Non-Resident Indians (NRIs) can apply for Union Bank of India NRE accounts to maintain their foreign earnings in India. An NRE account offers tax-free interest earnings and full repatriation of funds. In this blog, we will explore interest rates, the application process, and minimum balance requirements of NRE account at Union Bank of India.
Union Bank of India: Types of NRI Accounts
Union Bank of India provides two main types of NRI bank accounts to its customers. These are-
- NRE (Non-Resident External) Savings Account
- NRO (Non-Resident Ordinary) Savings Account
In the following section of this blog, we will delve into the features and benefits of the Union Bank of India NRE savings account.
Features and Benefits of Union Bank of India NRE Account
Union Bank of India NRE Account is a bank account designed for NRIs. This account allows NRIs to deposit and manage their foreign earnings in India. Given below are the features and benefits of NRE account offered by the Union Bank of India:
| Particulars | Details |
|---|---|
| Definition | An NRE Savings account enables NRIs to hold and manage their foreign earnings |
| Currency | INR |
| Source of funding in NRE account | -Remittance from overseas in any authorized currency through banking channels -Foreign currency cheques/drafts-Fund transfers from other NRE/FCNR accounts held by the account holder or another account holder, supported by a certificate from the paying bank-Personally surrendering foreign currency or foreign currency travelers’ cheques to the bank by the account holder |
| Eligibility | -NRIs/PIOs/OCIs (excluding individuals resident in Nepal and Bhutan) -Individuals from Pakistan and Bangladesh will require prior approval from RBI |
| Tax on interest income | Interest earned is exempt from tax |
| Repatriation of funds | Both interest amount and principal are freely and fully repatriable |
| Joint operations | -Permitted with NRIs/PIOs/OCIs-With resident Indians, the joint account holder must be a close relative, and the account can only be opened on a “former or survivor” basis |
| Nomination facility | Available |
Other Benefits of NRE Account
Listed below are the additional benefits of Union Bank of India NRE account in the table format:
| Type of ATM card /Debit Card | Classic Card |
| Cost of Debit Card | –Credit card is issued free of cost -Charges will apply for annual maintenance |
| Access to Own Bank ATM | 8 transactions/month are free of cost |
| Access to Other Bank ATM | 3 transactions/month in metro cities or 5 transactions/month at other centers are free |
| ATM Cash Withdrawal Limit | Rs. 25,000/day |
| POS (Point of Sale) Limit | Rs. 50,000/day |
| Cheque Leaves | 20 leaves are free per year |
Union Bank of India NRE Account Interest Rates 2023
Here are the Union Bank of India latest NRE savings account interest rates:
| Balance in the NRE savings account | Interest rates (p.a.) |
|---|---|
| Balance up to Rs. 50 lakh | 2.75% |
| Balance above Rs. 50 lakh but below Rs. 100 crore | 2.90% |
| Balance above Rs. 100 crore but below Rs. 500 crore | 3.10% |
| Balance above Rs. 500 crore but below Rs. 1000 crore | 3.40% |
| Balance above Rs. 1000 crore | 3.55% |
Note- The above given rates are subject to change. These NRE savings account interest rates given are effective from 16 June 2023.
Minimum Balance Requirements for NRE Account
The minimum balance required for Union Bank of India NRE account is Rs. 1000 for metro and urban areas. For semi-urban and rural areas, it is Rs. 500. NRIs must maintain this minimum balance in order to avoid any penalty.
NRE Account Opening at Union Bank of India
Opening an NRE account online can be done through the bank’s website or through the SBNRI. Here are the step-by-step procedures for each method:
Through Bank’s Website
- Visit the official website of Union Bank of India.
- Go to the form center and download the Union Bank of India NRI account opening form.
- Fill out the form with your personal details and provide the necessary signatures. Make sure you fill the form in capital letters.
- Select the type of NRI account you wish to open. In this case, choose the NRE account type.
- Once the form is completed and the required documents are collected, send the account opening form and supporting documents to the address of the chosen branch.
- After verification of the documents, your account will be activated, and you can proceed with remitting funds to your NRE savings account.
Through SBNRI
You can either click on the ‘Open NRE account online’ button in this blog or follow the given below steps to apply for an NRE account:
- Download the SBNRI App and log in using your credentials.
- Click on the ‘Open NRI Account’ button and choose the preferred bank for opening an NRI account.
- Use the in-app scanning feature to scan and upload your KYC documents.
- Click on ‘Apply’ to complete the application process.
Contact SBNRI
A lot of information and documentation required to apply for NRE accounts make the account opening process lengthy and frustrating elsewhere. You can download SBNRI App to apply for an NRE account with nominal documentation in just 10 minutes.
You can also click on the button below to apply for an NRI account. Visit our blog and YouTube Channel for more details.
FAQs
Yes, Union Bank of India allows NRIs to hold a joint NRE account with another NRI. Both account holders must fulfill the eligibility criteria and provide the necessary documentation as required by the bank.
Yes, funds held in a NRE account are fully repatriable, meaning you can transfer the money back to your foreign account without any restrictions. This allows you to repatriate both the principal amount and the interest earned thereon.
