Comparative Chart for various Bank Accounts for NRIs

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Post date November 25, 2020
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This note covers the major features of various Bank Account Schemes available to Resident Indian, Non-Resident Indian and Foreign Nationals. Following schemes have been covered under this note:

Table A:

NRE Account

NRO Account

FCNR (B) Account

Table B:

SNRR Account

RFC Account

RFC (D) Account

EEFC Account

Table A

Sr. No.	Subject	NRE Account Non-Resident (External) Account	NRO Account Non-Resident Ordinary Rupee Account	FCNR (B) Account Foreign Current Non-Resident
1.	Eligibility	NRI himself and not by the holder of POA	NRI for bona fide Rupee transactions	NRI/PIO
2.	Currency	Foreign Currency	Rupee	Foreign Currency
3.	Type of Accounts	Any form such as Savings, Current, Recurrent or Fixed Deposits	Any form such as Savings, Current, Recurrent or Fixed Deposits	Term deposit upto maturity of 5 years
4.	Interest Rate	As per the directive of RBI	As per the directive of RBI	As per the directive of RBI
5.	Permitted Credits	a. Proceeds of inward remitances from Outside India through normal banking channels and credit b. Visa fees collected in india by transfer from rupee account to the accounts maintained in FC by diplomatic missions c. Proceeds of personal cheques drawn by the account holder on his FC account. d. FC/Bank notes tendered by the account holder during his temporary visit to India e. Transfer from other NRE/FCNR accounts f. Interest accrued on funds in the NRE account g. Interest on Govt Sec and dividend from MF h. Maturity proceeds of Govt Sec and MF units i. Refund of share or debenture subscriptions j. Refund of amount paid for purchase (including interest) of immovable property in India k. A/c payee cheques issued against encashment of foreign currency l. Sale proceeds of foreign investments m. Any other credit covered under general and special permission granted by RBI n. Current Income from rent, interest, dividend, pension, etc (net of tax)	a. Proceeds of remittances from Outside India through normal banking channels received in FC b. Any FC tendered by the account holder during his temporary visit to India. c. Transfer from rupee account of NR banks d. Dues in India of the account holder including rent, dividend, pension, interest, sale proceeds of immovable property e. Gift or loan from RI who is a close relative (Max USD 1,25,000 per year)	Same as NRE
6.	Permitted Debits	a. Local disbursements b. Remittance outside India c. Transfer to NRE/FCNR account d. Investment (for which credit is permissible) e. Any other debit covered under general and special permission granted by RBI	a. Local payments in rupees including making investment in India b. Remittance outside India of current Income c. Remittance upto USD 1 Mio per FY for all bona fids purposes d. Transfer to NRE of NRI withing the overall ceiling of USD 1 Mio (net of taxes) e. Foreign Citizen (not a PIO) who has retired from employment in India or has inherited assets may remit not exceeding USD 1 Mio f. NRI/PIO may remit the amount not exceeding USD 1 Mio per year from proceeds from sale of assets acquired by way of i. inheritance/legacy ii. deed of settlement made by either of his pares or a close relative and settlement taking effect after the death of the settler.	Same as NRE
7.	Grant of Loans/OD	a. Rupee Loans in India requirements. b. FC Loan in India/Outside India – against NRE/FCNR(B) Deposit without any ceiling limit but subject o margin	In Rupees against the security of FD subject to the following: a. cannot be used for agricultural/platation activities or real estate business or for relending b. Margin and interest as stipulated by RBI to be complied c. Usual norms in case of advances to trade/industry shall be applicable	Same as NRE
8.	Tax Exemptions	Interest on NRE account is exempt from Income tax	Interest on NRO account is Taxable All remittances to be net of tax	Interest on FCNR (B) deposits are exempt from Income tax
9.	Joint Holders	Joint account of NRI with RI – on former or survivor basis. Joint Account of RI with NRI. Can operate the account during the lifetime of the Account holder – on either or survivor basis. Will be treated as a resident bank account.	Joint account with RI and/or NRI is allowed	Same as NRE
10.	Change of Residential Status of the account holder	From NRE to RFC account on change of residential status from NRI to RI i.e. on returning to India with indicating intention to stay in India for an uncertain period.	RI to NRI – the existing account should be designated as NRO account. This facility is also extended to Foreign Nationals employed in India and having pending dues in India after they leave for their county. NRI – RI – Should be re-designated as a resident rupee account.	Deposits to continue at the rate of interest as per the contract till the maturity. The FCNR account should then be converted to a resident rupee deposit account or RFC account at the option of the account holder and at new applicable interest rates
11.	Repatriation of funds	To the Non-Resident nominee of the deceased account holder	To the NRO bank account in India of the Non-Resident/Resident nominee of the deceased account holder.	Same as NRE. Proceeds of deposit on maturity can be remitted to a third party outside India if the same is specifically authorised by the account holder
12.	Operation by a Power of Attorney Holder	a. POA holder can operate during the lifetime of the account holder. b. POA holder cannot repatriate funds outside India	– Powers delegated to ADs/Banks to allow operation by a resident POA holder subject to: a. For all local rupee payments for eligible investments. b. Repatriate funds outside India to the account holder only. Transfer current income of the account holder.	Same as NRE

Table B:

Sr. No.	Subject	SNRR Special Non-Resident Rupee Account	RFC Resident Foreign Currency Account	RFC (D) Resident Foreign Currency (Domestic) Account	EEFC Exchange Earner’s Foreign Currency Account
1.	Eligibility	Person resident outside India, having a business interest in India for putting through bona fide rupee transactions Term cannot exceed 7 years	NRI returning to India	Resident Individuals Rupee Account	Resident Individual Foreign Currency Account
2.	Currency	Rupee	Rupee	Rupee	Foreign Currency
3.	Type of Accounts	Current Account	Current, savings or Deposit Account	Current Account	Current Account
4.	Interest Rate	NA	As per the directive of RBI	NA	NA
5.	Permitted Credits	a. Incidental to the business proposed to be done b. Transfer from NRO to SNRR is not permitted.	a. Any monetary benefits from his employer outside India b. Conversion of foreign assets – security or immovable property situated outside India and acquired as a Resident outside India c. Gift or inheritance from a person resident outside India and proceeds repatriated to India d. Proceeds of Life insurance policy claims/maturity/surrender values settled in FC from an Insurance co. in India	Foreign Exchange acquired from the following sources: a. Payments from services apart from business or vocation from a visit outside India b. Gift from a close relative c. Gift/Honorarium from a person resident outside India on a visit to India d. Gift/honorarium while on a visit outside India e. Export earnings – goods/services f. Disinvestment proceeds on conversion of shared held by him under ADR/GDR scheme approved by FIPB g. Proceeds of Life insurance policy claims/maturity/surrender values settled in FC from an Insurance co. in India	a. Remittance through normal banking channel other than FC Loan or investment received from abroad or funds for meeting specific obligations b. Payment /Advance for export of goods or services c. Professional earnings d. Interest e. Re credit of unutilised foreign currency earlier withdrawn from the account f. Amount representing prepayment by the importer customer. g. FE earnings received through international credit card for which reimbursement is provided in FE through normal banking channel.
6.	Permitted Debits	Incidental to the business proposed to be done	No restrictions on utilisation of funds	For all current and capital transactions in accordance with regulations of FEMA for Resident Indians.	a. Permissible Current and Capital account transactions b. Cost of goods purchased from a 100% EOU or a unit in EPZ or STP or EHTP and payment of customs duty c. Trade related loans/advances d. Payment of FE for supply of goods and services including airfare and hotel expenditure to a person resident in India
7.	Grant of Loans/OD	NA	NA	NA	NA
8.	Tax Exemptions	Subject to Tax	Taxable	NA	NA
9.	Joint Holders	NA	Non-Resident -close relatives- can be Joint holders but not eligible to operate during the life time of the resident account holder	NA	NA
10.	Change of Residential Status of the account holder	ROI to RI – Designated as resident rupee account	NA	RI to NRI – Balance can be credited to NRE account	Can be converted to NRE Account
11.	Repatriation of funds	Permissible	Non-Resident Nominee – can remit funds to the extent of his entitlement/share RI Nominee – can remit funds outside India to the extent of his entitlement/share with prior permission from RBI	Through NRE account on change of residential status.	Through NRE account on change of residential status. Withdrawal in Rupee is permitted but the same cannot be credited back to the EEFC account.
12.	Operation by a Power of Attorney Holder	NA	NA	NA	NA

Comparative Chart for various Bank Accounts for NRIs

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