|Particulars||Non-Resident (External) Rupee Account Scheme [NRE Account]|
|Who can open an account||NRIs and PIOs|
|Joint account||May be held jointly in the names of two or more NRIs/ PIOs.
NRIs/ PIOs can hold jointly with a resident relative on ‘former or survivor’ basis. The resident relative can operate the account as a Power of Attorney holder during the life time of the NRI/ PIO account holder. |
|Type of Account||Savings, Current, Recurring, Fixed Deposit|
|Period for fixed deposits||From one to three years, However, banks are allowed to accept NRE deposits above three years from their Asset-Liability point of view|
|Permissible Credits||Credits permitted to this account are inward remittance from outside India, interest accruing on the account, interest on investment, transfer from other NRE/ FCNR(B) accounts, maturity proceeds of investments (if such investments were made from this account or through inward remittance).
Current income like rent, dividend, pension, interest etc. will be construed as a permissible credit to the NRE account.
Care: Only those credits which have not lost repatriable character and subject to TDS, if applicable |
|Permissible Debits||Permissible debits are local disbursements, remittance outside India, transfer to other NRE/ FCNR(B) accounts and investments in India.|
|Taxabilty||Income earned in the accounts is exempt from income tax|