What are the benefits of opening an NRI Account?
SBNRI Team
answered on 22/03/2020
The benefits of opening an NRI Account are as follows:
- Deposit money in INR or any Foreign Currency and earn tax-free interest upto 7.95%* for NRE and up to 3.05%* for FCNR (Foreign Currency Non-Resident) Accounts
- The interest earned on the deposit is not taxable in India
- Earn a higher rate of interest as compared to the local banks abroad
- Both the principal amount and the interest are fully and freely repatriable for NRE and FCNR Accounts
Can OCIs have an NRI Account?
Yes, OCIs can open NRE/NRO/FCNR accounts in India as they are entitled to similar benefits as NRIs. OCIs can also enjoy the benefits of opening an NRI Account. Here is an overview of the accounts for you to choose the best account as per your needs:
Factors to consider | Non Resident External (NRE) Account | Non Resident Ordinary (NRO) Account | Foreign Currency Non Resident (FCNR) Account | |
Purpose | For income earned outside India | For income earned from India (pension, rent etc.) | Foreign Currency Investment in India | |
Currency | INR | INR | USD, GBP, EUR, JPY, CAD, AUD, SGD, HKD and CHF | |
Tenure of Deposits | 1 year to 10 years | 7 days to 10 years | 1 year to 5 years | |
Interest | Up to 7.25%* | Up to 7.30%* | Up to 3.05%* | |
Repatriation (transfer of money from Indian bank account to foreign bank account) | Both Principal (money invested initially) and Interest completely repatriable | Up to a maximum of 1 million USD per financial year | Both Principal and Interest completely repatriable | |
Tax Deductions | No tax | Tax on Interest earned (not on principal amount): 30% tax + surcharge + education cess will be deducted at the source of interest earned in India | No tax | |
Related Questions
SBNRI Team
answered on 23/03/2020
Yes, NRIs can apply for Pan Card online through either of the processes: Instant PAN Allocation in 10 minutes through Aadhar Card: Go to Income Tax Department’s e-filing portal Click on “Instant Pan through Aadhar” section under “Quick Links” Enter and Validate Aadhar Details and otp received on the registered mobile number Download […]
SBNRI Team
answered on 23/03/2020
No, you cannot deposit INR cash in an NRE account because NRE accounts are used to maintain the income earned outside India. Permissible Credits in the NRE Account There are certain permissible credits in an NRE Account, which are: Inward remittance from outside India Interest earned on the money deposited in the NRE account […]
SBNRI Team
answered on 23/03/2020
Credits refer to the money that can be deposited in an account. The permissible credits in an NRO Account are listed below. Permissible Credits in an NRO Account: Inward Remittances from outside India Interest earned on the NRO account balance Gifts in INR or loans taken from any resident or NRE/NRO account holder […]
SBNRI Team
answered on 31/03/2020
Yes. An NRI can have multiple demat accounts. The usage of these multiple demat accounts can be understood under the concepts of: Repatriation: NRIs must have separate demat accounts for repatriable (NRE) and non-repatriable (NRO) shares which means if you invest through your NRE account, the money you receive after selling the shares/stocks is completely […]
