Remittance in nreaccount
kewalkrishanjandial
(Querist) 05 August 2012
This query is : Resolved
Dear colleagues,
A person who has a PR status in some country( Singapore) returned to india and is doing job in a MNC for the last two yrs. He was having a property at Singapore which he sold and remitted the sale proceeds in his NRE Account in Indian Rupees. Can he invest this money in NRE fixed deposit in a Bank.
Kindly advice with reference to Regulations of RBI.
Thaning you. K.K.Jandiaal
A V Vishal
(Expert) 06 August 2012
Yes he can open NRE FDR
RAJU O.F.,
(Expert) 06 August 2012
From an NRE rupee a/c amount can be transferred to an NRE Fixed Deposit a/c to earn more interest. But, as the person is residing in India please confirm as to whether his NRE status can be retained by the Bank, as he is resident in India and hence not NRE.
M V Gupta
(Expert) 06 August 2012
pl see the following instructions given by the Union Bank of India:
Non Resident External Account [NRE A/c] in brief:
NRIs and PIOs can open NRE account with an authorized bank
NRIs can opt for either a Savings NRE A/c, Term Deposit A/c, Recurring Deposit A/c, or a Current account
The NRE account can be opened or credited with remittances from abroad transfers from existing NRE/ FCNR accounts, or by deposit of foreign exchange brought into India during a visit by way of currency/ travelers cheques
Joint accounts only with another NRI & not with Residents
Zero Balance A/c can also be opened and can be funded later
Credits / Debits are governed by Exchange Control Regulations
The minimum period for a Term Deposit is 12 months and the maximum period is 10 years
The interest rate on this deposit is governed by RBI guidelines. At present Term Deposits attract interest rates equivalent to LIBOR rates plus 175 bps, normally modified every month
Interest earned under this scheme is exempt from Indian income tax
