Features of Non-Resident (External) Rupee Account Scheme [NRE Account]

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. 
Indian Rupees
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.
Income earned in the accounts is exempt from income tax

Disclaimer: The views / the analysis contained therein do not constitute a legal opinion and is not intended to be an advice. Readers of this document are advised to seek their own professional advice before taking any course of action or decision, based on this document.

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