paid at the rate applicable for the period
for which it has run less a penalty of 1 % . |
|
|
|
Q-14 Whether the penalty be waived if the
deposit is pre-maturely closed for renewal
of deposit for a longer period than the
remaining period of the original Deposit?
A- Yes, No penalty is levied if the
deposit is closed prematurely for further
renewal for a longer period than the
remaining period of the original deposit. |
|
|
|
Q-15 What are the Investment
opportunities & Facilities available to
Non-residents?
A- NRIs / PIOs have various
opportunities of investment in India both on
non-repatriation as well as repatriation
basis, which are as under: -
1. Direct Investment in trade and industry
(or FDI).
2. Maintenance of bank accounts in India.
3. Investment in immovable properties in
India.
4. Investment in securities / shares/ mutual
funds and deposits with Indian firms /
companies, etc. |
|
|
|
Investment in movable property
|
|
Q-16 Do NRIs / PIOs require permission of
Reserve Bank of India to acquire residential
/ commercial property in India?
A- No. Reserve bank of India has granted
general permission to foreign citizens of
Indian origin, and NRIs except for citizens
of Pakistan, Bangladesh, Sri Lanka,
Afghanistan, China, Iran and Nepal, to
purchase immovable property in India for
their bonafide residential purpose. They
are, therefore, not required to obtain
permission of RBI. |
|
|
|
Q-17 Can sale proceeds of such property
sold be remitted out of India ?
A- The sale proceeds of such property
acquired in India to the extent of
repatriable funds used for acquiring the
property, up to two residential properties
can be repatriated. The balance amount will
be repatriable through NRO account subject
to payment of taxes and obtention of
certificate from Chartered Accountant. |
|
|
|
Q-18 Can an NRI / PIO gift his property
in India to another NRI / PIO ?
Yes. An NRI / PIO can gift his property to
another NRI / PIO. |
|
|
|
Q-19 Can an NRI/ PIO acquire immovable
property by inheritance from a person
resident out side India ?
A-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-20 whether the residential / commercial
properties be given on rent if not required
for immediate use?
A-Yes. Reserve Bank of India has granted
general permission for letting out any
immovable property in India. The rental
income or proceeds of any investments of
such income are eligible for repatriation. |
|
|
|
Q-21 How should the NRI / PIO pay for
acquiring of property in India?
A- The property should be paid for by
funds remitted to India through normal
Banking Channel or funds held in NRE/ FCNR/
NRO account. Such payment cannot be made
either by traveler’s cheque or by foreign
currency notes. |
|
|
|
Q-22 Can refund of application money /
purchase consideration by the vendor on
account of non-allotment of flat together
with interest be credited to NRE account?
A- Yes, provided original payment was
made by inward remittance or by debit to NRE
account. |
|
|
|
Q-23 Can NRI / PIO avail of a house loan
for purchase of residential accommodation or
for repairs, renovation or improvement of
the residential accommodation?
A- Yes, NRI / PIO can avail house loan
for the purchase of residential house/
construction, repairs and renovation. |
|
|
|
Q-24 How the house loan availed from Bank
can be repaid?
A- The house 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. Such loans can also be repaid by
the borrower’s close relatives through their
accounts in India. |
|
|
|
Q-25 Can sale proceeds of residential
property acquired by availing a rupee loan
be repatriated?
A- Yes, provided the loan was repaid
by inward remittance or by debit to NRE/
FCNR account. |
|
|
|
Q-26 Can sale proceeds of immovable
property inherited by an NRI / PIO from a
resident Indian be repatriated?
A- Yes. Sale proceeds not exceeding USD
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 and
Bhutan. |
|
|
|
Q-27 Can sale proceeds of immovable
property inherited by an NRI / PIO from a
person resident outside India be repatriated
abroad?
A- No. Prior approval of RBI is
necessary with documentary evidence in
support of inheritance and tax clearance /
no objection from IT authority. |
|
|
|
LOAN AGAINST THE SECURITY OF BANK DEPOSITS |
|
Q-28 Can Rupee loans be taken against NRE/
FCNR deposits in India by the depositors
himself or to third parties and for what
purpose?
Yes, Rupee loan can be taken against the
security of NRE / FCNR deposit in India by
depositor himself or to third party.
(i) The loan can be taken for personal
purposes or for carrying business
activities.
(ii) For direct investment in India on non-
repatriation basis by way of contribution of
the capital of India firms / companies.
(iii) For acquisition of a flat / house in
India for own residential use. |
|
|
|
Q-29 Are there any prohibition for the
purpose for which the loan is taken?
A- The loan cannot be used for the
purpose of re-lending, carrying on
agriculture or plantation activities or for
investment in real estate business. |
|
|
|
Q-30 Is there any restriction on quantum
of advance against NRE /FCNR (B) deposits?
A- Yes, Banks are prohibited from
granting fresh loan or renewing loans in
excess of Rupees twenty (20) lakhs against
NRE and FCNR deposits either to the
depositors or third parties with effect from
January 31, 2007. |
|
|
|
Foreign Currency Accounts |
|
Q-31 What type of accounts are permitted
to be opened in Foreign Currencies?
A- Accounts in foreign currencies (FCNR-B)
can be maintained only in the form of ‘Term
Deposits’ for a fix period ranging from 1
year up to 5 years in six currencies viz ;
US Dollars, Pound Sterling, EURO, Canadian
Dollars, Austrian Dollars, and Jap.Yen. |
|
|
|
Q-32 What are maturity slabs prescribed
by RBI under FCNR (B) deposits?
A- Five maturity slabs have been
prescribed by RBI for maintaining FCNR (B)
accounts as under :-
(i) 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
(v) Five years only. |
|
|
|
Q-33 What is manner of payment of
interest in FCNR (B) deposits?
A .The interest on the deposits accepted
under the scheme is paid on the basis of 360
days to a year.
ii) The interest on FCNR (B) deposits is
calculated and paid in the manner indicated
below:-
a) For deposits up to one year, at the
applicable rate without any compounding
effect.
b) In respect of deposits for more than 1
year, at intervals of 180 days each and
thereafter for the remaining actual number
of days. However, the depositor has the
option to receive the interest on maturity
with compounding effect. |
|
|
|
Q-34 What is the status of FCNR (B)
accounts on the return of the account holder
to India?
A- Banks would treat the deposits
held in FCNR accounts as resident deposits
but continue to pay interest at the
contracted rate till maturity of the
deposit. Premature withdrawal of such
deposits is subject to penalty. However, no
penalty is is applicable in case of
pre-mature conversion of balances held in
FCNR (B) deposits into RFC accounts on their
return to India. |
|
|
|
Q-35 Whether the proceeds of FCNR (B)
deposits can be remitted to third parties on
maturity?
A- Yes, Banks have been permitted for
remittance of the maturity proceeds of FCNR
(B) deposits to third parties outside India,
provided the transaction is specifically
authorized by the account holder and the
Bank is satisfied about the bonafides of the
transaction. |
|
|
|
Resident Foreign Currency (RFC) Account |
|
Q-36 What is the Resident Foreign
Currency (RFC) Accounts Scheme?
A- This is a Scheme by RBI permitting
persons of Indian nationality or origin, who
have returned to India on or after 18th
April 1992 for permanent settlement
(Returning Indians), after being NRI for a
continuous period of not less than one year.
|
|
|
|
Q-37 What type of funds can be credited
to RFC accounts of Returning Indians?
A. The entire amount of foreign
exchange brought to India at the time of
their return to India for permanent
settlement as well as the balances standing
to the credit of their NRE and FCNR accounts
at the time of return can be credited to RFC
accounts. However, the foreign exchange
brought to India in the form of foreign
currency notes/bank notes/T.cheques
should have been declared to Customs at the
time of arrival on the Currency Declaration
Form. If it exceeds the prescribed limits. |
|
|
|
Q-38 Can income received from their
overseas assets in the form of dividends
etc. or sale proceeds of such assets be
credited to RFC accounts?
A- Yes. The entire income from such
assets or sale proceeds of such assets
repatriated to India can be credited to RFC
accounts. |
|
|
|
Account opened by Foreign Nationals and
Foreign Tourists |
|
Q-39 Can foreign nationals resident in
India open resident account?
B- Yes. Foreign nationals resident in
India can open and maintain resident Rupee
account in India. |
|
|
|
Q-40 Can Authorized Dealers-Category I
repatriate the proceeds of such accounts on
closure?
A- Yes. But AD-Category I banks will
only ensure that the funds to be repatriated
outside India were either received from
abroad or are repartriable in nature or are
permissible for repatriation. |
|
|
|
Q-41 Can foreign tourists open a Bank
account in India during their short visit?
A- 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. Such account
can be opened upto a maximum period of 6
months. |
|
|
|
Q-42 What credits can be made to such
accounts?
A- Funds remitted from outside India or
those obtained by sale of foreign exchange
brought by the tourists to India can be
credited in NRO account. |
|
|
|
Q-43 Can the NRO account be used for
making local payments?
A- Yes. Tourists can freely make
local payments by debit to the NRO account. |
|
|
|
Q-44 Can foreign tourists repatriate the
balance held in their NRO account at the
time of departure from India?
A- Yes. Banks can 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. |
|
|
|
Q-45 What can be done to repatriate the
proceeds of an account that has been
maintained for more than six months?
A- In such cases, applications for
repatriation of balance may be made on plain
paper to the concerned Regional Office of
Reserve Bank. |
|
|
|
ATM OPERATIONS |
|
Q. 1 What is an Automated Teller Machine
(ATM)?
Ans. 1. Automated Teller Machine is a
computerised machine that provides the
customers of banks the facility of accessing
their accounts for dispensing cash and to
carry out other financial transactions
without the need of actually visiting a bank
branch. |
|
|
|
Q. 2. What type of cards can be used at
an ATM?
Ans. 2. The ATM cards/debit cards,
credit cards and prepaid cards(that permit
cashwhdrawal) can be used at ATMs for
various transactions. |
|
|
|
Q. 3. What are the services/facilities
available at ATMs?
Ans. 3. In addition to cash
dispensing ATMs may have many
services/facilities such as:
• Account information
• Cash Deposit
• Regular bills payment
• Purchase of Re-load Vouchers for Mobiles
• Mini/Short Statement
• Loan account enquiry etc.
The services offered may vary from bank to
bank, or may depend on the capacity of the
machine to provide such services. |
|
|
|
Q.4. How can one transact at an ATM?
Ans. 4. For transacting at an ATM,
the customer insert (swipe) their card in
the ATM and enter their Personal
Identification Number (PIN). |
|
|
|
Q.5. Can these cards be used at any bank
ATM in the country?
Ans. 5. Yes. The cards issued by
banks in India should be enabled for use at
any bank ATM within India. |
|
|
|
Q.6. What is a Personal Identification
Number (PIN)?
Ans 6. PIN is the numeric password
for use at the ATM. The PIN is separately
mailed/handed over to the customer by the
bank while issuing the card. This PIN has to
be reset to a new PIN by the customer. Most
banks force the customers to change the PIN
on the first use.
The PIN number should not be written the
card, card holder etc as in such cases the
card can be misused if card is lost/stolen.
|
|
|
|
Q. 7. What should one do if he forgets
PIN or the card is sucked in by the ATM?
Ans. 7. The customer may contact the
card issuing bank branch and apply for
retrieval/issuance of a new card. This
procedure is applicable even if the card is
sucked in at another bank's ATM. |
|
|
|
Q. 8. What should be done if the card is
lost/stolen?
Ans. 8. The customer may contact the
card issuing bank immediately on noticing
the loss so as to enable the bank to block
such cards. |
|
|
|
Q. 9. Is there any minimum and maximum
cash withdrawal limit per day?
Ans. 9. Yes, banks set limit for cash
withdrawal by customers. The cash withdrawal
limit for use at the ATM of the issuing bank
is set by the bank during the issuance of
the card. This limit is displayed at the
respective ATM locations.
For cash withdrawals at other bank ATMs,
banks have decided to maintain a limit of Rs
10,000/- per transaction. This information
is displayed at the ATM location. |
|
|
|
Q. 10. Do banks levy any service charge
for use of other bank ATMs?
Ans.10. No charges are payable for
using other banks' ATM for cash withdrawal
and balance enquiry, as RBI has made it free
under its "Free ATM access policy" since
April 01, 2009. But banks can restrict the
number of such free transactions to a
maximum of five per month. For transactions
beyond this minimum number of transaction,
banks charge maximum of Rs 20/- per
transaction. |
|
|
|
Q. 11. What should be done in case during
the cash withdrawal process, cash is not
disbursed by the account gets debited for
the amount?
Ans.11. The customer may lodge a
complaint with the card issuing bank. This
process is applicable even if the
transaction was carried out at another banks
ATM. |
|
|
|
Q.12. How many days maximum would the
bank require to re-credit the account for
such wrong debits?
Ans.12. As per the RBI instructions,
banks may re-credit such wrongly debited
amounts within a maximum period of 7
working days. |
|
|
|
Q.13. Are the customers eligible for
compensation for delays beyond 7 working
days?
Ans.13. Yes. Effective from 1st July,
2011, banks shall have to pay customers Rs
100/- per day for delays beyond 7 working
days. This shall have to be credited to the
account of the customer without any claim
being made by the customer. |
|
|
|
Q.14. In case the compensation is not
credited as mandated, what recourse does the
customer have?
Ans. 14. For all such complaints
customer may lodge a complaint with the
local Banking Ombudsman if the bank does not
respond. |
|
|
