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