An NRE or Non-Resident Rupee account is an Indian Rupee denominated account. Funds from abroad, say, income earned abroad can be periodically deposited easily into an NRE account in foreign currency. This gets converted to INR the moment the money is deposited to the account at prevailing exchange rates. Here’s what you need to know about NRE accounts:
1. Documents
Documents such as proof of identity, NRI status proof, proof of foreign address and two photographs need to be submitted. In case of a new account, the NRI will have to fill up a new account opening form with similar KYC documents. Proof of residence abroad can be in the form of employment detail, student status, dependent visa status, or a copy of the resident permit in the overseas destination. This proof needs to be attested by the Indian embassy, notary or branch of an Indian bank with an overseas branch.
2. Usage
Mutual fund investments become effortless and instant if you link your NRE account number to the investment account. It is primarily used for carrying out business, personal banking and making investments in India.
3. Account
NRIs can open NRE accounts as a joint account with another NRI, but not with an Indian resident. Choose NRE account if the reason for opening it is to park the overseas earning to India or maintain savings in rupees but keep them liquid for NRI investments. Also, if you want the savings to be freely repatriable, you should opt for NRE account.
4. Repatriation
You can repatriate any amount of any kind from the NRE accounts. There is no restriction, ceiling or chartered accountant certificate needed.
5. Taxability & Interest Rates
On your NRE savings account you can earn an interest of around 3% while on the NRE fixed deposit, you can earn between 2-4% depending on the tenure. Interest on NRE accounts, whether savings or fixed deposit, is tax-free.
The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We strongly recommend you to seek professional guidance pertaining to your query or doubt.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country. We are a unique, online portal providing all of the information to our users that could be relevant to them.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
2024 NRI Club™ © All Rights Reserved.