NRE DEPOSITS
- Types: Recurring/Fixed Deposits/Family Welfare Deposits/Cumulative
- Funds from overseas/NRE account
- Tax free
- Fully Repatriable overseas
- Period: Minimum 12 months, Maximum 120 months
- Joint Account-Permitted with NRIs. A Resident close relative can also join under ‘Former or Survivor’ basis where the NRI/PIO is the former holder and the Resident holder can operate the account only on death of the primary NR/PIO holder. However, the resident relative can operate the account as a Letter of authority/Power of Attorney holder during the life time of the NRI account holder. However, the resident can operate the account against a ‘Power of Attorney’ for local disbursements only
- Premature withdrawals are permitted for fixed deposits, no penalty for premature closure (No interest, if withdrawn within the minimum stipulated period)
- Interest is compounded quarterly for higher returns. Provision to withdraw quarterly/monthly interest
- Deposits can be transferred between banks/ branches
- Loans available against fixed deposits. Repayment can be from domestic sources, if so opted
- Nomination can be in favour of a Non-Resident/ Resident.
- NRE Family Welfare Deposits: This is a reinvestment deposit scheme meant for NRIs. All other features are similar to NRE Fixed deposits described here.
- NRE Cumulative Deposit Accounts: This is a recurring deposit scheme meant for NRIs that enables the depositor to build up a sizeable corpus in a regular/ systematic manner. These accounts can be opened for a minimum period of 12 months and for a maximum period of up to 10 years. Deposits from this scheme are held in convertible Rupees and the principal and interest amounts are repatriable without any restrictions.
