Resident Foreign Currency Term Deposit

An NRO account can be opened by any person who is residing outside India. It can also be converted back to a regular resident account when your return back to India permanently. Plus, you can enjoy minimum 3.5% quarterly interest rate.

The NRO account enables you to conveniently deposit and manage accumulated rupee funds (the income like rent, dividend, pension, etc., earned in India), thereby giving the freedom and convenience of hassle-free banking

• Low minimum balance requirement of Rs.10,000
• 'Multi-city' cheque book which will permit you to make payment via cheque across multiple locations
• Free Internet Banking and Mobile Banking: 24 X 7 account access through secure Internet banking facility from anywhere and anytime
• Online shopping mall and utility bill payment facility by using our internet based Internet Banking login
• Interest earned on NRE Savings Account is not taxable in India

Mandate or Letter of Authority facility available so that in your absence you can authorize your trusted family member/ relative to operate your account or conduct banking transactions on your behalf

Enjoy 75 paise more value than the existing card rates when you remit money home

To complement your extensive travel, you accounts comes with a free Multi Currency Forex Card which allows you to load upto 16 international currencies and can be reloaded from wherever in the word you are. Also Enjoy discounts whenever you load the card.

• Free personal accidental insurance* cover of Rs. 3 Lacs on the NRE account and 1 Lac on the NRO account.
• Lost Card Liability/Counterfeit cover# of Rs. 50,000 for both NRE and NRO Mariner Account.
• Eligibility of a purchase protection# of Rs.50,000 which encompasses all consumer durable goods purchased using debit cards are insured against fires, natural calamities, burglary and housebreaking up to 90 days from the date of purchase.

*The Personal Accident insurance cover will be considered as active at the time of the incidence if the customer has made a successful purchase transaction on the card within 180 days prior to the occurrence of the incident. The incidence has to be reported within 90 days of occurrence.

#for lost card liability and purchase protection cover, to remain active, there should be at least one purchase transaction within 180 prior to the date of mishap

In the event of the NRI returning from overseas on a permanent basis the NRO Savings Accounts has to be redesignated as resident accounts and the funds held in NRE accounts may be transferred to RFC accounts if the account holder is eligible for maintaining RFC account.

Minimum instalment of Rs. 1,000 only; and in multiples of Rs. 500 thereafter

Tenure can range from 1 year to 10 years

Attractive interest rates available

Free Internet Banking allows 24-hour access to your account from anywhere at any time

Funds are fully repatriable

Competitive exchange rates available when converting foreign currency into Rupees

Interest earned not taxable in India

USD- No penalty for individual deposit below USD 1 million.
EURO- No penalty for individual deposit below EURO 1 million.
GBP- No penalty for individual deposit below GBP 750,000.
JPY- No penalty for individual deposit below JPY 125 million.
AUD- No penalty for individual deposit below AUD 1.5 million.
CAD- No penalty for individual deposit below CAD 1.5 million.

For RFC Deposits qualifying for no penalty as mentioned above, interest rate shall be prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or the contracted rate, whichever is lower

For RFC Deposits qualifying for penalty as mentioned above, interest rate shall be 1% below the card rate prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or 1% below the contracted rate, whichever is lower

Any permitted foreign currency

• Remittance from abroad such as funds in bank account outside India, income such as dividend, interest, profit, rent, etc., sale proceeds of eligible assets abroad
• Pension or other monetary benefits received outside India, arising out of employment outside India prior to his returning to India
• Interest earned on RFC account
• Foreign currency notes or travellers cheques
• Transfer from other RFC accounts
• Balance transferred from NRE or FCNR accounts
• Transfer from RIFEE account

• Any bona fide remittance outside India through normal banking channels
• Withdrawals or payments in India (in Indian rupees)
• Transfer to other RFC accounts
• Payment in foreign currency in India can be permitted only with the permission of RBI

Loan or overdraft can be allowed against balances in an RFC account.

• If the nominee is a person resident outside India, then funds may be remitted outside India to the extent of his share or entitlement from the account of the deceased
• If the nominee is resident in India, and for meeting the liabilities of deceased, wants to remit funds outside India, he can do so after obtaining permission from RBI

Attractive interest rates with the added advantage of rising exchange rates

No capital risk involved as money is invested in Fixed Deposit

Forward can be booked on existing Fixed Deposit or fresh Fixed Deposit

Tenure options from 3 months to 5 years

From as low as USD 10,000 or equivalent

Interest earned not taxable in India

Earnings are fully repatriable on maturity

Interest earned in the current financial year is fully repatriable (after deducting tax).
Funds in NRO account can be repatriated upto USD one million per financial year# for all bonafide purposes

Tenure can range from 7 days to 10 years

Partial withdrawal of deposits is allowed

Upto 85% of the deposit

Nomination facility available

• For Rupee Term Deposits of a contracted amount less than Rs. 5 crores opened/renewed on or after May 1, 2014 (including Flexi deposits), interest rate shall be 1.00% below the card rate, prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or 1.00% below the contracted rate, whichever is lower ("Premature Closure Penalty Rate"). However, for Rupee Term Deposits closed within 14 days from the date of booking of the deposit interest rate shall be rate applicable for the period the deposit has remained with the bank or the contracted rate, whichever is lower.
• For Rupee Term Deposits of a contracted amount less than Rs. 5 crores opened/renewed on or after December 15, 2017 (including Flexi deposits), for the first partial withdrawal with value <= 25% of Term Deposit original principal value, Premature Closure Penalty Rate will not be applicable. For subsequent partial withdrawals, Premature Closure Penalty Rate will apply on the entire withdrawal amount. For the partial withdrawal with value > 25% of Term Deposit original principal value, Premature Closure Penalty Rate will be applicable for the entire withdrawal amount. However, for Rupee Term Deposits closed within 14 days from the date of booking of the deposit, interest rate shall be rate applicable for the period the deposit has remained with the bank or the contracted rate, whichever is lower.
• For Rupee Term Deposits of a contracted amount of Rs 5 Crores and above, interest rate shall be 1% below the card rate prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or 1% below the contracted rate, whichever is lower. This would also be applicable on Rupee Term Deposits closed within 14 days from the date of booking of the deposit.
• In case the term deposit is closed prematurely , before completion of the minimum period of 7 days, no interest shall be paid for the said term deposit.

To Account Holder

• Loans may be granted in rupees against the security of FDs subject to usual norms except for the purpose of relending or carrying on agricultural or plantation activity or for investment in real estate

To Third Parties

Loans to resident individuals, firms or companies in India may be granted against the security of NRO deposits subject to following conditions:

• The loan shall be utilised for meeting borrowers personal requirements and/or business purpose and not for carrying on agricultural or plantation activities or real estate business or for relending
• Regulations relating to margin and rate of interest as stipulated by RBI shall be complied with

For all new Reinvestment Term Deposits to be opened on and after 1st August, 2013 and all existing Reinvestment Term Deposits that may be renewed on and after 1st August, 2013, interest reinvested would be net of TDS and hence the maturity value would vary to that extent.

Minimum instalment of Rs. 1,000 only; and in multiples of Rs. 500 thereafter

Tenure can range from 1 year to 10 years

Attractive interest rates available

Free Internet Banking allows 24-hour access to your account from anywhere at any time

Competitive exchange rates available when converting foreign currency into Rupees

Reduced TDS benefit under DTAA

For all new Reinvestment Term Deposits to be opened on and after 1st August, 2013 and all existing Reinvestment Term Deposits that may be renewed on and after 1st August, 2013, interest reinvested would be net of TDS and hence the maturity value would vary to that extent.

With automatic renewal of principal and interest on maturity

Deposits can be held for a period of 1 year to 10 years

Principal amount and interest earned are fully repatriable

Interest earned not taxable in India

Partial withdrawal of the deposits allowed with NRE Savings Account with Premature Encashment

• For NRE Term Deposits of a contracted amount less than Rs 5 Crores opened/renewed, interest rate shall be prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or the contracted rate, whichever is lower.
• For NRE Term Deposits of a contracted amount of Rs 5 Crores and above, interest rate shall be 1% below the card rate prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or 1% below the contracted rate, whichever is lower.
• In case the NRE term deposit is closed prematurely, before completion of the minimum period of 1year, no interest shall be paid for the said term deposit.

# The depositor who returns to India for good will be allowed to continue the deposit till maturity of the deposit at the contracted rate of interest, if desired. However, except the provisions relating to rate of interest, such deposit would be treated as resident deposits from the date of return of the account holder to India and taxed accordingly for all other purposes.

Upto 85% of the deposit

With the nomination facility

• The bank may, at its discretion, renew an overdue NRE or FCNR deposit or a portion thereof provided the overdue period from the date of maturity till the date of renewal (both days inclusive), does not exceed 14 days and at the time of renewal banks are required to apply the rate prevailing on the date of renewal or on the date of maturity, whichever is lower.
• In case the overdue period exceeds 14 days, banks are free to fix their own rate for the overdue period if the entire amount or a part thereof is kept as a fresh deposit

To Account Holder

• For personal purposes or for carrying on business activities except for the purposes of relending, carrying on agricultural or plantation activity or of investment in real estate loan against deposit can be granted.
• The loan should be repaid from fresh inward remittances or from NRE or FCNR deposit. The loan can also be repaid out of local rupee resources in the NRO account and in such cases commercial rate of interest should be charged.

Loan outside India

• Banks may allow their branches or correspondents outside India to grant loan against deposits in favour of non-resident depositor.

Money is invested in Fixed Deposits, so no capital risk involved

Tenure options from 3 years to 5 years

USD 10,000 or equivalent

Interest earned not taxable in India

Earnings can be repatriated on maturity

• Foreign inward remittance
• Traveller's cheques or foreign currency tendered by the account holder personally
• Transfer from existing NEW or FCNR deposits
• FCNR deposits are exempt from tax liability

Principal amount and interest earned are fully repatriable

• Interest on the deposits accepted shall be paid on the basis of 360 days to a year
• Interest on FCNR deposits shall be calculated as below:
• For deposits upto one year, at the applicable rate without any compounding effect
• For more than 1 year, at intervals of 180 days and thereafter for remaining actual number of days may be compounded

• USD- No penalty for individual deposit below USD 1 million.
• EURO- No penalty for individual deposit below EURO 1 million.
• GBP - No penalty for individual deposit below GBP 750,000.
• JPY- No penalty for individual deposit below JPY 125 million.
• AUD- No penalty for individual deposit below AUD 1.5 million.
• CAD- No penalty for individual deposit below CAD 1.5 million.
  
• For FCNR Deposits qualifying for no penalty as mentioned above, interest rate shall be prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or the contracted rate, whichever is lower
• For FCNR Deposits qualifying for penalty as mentioned above, interest rate shall be 1% below the card rate prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or 1% below the contracted rate, whichever is lower
• In case the FCNR deposit is closed prematurely, before completion of the minimum period of 1year, no interest shall be paid for the said term deposit

• The bank may, at its discretion renew and overdue NRE or FCNR deposit or a portion thereof provided the overdue period from the date of maturity till the date of renewal (both days inclusive), does not exceed 14 days and at the time of renewal banks are required to apply the rate prevailing on the date of renewal or on the date of maturity whichever is lower
• In case the overdue period exceeds 14 days, banks are free to fix their own rate for the overdue period if the entire amount or a part thereof is kept as a fresh deposit

• The depositor who returns to India for good may be allowed to continue the deposit till maturity of the deposit at the contracted rate of interest, if desired. However, except the provisions relating to rate of interest and reserve requirements as applicable to FCNR (B) deposits, for all other purposes such deposit would be treated as resident deposits from the date of return of the account holder to India. Premature withdrawal of such deposits shall be subject to penal provisions of the scheme
• The depositor may convert his deposits into RFC accounts. If the FCNR deposit is converted into RF account, then penalty clause is not applicable
• Banks may pay interest at its discretion at the time of conversion of FCNR (B) account into RFC or Resident Rupee account, even if the same has not run for a minimum period of 1 year, subject to the condition that the rate of interest should not exceed the rate payable on SB deposit held under RFC Account scheme

To the Account Holder

• Loans may be granted in rupees against the security of FDs subject to usual norms except for the purpose of relending or carrying on agricultural or plantation activity or for investment in real estate.

Interest Rates on NRI Deposits

Pick between simple interest and compound interest options

• Short Term Deposits
• Reinvestment Deposit
• Monthly and Quarterly Payout Deposits

• For fixed deposits with tenure of 6 months and above, interest is calculated on a quarterly basis.
• Interest earned during the previous quarter is added to the Principal for calculation of interest. Fixed deposit interest rate on this amount is calculated every quarter.
• For fixed deposits schemes with tenure of below 6 months, interest is calculated at Simple Interest. Please note that the period of Fixed Deposit is considered in number of days.
• In the event the depositor chooses to receive the periodic interest payments on a quarterly basis, interested is calculated and paid on quarterly rests.
• The FD rate applicable for a monthly interest option will be discounted rate over the standard rate.
• Tax at source is deducted as per the Income Tax regulations prevalent from time to time.
• No interest will be paid if the NRE Deposit is prematurely withdrawn prior to the completion of 1 year
• The special rates for Senior Citizens will not be applicable on NRI Deposits

TDS in respect of interest earned on fixed deposits, is deducted on the basis of the total interest projected on the aggregate of fixed deposits of the customer, for the financial year. TDS is deducted @ 30% + education cess on interest earned on NRO Deposits