Non-Resident External (NRE) account

2. In which currency can I open the NRE account?

      In Indian Rupees.

4. I am working in Dubai. My wife is resident in India. Can I open a NRE account jointly with her?

No. The regulations do not permit NRE accounts being opened jointly with residents.

5. Is there any way whereby operations on the account can be made without difficulty?

Yes. You may open the NRE account in your single name (since you are a non-resident Indian). You may issue a power of attorney or a mandate in favor of your wife (who is resident in India) authorizing her to operate on the NRE account. She will be allowed by us to withdraw money from the NRE account in Indian rupees to enable her to meet her expenses in rupees in India. The power of attorney holder or the mandate will not be allowed to repatriate the amount to any foreign country.

6. What are the different methods in which funds can be remitted by me to your bank for opening (or further funding subsequently) the NRE account?

You may send a foreign currency cheque or draft or international money order in favor of our bank.

CLICK HERE TO FIND OUT REMITTANCE FACILITIES

7. It was stated by you that NRE accounts can only be opened and maintained in Indian rupees. If I send the remittances in US dollar, Pound Sterling etc. then at what 'exchange rate' these amounts will be converted by you in Indian rupees?

At the T.T. buying rate prevailing on the date on which the conversion into rupees is actually made by us.

9. The account will be maintained in Indian rupees. In case I request you to allow repatriation of the money, please state at which exchange rate repatriation will be allowed?

At the T.T.selling rate prevailing on the date on which the amount is actually repatriated.

10. What about local payments from out of NRE balances?

Withdrawals from the NRE account for local payments (in rupees in India) are freely allowed. There are no restrictions. Only if the amount is withdrawn for making investments in India, the investment will be subject to the general or special permission of Reserve Bank of India (since you are a non-resident).

11. What about income tax liability on the interest earned?

The interest amounts earned on NRE account balances are exempted from Income tax.

12. What about gift tax?

Gift tax has since been abolished in India.

13. I propose to visit India shortly. At that time, can I bring U.S. dollar currency notes and travelers cheques along with me and open a NRE account with your bank?

Yes. This is permitted. The account holder will be required to visit our bank in person and tender these instruments. If the value of currency notes brought in by you from abroad exceeds US $ 5,000 or if the total value of currency notes and travelers cheques exceeds US $ 10,000 then these instruments should be declared by you in the Currency Declaration Form at the time of your entry into India. Further, the travelers cheques should be signed by you in the presence of our bank official.

14. What are the formalities to be gone through at the time of opening the NRE account?

Simple. The prescribed account opening form should be completed and signed by you. Particulars of the passport held by you should be stated for introduction purposes.

15. What about nomination facility?

This is available. You may nominate any person of your choice (resident or non-resident). In case the non-resident nominee asks for repatriation of the amount to a foreign country at a later date, the prescribed exchange control regulations should be complied with

18. What about present rates of interest?

Clink here for current rates of interest
 

19. Where can I get the prescribed application form?  Click here to Download