NRI's CORNER - NON-RESIDENT (SPECIAL) RUPEE ACCOUNTS – NRSR

NRSR accounts discontinued since 01/04/2002 .

Non Resident Special Rupee [NRSR] Account could be opened and maintained by an NRI being a citizen of India or foreign citizens of Indian origin residing outside India. 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.1-4-2002.  Hence, no fresh deposits will be accepted nor existing deposits will be renewed on or after 1-4-2002.  Existing deposits upon maturity will be converted to NRO account at the option of the account holder.

Provisions as regards eligibility, types of accounts, permitted debits / credits, rate of interest, Loans against the security of funds held in NRSR account, change of residential status of account holder, repatriation of funds by NRI nominee, and miscellaneous matters such as joint holding, operations by POA etc. are provided under Schedule-5 

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      "NRSR Account" means a Foreign Currency Non-resident (Bank) account referred to in clause (ii) of sub-regulation (1) of Regulation 5

FEATURES OF NRSR