NRI Bank Accounts:
In accordance with the NRI banking laws in place for NRI, banks and other fiscal institutions that are permitted by the RBI to deal with NRI (and FOREX), NRI can open either of the three accounts – FCNR (Foreign Currency Non-Resident account); NRE (Non-Resident External rupee account); and/or NRO (Non-Resident Ordinary rupee account).
Features of such internet banking accounts in India:
- FCNR accounts –
- Available only for FDs with the maturity period ranging from 1-3 years
- NRE accounts –
- Opened in Indian rupees
- FOREX deposits received are first converted to Indian rupees and then credited
- NRO accounts –
- Held by any person designated as NRI
Certain knowable facts of the aforementioned accounts:
- Power of Attorney – person having a power of attorney cannot open any account on behalf of NRI though such a person is permitted to run the same. The power of attorney holder cannot make gifts from these accounts nor can he remit outside India.
- Investments – NRI can invest in shares and/or securities of Indian companies, Government, using a NRO or NRE account. Please note that investments made through NRO accounts are non-repatriable while those made through NRE accounts are repatriable.