NRIs CORNER - NRI-BANK ACCOUNTS
The scent of the soil "Mitti Ki Sugandh" bonds an overseas Indian with his motherland "DIL SE" almost for an entire lifetime. While attractive interest rates and tax exemption on interest earned also builds a "DOLLAR SE" bond with India.
Besides Indian Rupee Deposits and Savings Account, Indian banks also offer facilities - attractive interest rates for NRI deposits in various foreign currencies. Earlier the facilities were available in US$s, Sterling Pounds (GBP), JYen (Japanese Yen) and DM (Deutsche Mark), which was replaced by Euro and now extended to Canadian Dollars and Australian Dollars. The principal amount as also interest are freely and fully repatriable.
While the Rupee accounts provide optional facility of savings, current savings, recurring and fixed deposits ranging from 1 year to 10 years, foreign currencies can be invested only in fixed deposits which range from 1 year to 5 years. Such NRE and FCNR deposits can be freely transferred between NRI's accounts held with 2 separate banks as also to another NRI's NRE/FCNR account.
Local funds arising out of domestic sources can be deposited in NRO account. Interest from such account is taxable and with liberalisation, the same is fully repatriable. As a mark to further liberalisation, balance in NRO accounts are also repatriable upto US$ 1 mn. per financial year.
Of late, Indian banks have unlocked the geographical barriers covering the entire nation under "Anywhere Banking Facility", "And now "Mobile banking" and "Banking on the tip of a mouse" have become common feature too.