NRI's CORNER
F.E.M.A.
NON-RESIDENT (NON-REPATRIABLE) - NRNR (uptill 01/04/2002)
NRI's CORNER - NON-RESIDENT (NON-REPATRIABLE) DEPOSIT ACCOUNT - NRNR
 
 
NRNR ACCOUNTS ARE DISCONTINUED SINCE 01/04/2002 .
A Non Resident Non Repatriable account could be opened and maintained by any person resident outside India (other than individuals or entities of Pakistan/Bangladesh) including an NRI being a citizen of India or a foreign citizen of Indian origin residing outside India .
Scheme of NRNR accounts is discontinued from 1-4-2002 , The accounts were non-convertible / non-repatriable and were maintained in Indian rupees in the form of savings, current and recurring or fixed deposit accounts.
 
The Reserve Bank of India 's  Notification No. FEMA 52/RB-2002 dt.1st March, 2002 notifying "Full Convertibility of Deposit Schemes For Non Resident Indians" has discontinued the said schemes w.e.f. 01/04/2002. Hence, no fresh deposits will be accepted nor existing deposits will be renewed on or after 01/04/2002 . Existing deposits upon maturity will be converted to NRE account at the option of the account holder but premature encashment of deposits was not eligible for such credit and balance in such case could be deposited in NRO account.
 
Provisions as regards eligibility, types of accounts, permitted debits / credits, rate of interest, Loans against the security of funds held in NRNR account, change of residential status of account holder, and miscellaneous matters such as joint holding, operations by POA etc. were provided under Schedule-4
 
 
1.                  Non Resident (Non-Repatriable) [NRNR] deposits were governed by Foreign Exchange Management (Deposit) Regulations, 2000.
.01           As the name suggests, NRNR deposits were deposits designated in Indian Rupees.
.02           NRNR deposits were accepted for the tenure of 6-12 months, 12-24, 24-36 months and 36 months.
.03           An individual Non Resident Indian (NRI) and Overseas Corporate Body (OCB) were eligible to open and maintain NRNR account till 31-03-2002 .
 
2.                  Definitions :
.01           "Non Resident Indian” means an Indian citizen or a foreign citizen of Indian origin (excluding citizens of Bangladesh and Pakistan )  residing outside India .
.02           "Person of Indian Origin"means an Indian citizen or a foreign citizen who;
       i)   at any time held an Indian Passport, or
       ii) himself or his parents or grand parents were citizens of India , or
       iii) is a spouse of an Indian citizen, or
       iv) is a spouse of person referred to in (i) or (ii) above.
.03           "Overseas Corporate Body" means a Company, Partnership Firm, Society wherein 60 % or more ownership lies with NRIs or a Trust wherein 60 % or more financial interest is irrevocably held by NRIs.
.04           "NRNR Account" means a Non-Resident Non-Repatriable account referred to in clause (iv) of sub-regulation (1) of Regulation 5; 
 
 
 
FEATURES OF NRNR
 
1.
ELIGIBILITY 
Any person resident outside India (other than individuals or entities of Pakistan/Bangladesh) including an NRI who is a citizen of India or a person of Indian origin residing outside India as also Overseas Corporate Bodies (OCBs).
2
CURRENCY
Indian Rupees only.
3.
MODE OF DEPOSITS
By way of transfer of funds from abroad or from existing NRE/FCNR Account.
4
PERIOD
6 Months to 36 Months.
5.
REPATRIABILITY 
Interest being current income Repatriable subject to payment of tax.
Principal amount -originally Non Repatriable but total balance transferable to NRE account upon maturity with effect from 1-04-2002 .
6.
INTEREST
Compounded Quarterly.
7.
JOINT HOLDING             
Permissible with NRIs and Resident.
8.
NOMINATION 
Permissible, NRIs as well as Residents.
9.
LOAN FACILITY  
Available to depositor as well as third party residents in India.
10.
RENEWAL / TRANSFER 
The account can also be shifted from one authorized dealer to another.
11.
PREMATURE     WITHDRAWAL
Permissible - However 
For period of less than 6 Months   -   No Interest payable,
Above 6 Months   -   Subject to Penalty - As per Bank Rules.
12
EXCHANGE RATE OF REMITTANCE
At Banks Buying/ Market Rate of Exchange.
13.
TAXABILITY 
.01 Interest exempt from Income Tax. 
.02 Balance not subject to Wealth Tax.
.03 No Gift Tax provisions in India . However w.e.f. 1-4-2006   amount received in excess of Rs.50,000 by way of gifts from persons other than specified relatives is included in donee’s income and chargeable to income tax.
Interest taxable as soon as account holder looses status of 'non resident' as defined under I.T. Act, 1961.
14.
VARIOUS TYPES OF ACCOUNT
Saving, Current, Recurring,  or Fixed deposit account.
 
       
         
 
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