Tuesday, March 19, 2019

A glimpse about the NRI Banking

Credit: S2NRI
NRI Banking

NRI banking is an important slice of any bank's portfolio. It is assumed that transfers from abroad constitute 3 % of India's GDP.

In a globalized, networked world, where business and commerce has moved from the traditional 8 hour work day, geographies and boundaries have dissolved in the face of technologies. Post liberalization, India has moved on to a less stringent exchange regime and this has made it easier for the NRIs (Non Resident Indians) to remit funds back home.

Every year, Indians living abroad use 3 types of NRI accounts to transfer funds. It's believed that remittances from NRI's abroad to India in 2010-2011 were to the tune of 55 billion US dollars.

NRI's can operate three kinds of accounts in India. All the major Indian banks, both public sector and private offer these accounts to their customers. Online money transfer from these accounts has drastically reduced the time taken for the funds to be transferred to India.

Non Resident External accounts: NRE

  • Funds In these accounts are held in Rupees
  • NRIs can open these accounts
  • Funds from abroad can be deposited in this account
  • This type of account can be held jointly
  • Funds in this account can be remitted to any country without requiring prior permission from the RBI.
  • Nominations can be made for this type of accounts
  • The interest earned on income is not subject to income tax in India.

Non Resident Ordinary accounts: NRO

  • This account can be opened by an NRI or even a resident before becoming an NRI
  • NRO accounts can only contain funds received in India
  • The funds cannot be remitted abroad of to another NRE account
  • NRO accounts can be held jointly by a resident and an NRI
  • Interest earned on deposits in an NRO account are taxable as per prevailing rates in India

Non-Resident Foreign Currency Account: FCNR

This allows NRIs/PIOs to invest in deposits in India, in foreign currency. The idea is to protect the NRIs from fluctuations in the exchange rate. Currently FCNR deposits can be maintained in 6 currencies.

  • US Dollars $
  • Euros ?
  • British Pounds £
  • Australian Dollars
  • Canadian Dollars
  • Japanese Yen ¥

FCNR accounts are an attractive way for NRIs to get a good rate of interest on their deposits.

  • They can only be opened by NRIs
  • The term is between 1-5 years
  • These accounts can be held jointly
  • Nomination facility is available
  • Loans can be availed against these deposits; however these loans are restricted in their use and amounts, by the law.
  • The interest earned on the deposits is not taxable in India.
  • The principal deposit is not taxed as Wealth Tax in India
  • An overdraft of up to 90% of the deposit or 1 crore INR, whichever is more, is generally given to a FCNR account.

With the spread of the internet and the increased use of information technology, more and more NRIs are using online money transfer to send money to their near and dear in India.

About the Writer

Here i am kim Gill a Professional content writer in Mumbai, India. Being a tech savvy I love to explore internet and taking services online. I like to avail and write about online services that can help a person in its day to day life.
Want to write articles too? Sign up & become a writer!

1 comments on A glimpse about the NRI Banking

Log In To Vote   Score: 1
By winner on November 19, 2014 at 03:06 am

For accouterments to be low priced,it is consistently bigger to dior replica biking for something artificial or erected out of wood.Silver,gold or clear will amount you ample money,but it varies aloft the wishes of the alignment whether it needs equipments low amount or important.The approaching allowance angle would be gift vouchers.Whether the agenda is to a bazaar or a baby boutique or louis vuitton replica a accomplishment awards all-encompassing accumulate hoard,gift vouchers are consistently adorable and liked.Besides,the vouchers are far bigger than trophies back you would get amusement from the aforementioned by creating a few advantageous get.If your action is not apprenticed by cheap,again proffering airing biking certificate would be arresting accomplishment awards.Your cadre will absolutely admire the lv replica aforementioned and they will be contented to yield their ancestors to chanel outlet a baby amount of city-limits for alone some canicule and nights.It is absolutely a big way to enhance and actuate recruits and instil aplomb in them.The endure angle would be tickets to some actual aberant proceedings.If a absolute brilliant is accessible to your region,again accompany a few biking certificate for chanel replica your artisan and his ancestors affiliate for the incident.This is a absorbing address of allowing your has to bacchanal in weekends at a baby amount of indigenous works.Hence,the industries offerings can be of a endless concepts and it depends aloft the ambit of the group,which class accumulation of replica watches uk action will be elected.Putting on an 18-carat and adult Swiss watch signifies continuing out central a atom arranged with bodies and exuding allure.Although the exchange is complete of a ambit of watches,montre breitling bentley access the clue almanac of currently acceptable important above and fashionable.

 Report abuse

Add A Comment!

Click here to signup or login.

Rate This Article

Your vote matters to us