NRI Fixed Deposits FAQs
What is NRI banking and what are different types of NRI Fixed Deposits which can be maintained by a NRI/PIO in India?
With a view to attract the savings and other remittances into India through banking channels from the person of Indian Nationality/Origin commonly known as Non Resident Indians (NRI), Person of Indian Origin (PIO) or Overseas Citizen of India (OCI), who are residing outside India and bolster the balance of payment position, the Government of India introduced Non-Resident(External) Account Rules in 1970 which are governed by the Exchange Control Regulations. NRIs, PIOs and OCIs residing overseas can open and maintain bank accounts known as NRI bank account in India with an authorised dealer or co-operative bank or any other bank or public financial institution which is specially authorised or exempted or permitted in this behalf by the Reserve Bank under the Act without seeking any permission from the Indian government authorities.
An NRI/PIO can maintain an NRO Fixed Deposit (Non-Resident Ordinary Rupee Deposit), NRE Fixed Deposit (Non-Resident External Rupee Deposit) or FCNR (B) account (Foreign Currency Non-Resident Bank Account) with any bank in India.
Compare at nriDealExpert.com to find out the best NRO fixed deposits or NRE fixed deposits in India.
What is a NRE fixed deposit account?
The Non-Resident External Fixed Deposit Account (NRE Fixed Deposit) is a fixed deposit held in India, in Indian Rupees. The foreign currency earnings can be deposited into the NRE fixed deposit account by transfers from your country of residence or transfers from other NRE accounts in India. To open NRE fixed deposit, you need to first transfer money to your NRE savings account (USD to INR, GBP to INR, CAD to INR, AUD to INR, etc) and then give a request to your bank in India to open an NRE fixed deposit. You can always convert the money lying in your NRE account (NRE savings account or NRE fixed deposit) back to foreign currency and repatriate the sum out of India, since both principal and interest earned in this NRE fixed deposit are freely repatriable.
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What is a NRO fixed deposit account?
The Non-Resident Ordinary Fixed Deposit Account (NRO Fixed Deposit) is a Fixed Deposit bank account held in India, in Indian Rupees. The NRO fixed deposit is best suited for you if you have earnings in India (such as rent income, dividend, pension, etc). To open NRO fixed deposit, you need to first transfer money to your NRO savings account (USD to INR, GBP to INR, CAD to INR, AUD to INR, etc) and then give a request to your bank in India to open an NRE fixed deposit. The Government of India allows you to repatriate funds from your NRO fixed deposit up to USD 1 million per financial year abroad. The NRO NRO fixed deposit may be held jointly with residents and/or with non-resident Indian (NRI).
Compare at nriDealExpert.com to find out the best NRO fixed deposits accounts in India.
How can I open a NRO and NRE Fixed Deposit in India?
Compare at nriDealExpert.com to find out the best NRO and NRE fixed deposits accounts in India. Click on the link to visit the bank's website. Complete an application form online or by downloading it. Then, send a printed, signed copy of the form with attested required documents to an address provided by the bank on their website. Alternatively, you can visit the bank's overseas branch or a branch in India on your next visit.
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