FOREIGN CURRENCY ACCOUNTS

Presented by Archana Manhas

FOREIGN CURRENCY ACCOUNT FOR NRIS

A NRI account can be opened in 2 forms Ordinary Non-Resident Rupee (NRO) Account - NRIs can open NRO account for transactions in rupees without any approval. It can be maintained in the nature of current, savings, recurring or fixed deposit account. NRIs may also open this account jointly with residents. Documents to be submitted: Passport & Residence Visa / ID Card Copies duly attested by Banker / Notary Public / Indian Embassy / A person known to the bank. Two passport size photos Initial deposit of Rs.1000

 Savings account interest rates

Interest rate 4.00%

Contd..

NRO Fixed Deposits

7 days to 90 days 91 days to 179 days 180 days to 240 days 241 days to less than 1 year 7.00 7.25 7.00 7.75 9.25 9.25 9.25 9.25

1 year to less than 2 years 2 years to less than 3 years 3 years to less than 5 years

5 years and up to 10 years

Non-Resident External (NRE) Rupee Account NRE account may be opened without any approval if the funds for this account are transferred in freely convertible foreign currency. NRIs may jointly open this account with another NRI. This account can be maintained in the form of saving or current or recurring or fixed deposit account. Balances held in this account and any interest earned on this account are exempt from tax. NRE TERM DEPOSITS (BELOW RS. ONE CRORE)
Period 1 yr to 10 yrs % p.a 9.25

NRE TERM DEPOSITS-BULK DEPOSITS (RS. ONE CRORE & ABOVE)

PERIOD 1 year to less than 2 years 2 years to 10 years (% p.a) 9.00 8.75

Savings account interest rates

1yr.to less than 2 yrs 2yr to less than 3 yrs 3yr to less than 5 yrs 3.69 % 3.36% 3.52%

Foreign Currency (Non Resident) Account (FCNR A/C)

FCNR A/C is maintained only in term deposit.The account can be maintained only in Pound Sterling, U.S. dollar, Deutsche Mark and Japanese Yen. The deposit is accepted for a period not below six months and not above five years. Remittance from abroad is to be made in the foreign currency in which the account is desired to be maintained. The balances and the interest on this account are exempt from tax .

Interest rates for FCNR A/C

Particulars U.S. $
PERIOD OF THE DEPOSIT 1 year and above but < 2 years 2 years & above, but < 3 years 3 years & above, but < 4 years 4 years & above, but < 5 years 5 years 2.51 3.00 2.81 2.71 5.57 1.75

EURO
RATE

GBP

CAN$

AUD

JYEN

RATE

RATE

RATE

RATE

RATE

2.38

3.16

3.12

3.06

6.13

1.80

2.00

2.57

2.59

2.39

5.14

1.63

2.11

2.64

2.62

2.47

5.18

1.65

2.30

2.80

2.71

2.58

5.45

1.70

COMPARISON ABOUT ALL THE SCHEMES

Accounts NRE NRO FCNR

Purpose of account

To park overseas savings To park overseas savings To park overseas savings remitted to India after converting remitted to India after converting without converting into Rupees to Rupees to Rupees and Indian earnings Rupees Rupees USD, GBP, EUR, AUD, CAD, JPY USD 1000 or equivalent

Currency

Minimum Balance

Rs. 1,000

Rs. 1,000

Type of account

Savings, Current, TDR ,STDR Min: 1 Year Max: 10 Years Only with NRIs

Savings, Current, TDR, STDR Min: 7 Days Max: 10 Years Both with Resident and NRIs Up to USD 1 million (Conditional) Freely Repatriable subject to deduction of tax

TDR, STDR Min: 1 Year Max: 5 Years Only with NRIs

Investment Term

Joint Holding

Repatriability of Principal

Freely Repatriable

Freely Repatriable

Repatriability of Interest

Freely Repatriable

Freely Repatriable

Taxability in India

Interest income tax free in India

Interest income is taxed as per Interest income tax free in India India Income Tax Rules.