Non-Residents’ (NR) Bank Accounts:
Before we know about the accounts that can be maintained by Non-resident Indians (NRIs) or Person of Indian origin (PIOs) and Overseas Citizens of India (OCIs), it is important to know following terms:
‘Authorized bank’ means a bank including a co-operative bank (other than an authorized dealer) authorized by the Reserve Bank to maintain an account of a person resident outside India;
‘Authorized dealer’ means a person authorized as an authorized dealer by Reserve Bank of India under sub-section (1) of section 10 of the Foreign Exchange Management Act, 1999 ;
‘Permissible currency’ means a foreign currency which is freely convertible;
“Relative” w.r.t. NRI or PIO or OCI herein means
- Members of HUF
- Husband/ Wife
- Father (including step father), Mother (including step mother), Son, Son’s wife, Daughter, Daughter’s husband, Brother (including step brother), Sister (including step sister).
A NRI, PIO or OCI can open & maintain following bank accounts in India as permitted under Foreign Exchange Management Act, 1999 (FEMA) and regulations made thereunder:
- ‘FCNR (B) account’ means a Foreign Currency Non-Resident (Bank) account and can be opened and maintained by NRIs, PIOs and OCIs with an authorized bank or authorized dealer.
- ‘NRE account’ means a Non-Resident External account and can be opened and maintained by NRIs, PIOs & OCIs with authorized dealers and with banks (including cooperative banks) authorized by the Reserve Bank to maintain such accounts.
The account can be opened by the non-resident account holder himself and not by the holder of the power of attorney in India.
The accounts may be maintained in any form, e.g. savings, current, recurring or fixed deposit account etc.
- ‘NRO account’ means a Non-Resident Ordinary account and can be opened and maintained by NRIs and PIOs with an authorized bank or authorized dealer subject to certain restrictions as mentioned hereinafter under operation of NRO accounts.
- ‘SNRR account’ means a Special Non-Resident Rupee account and can be opened and maintained by any person resident outside India, having a business interest in India, with an authorized dealer for the purpose of putting through bona fide transactions in rupees.
(See –Operation & Incentives to Bank Accounts by NRIs, PIOs & OCIs) for the details about the opening & operations in each of the above mentioned Bank Accounts, Permissible deposits & withdrawals therefrom, Remittances & Repatriation out of India, Taxability of the interest income from these accounts and other details about the operation of these accounts.