[PPT] - NON-RESIDENT (EXTERNAL) ACCOUNT AN ACCOUNT IN RUPEES OPENED AND PowerPoint Presentation

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NON-RESIDENT (EXTERNAL) ACCOUNT

AN ACCOUNT IN RUPEES

SPECIALLY AUTHORIZED OR EXEMPTED OR PERMITTED BY THE RESERVE BANK UNDER THE ACT IN THE NAME OF A PERSON RESIDENT OUTSIDE INDIA IN PURSUANCE OF THE NON-RESIDENT (EXTERNAL) ACCOUNTS RULES, 1970, IS DESIGNATED AS A NON-RESIDENT (EXTERNAL) OR NRE ACCOUNT.

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OPENING OF ACCOUNT A NON-RESIDENT (EXTERNAL) ACCOUNT MAY BE OPENED

ORIGIN, RESIDENT OUTSIDE INDIA AND

PROVIDED THAT THE FUNDS ARE TRANSFERRED TO INDIA IN A FREELY CONVERTIBLE CURRENCY. AN NRE ACCOUNT MAY ALSO BE OPENED:

THE PROCEEDS OF FOREIGN CURRENCY, DRAFTS AND TRAVELER'S CHEQUES DRAWN IN THE NAME OF APPLICANT OR FOREIGN CURRENCY NOTES TENDERED BY HIM SUBJECT TO HIS ENDORSEMENT.

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OPENING OF ACCOUNT

OR FCNR (B) ACCOUNT OR BY TRANSFER OF FUNDS FROM SUCH AN ACCOUNT WITH PRIOR APPROVAL OF THE RESERVE BANK.

OR ANY OTHER CORPORATE BODY OF WHICH AT LEAST 60 PERCENT IS OWNED BY NON-RESIDENTS OF INDIAN NATIONALITY, OR IN THE NAME OF AN OVERSEAS TRUST IN WHICH AT LEAST 60 PERCENT OF THE BENEFICIAL INTEREST IS IRREVOCABLE HELD BY SUCH PERSONS.

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OPERATION BY RESIDENTS

(EXTERNAL) BY A RESIDENT MAY BE ALLOWED WITH PRIOR APPROVAL OF RESERVE BANK AND IS RESTRICTED TO WITHDRAWALS FOR LOCAL PURPOSES.

HAS BEEN GRANTED PERMISSION BY THE RESERVE BANK TO MAKE INVESTMENTS IN INDIA, THE ATTORNEY HOLDER MAY BE PERMITTED BY THE AUTHORIZED DEALER FOR SUCH INVESTMENT, BUT NOT FOR REPATRIATION OUTSIDE INDIA.

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TRANSACTIONS WHICH ARE FREELY ALLOWED DEBITS:

PURPOSE FOR INVESTMENT IN INDIA.

HELD BY THE ACCOUNT HOLDER OR HIS DEPENDENTS.

NRE ACCOUNT OF THE ACCOUNT HOLDER.

OTHER PERSONS FOR BONAFIDE PURPOSES.

GRANTED BY RESERVE BANK.

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TRANSACTIONS WHICH ARE FREELY ALLOWED CREDITS:

(EXTERNAL) ACCOUNT OF THE ACCOUNT HOLDER.

NON-RESIDENT (EXTERNAL) ACCOUNT OF THE ACCOUNT HOLDER.

AN INDIAN COMPANY TO WHICH THE AMOUNT WAS REMITTED TO THE DEBIT OF THE AMOUNT TO PURCHASE ITS NEW ISSUE OF SHARES.

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RATE OF INTEREST ON PREMATURE WITHDRAWAL

BY THE CONCERNED BANK FROM TIME TO TIME.

(EXTERNAL) ACCOUNT IS PERMISSIBLE SUBJECT TO PENALTY AS DECIDED BY THE BANK.

HIS FAMILY TO THE DEBIT OF HIS NON-RESIDENT (EXTERNAL) ACCOUNTS SHOULD BE ENDORSED ON HIS PASSPORT.

LIBOR /SWAP RATES OF PREVIOUS MONTH PLUS 50 BASIS POINTS.

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LOAN / OVERDRAFT

TEMPORARY OVERDRAWING NOT EXCEEDING MORE THAN 2 WEEKS UP TO A LIMIT OF RS. 54,000 MAY BE ALLOWED.

OVERDRAFT MAY BE GRANTED UNDER NORMAL INTEREST RATES FOR PURPOSES OTHER THAN INVESTMENT IN INDIA, PROVIDED IT IS FULLY COVERED BY FIXED DEPOSIT.

AUTHORIZED DEALER MAY GRANT A LOAN OR OVERDRAFT FOR THE PURPOSE OF MAKING DIRECT INVESTMENT IN INDIA ON NON –REPATRIATION BASIS BY WAY OF CONTRIBUTION TO THE CAPITAL ON INDIAN FIRMS / COMPANIES, HOSPITALS, HOTELS OF 3 STAR OR HIGHER GRADES, SHIPPING, etc.

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LOAN / OVERDRAFT

OVERDRAFT MAY BE GRANTED TO A NON-RESIDENT INDIVIDUAL OF INDIAN NATIONALITY OR A FOREIGN CITIZEN OF INDIAN ORIGIN (NOT AN OCB) AGAINST HIS NRE DEPOSITS.

A LOAN OR AN OVERDRAFT MAY BE GRANTED TO A RESIDENT INDIVIDUAL / FIRM / COMPANY AGAINST NRE DEPOSITS PROVIDED:

FOR CARRYING ON BUSINESS OTHER THAN AGRICULTURE / PLANTATION.

THE DEPOSIT DURING THE PERIOD OF THE LOAN.

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TRANSFER FROM ONE ACCOUNT TO ANOTHER

AN NRE ACCOUNT MAY BE TRANSFERRED FROM:

AUTHORIZED DEALER.

AUTHORIZED DEALER AT THE SAME CENTRE OR AT ANOTHER CENTRE.

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EXCHANGE EARNERS’ FOREIGN CURRENCY (EEFC) ACCOUNTS.

ACCOUNT IS A CURRENT ACCOUNT

OTHER BENEFICIARY OF

CURRENCY

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EXCHANGE EARNERS’ FOREIGN CURRENCY (EEFC) ACCOUNTS. NON-ELIGIBILITY / RESTRICTIONS I. AN EXPORTER MAINTAINING A FOREIGN CURRENCY ACCOUNT WITH A BANK OUTSIDE INDIA IS NOT ELIGIBLE TO MAINTAIN AN EEFC ACCOUNT IN INDIA. II. A SAVINGS BANK EEFC ACCOUNT IN THE NAME OF A FIRM, COMPANY OR ANY OTHER CORPORATE BODY IS NOT PERMISSIBLE.

ALLOWED TO RETAIN 50% OF THE AMOUNT IN A FOREIGN CURRENCY DENOMINATED ACCOUNT TO BE OPENED WITH AN AD IN INDIA.

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UTILIZATION OF FUNDS IN EEFC ACCOUNTS I. PAYMENTS OUTSIDE INDIA TOWARDS A CURRENT ACCOUNT TRANSACTION IN ACCORDANCE WITH THE PROVISIONS OF: II. THE FOREIGN EXCHANGE MANAGEMENT (CURRENT

PERMISSIBLE UNDER THE FOREIGN EXCHANGE MANAGEMENT (PERMISSIBLE CAPITAL ACCOUNT TRANSACTION) REGULATIONS 2000.

POLICY OF THE GOVERNMENT.

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UTILIZATION OF FUNDS IN EEFC ACCOUNTS

RESIDENT IN INDIA FOR SUPPLY OF GOODS /SERVICES INCLUDING PAYMENTS FOR AIR FARE AND HOTEL ACCOMMODATION.

BY AN EXPORTER TO HIS IMPORTER OUTSIDE INDIA, SUBJECT TO (BORROWING AND LENDING IN FOREIGN EXCHANGE ) REGULATION 2000. IF THE AMOUNT EXCEEDS US $ 100,000 A GUARANTEE OF A BANK OF INTERNATIONAL REPUTE SITUATED OUTSIDE INDIA IS TO BE PROVIDED.

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OTHER MISCELLANEOUS PROVISIONS

EEFC ACCOUNT, WITHDRAWAL SHALL NOT BE ELIGIBLE FOR CONVERSION INTO FOREIGN CURRENCY AND CREDIT TO THE ACCOUNT.

PERMISSIBLE.

NRE / FCNR-B ACCOUNT AT THE OPTION / REQUEST OF THE ACCOUNT HOLDERS CONSEQUENT TO CHANGE THEIR STATUS FROM RESIDENT TO NON-RESIDENT.

GDRs, SCHEME APPROVED BY FIBB ARE PERMITTED TO BE CREDITED TO THEIR EEFC ACCOUNTS.

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FOREIGN CURRENCY (NON-RESIDENT) ACCOUNTS (BANKS)

(NON-RESIDENT) ACCOUNTS (BANKS) SCHEME MAY BE OPENED WITH AN AUTHORIZED DEALER IN INDIA ONLY IN THE FORM OF A TERM DEPOSIT BY AN NRI / OCB WITH FUNDS REMITTED FROM ABROAD OR FUNDS TRANSFERRED FROM AN EXISTING NRE / FCNR ACCOUNT OF THE APPLICANT.

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FEATURES OF FCNR-B ACCOUNT

US DOLLAR / JAPANESE YEN AND EURO.

TO 3 YEARS.

RESIDENT ONLY AND WHEN ANY JOINT HOLDERS BECOME RESIDENT,THEN THAT NAME TO BE DELETED.

ARE: PROCEEDS OF REMITTANCE TO INDIA / PERSONAL CHEQUES ON FOREIGN CURRENCY ACCOUNT, TRANSFER FROM OTHER NRE / FCNR ACCOUNTS, PROCEEDS OF

TRANSFER OF BALANCES FROM EEFC / RFC / RFC(D) ACCOUNTS DUE TO CHANGE OF STATUS.

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FOREIGN CURRENCY NON-RESIDENT (BANKS) ACCOUNTS ARE A GOOD SOURCE OF RESOURCE MOBILIZATION FROM NRIs, AS MORE THAN 10 MILLION INDIANS ARE SETTLED ABROAD. THE FUNDS RAISED IN FCNR ACCOUNTS ARE LENT TO EXPORTERS FOR IMPORT OF RAW MATERIALS AND / OR COMPONENTS USED IN EXPORT GOODS.

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NO RBI GUARANTEE OF EXCHANGE RATE

RATE GUARANTEE TO BANKS FOR DEPOSITS OF ANY MATURITY UNDER THIS SCHEME.

SURRENDERED TO THE RESERVE BANK.