Page 46 - Banking Finance July 2021

ARTICLE

Main Features of all the 3 accounts

Particulars NRE Account FCNR (B) Account NRO Account
Who can open an NRIs and PIOs Any person resident outside India for
account Individual/entities of Pakistan and Bangladesh shall putting through bonafide transactions in
require prior approval of the Reserve Bank of India. rupees.
Individual/entities of Pakistan and
Bangladesh shall require prior approval
of the Reserve Bank of India.
Joint account May be held jointly in the names of two or more May be held jointly in the names of two
NRIs/ PIOs. or more NRIs/ PIOs.
NRIs/ PIOs can hold jointly with a resident relative May be held jointly with residents on
on 'former or survivor' basis. 'former or survivor' basis.
Currency Indian Rupees Any permitted currency Indian Rupees
i.e. a foreign currency
which is freely convertible
Type of Account Savings, Current, Term Deposit only Savings, Current, Recurring, Fixed
Recurring, Fixed Deposit Deposit
Period for fixed From one to three For terms not less than As applicable to resident accounts.
deposits years, However, banks 1 year and not more
are allowed to accept than 5 years
NRE deposits above
three years. Some banks
offer 10 years also.
Permissible Credits Credits permitted to this account are inward Inward remittances from outside India,
remittance from outside India, interest accruing on legitimate dues in India and transfers
the account, interest on investment, transfer from from other NRO accounts are
other NRE/ FCNR(B) accounts, maturity proceeds of permissible credits to NRO account.
investments (if such investments were made from Rupee gift/ loan made by a resident to
this account or through inward remittance). a NRI/ PIO relative within the limits
prescribed under the Liberalised
Remittance Scheme (LRS) may be
credited to the latter's NRO account.
Permissible Debits Permissible debits are local disbursements, The account can be debited for the
remittance outside India, transfer to other NRE/ purpose of local payments, transfers to
FCNR(B) accounts and investments in India. other NRO accounts or remittance of
current income abroad.
Apart from these, balances in the NRO
account cannot be repatriated abroad
except by NRIs and PIOs up to USD 1
million, subject to conditions.
Funds can also be transferred to NRE
account within this USD 1 million facility.
Repatriablity Fully Repatriable. Not repatriable except for all current
income.
Balances in an NRO account of NRIs/

46 | 2021 | JULY | BANKING FINANCE