Non Resident Accounts Terms and Conditions

Eligibility

Any person competent to contract and satisfying the prescribed KYC guidelines are eligible to open an account with the Bank. The following category of persons can only open Non Resident Accounts.

• Non-resident Indians (NRIs) and Person of Indian Origin (PIOs) are permitted to open and maintain these accounts (A ‘Non-resident Indian’ (NRI) is a person resident outside India who is a citizen of India.

• NRI (Non Resident Indian)
  An Indian citizen residing outside India for the purpose of:
  • Employment, studies, business or vocation
  • Individual posted in UN organisation or official deputed abroad by Government of India or public sector undertakings
  • Indian nationals who may be Mariners or working on oil rigs or foreign registered airlines
• PIO (Person of Indian origin)/ OCI (Overseas Citizen of India)
  • A ‘Person of Indian Origin (PIO)’ is a person resident outside India who is a citizen of any country other than Bangladesh or Pakistan or such other country as may be specified by the Central Government, satisfying the following conditions:

1. Has held an Indian Passport at any point of time
2. Who was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or
3. Who belonged to a territory that became part of India after the 15th day of August, 1947; or
4. Who is a child or a grandchild or a great grandchild of a citizen of India or of a person referred to in clause (a) or (b); or
5. Who is a spouse of foreign origin of a citizen of India or spouse of foreign origin of a person referred to in clause (a) or (b) or (c)

Explanation: PIO will include an ‘Overseas Citizen of India’ cardholder within the meaning of Section 7(A) of the Citizenship Act, 1955.

• Individuals in single name account.
• Joint accounts can be opened by two or more NRIs and/or PIOs or by an NRI/PIO with a resident relative(s) on ‘former or survivor’ basis. However, during the life time of the NRI/PIO account holder, the resident relative can operate the account only as a Power of Attorney holder.

KYC Guidelines

A Non Resident Indian (NRI) as per FEMA 1999 is an Indian citizen or Foreign National of Indian Origin resident outside India for purposes of employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period. For Taxation-An individual will also be considered NRI if in addition to the above, his stay in India is less than 182 during the preceding financial year.

PIO

A Person of Indian origin (PIO) is a citizen of any country other than Pakistan, Bangladesh who:

• At any time held an Indian Passport
• He or any of his parents or grand parents was a citizen of India
• Is a spouse of an Indian Citizen or a person referred to above

Documentation – Latest KYC Guidelines

(Copies to be attested by Indian Embassy/Notary Public/ Customer's Banker abroad or submitted with originals for verification by banks staff)

Eligibility & Documentation  

For NRI (Non Resident Indian)-Holding Indian Passport

• Copy of Valid Passport – (Pages with Name, Address, Date of Birth, Date & Place of Issue, Expiry Date, Photograph, Address & Signature & Observation page if any.
• Proof of NRI Status by way of Valid Employment / Residence Visa Copy or Work / Residence Permit
• Proof of Overseas Address & Indian Address
• Copy of PAN Card or Form 60
• Recent Passport size colour Photograph

List of Overseas Address Proof (Any one)                                                                                       

• Passport with overseas address
• Bank Statement (not more than 3 months old from the date of application) of Overseas/ India Based Bank (NRE Account) attested by the Bank official
• Valid Permanent Overseas Driving Licence
• Company ID Card indicating the address
• Certificate from Indian Diplomatic Mission stating the contact address
• Government ID (Green Card / PIO Card / OCI Card)
• Utility Bill (Electricity / Gas/ Phone / Water – not more than 3 months old)
• Letter from Govt Postal Services confirming the address of the applicant
• Permanent Work Permit / Resident Permit mentioning the overseas address.
• (Kuwait – BataakaMadaniya, Saudi Arabia – Iqaama, Oman – Residence Card, UAE – Labour Card, Baharain – CPR Card, Qatar – Residence Card, Singapore – Residence Card)
• Valid Appointment/ Employment contract letter along with air ticket copies and SBU Head approval
• Self Declaration from the applicant, in lieu of the overseas address proof.

List of  Indian Address Proof

• Passport
• Voters ID Card
• Aadhaar Card
• Valid Permanent Driving License

Initial Payment

The Initial payment to the account should happen in the form of a  SelfCheque from an  NRE account maintained with any other Bank  OR  Direct inward remittance.Foreign currency will not be accepted as initial payment.

Additional Documents required for Minor Accounts:

• Photocopy of guardian’s passport and visa
• Address proof and
• Guardian’s Photograph

Additional documents required for Crew members working on Foreign Shipping/ Airline Company

• Copy of CDC (Continuous Discharge Certificate) – Mandatory, except for new employment
• Appointment letter (For new employment)
• If you are a permanent employee, initial work contract and last wage slip
• If you are a contract employee, last work contract and letter confirming next date of joining vessel or current work contract.

Some Important Points

• Permanent Address should be Indian Address with proof (except for PIO and OCI who are holding foreign passports. In such cases, foreign
• Communication address should be foreign address with proof
• International mobile number is mandatory
• E mail address is mandatory
• OCI – Can open NRE a/c and resident Indian Account with OCI Confirmation, Aadhaar and Pan if he is staying for more than 180 days
• Foreign National – Resident SB A/c only
• Joint A/c can be opened with a close blood relative with former or survivor MOP in case of 2 holder a resident Indian
• Mandate Holder – can be opened for NRE and NRO with letter of mandate and should be a resident Indian with approval of Business Head
• Minor A/c – No self-operating account can be opened
• Minor – Under guardianship/ guardian should be NRE only
• Permanent address – As per passport or OVD and Communication as per foreign address with foreign address proof
• Account can be opened with Zero balance
• Any OVD can be taken as address proof, If there is a mismatch of permanent address with the passport

Source of Funds

By foreign inward remittance by way of SWIFT/WIRE, Foreign Currency*, etc., or transfer from existing NRE accounts, remittance through Rupee Drawing Arrangement approved by RBI.
*Currency Declaration Form (CDF) is to be submitted, if Foreign Currency is USD 5000 and above.

Permitted Credits

1. Inward remittances to the account from abroad and remittances from any NRE account in India are permitted.
2. Credits permitted to this account as inward remittance are interest accruing on the account, interest on investment, transfer from other NRE accounts, maturity proceeds if such investments were made from this account or through inward remittance.
3. Current income like  dividend, pension, interest etc. will be construed as a permissible credit to the NRE account provided the Authorised Dealer is satisfied that the credit represents current income of the NRI/PIO account holder and income tax thereon has been deducted/ paid/ provided for, as the case may be.

Permitted Debits:

The debits allowed from this account are local disbursements, transfer to other NRE/ FCNR(B) and investments in India.

Other relevant guidelines:

1. Operations on an NRE account may be allowed in terms of Power of Attorney or other authority granted in favour of a resident by the non-resident account holder, provided such operations are restricted to withdrawals for local payments or remittance to the account holder himself through banking channels. In cases where the account holder or a bank designated by him is eligible to make investments in India, the Power of Attorney holder may be permitted to operate the account to facilitate such investment. The resident Power of Attorney holder is not allowed to (a) open a NRE account; (b) repatriate outside India funds held in the account other than to the account holder himself; (c) make payment by way of gift to a resident on behalf of the account holder; (d) transfer funds from the account to another NRE account.
2. In the event of the demise of an account holder, balances in the account can be transferred to the non-resident nominee of the deceased account holder. However, request from a resident nominee for remittance of funds outside India for meeting the liabilities, if any, of the deceased account holder or for similar other purposes, should be forwarded to the Reserve Bank for consideration.
3. Interest income from NRE accounts is exempt from Income Tax and balances in NRE accounts are exempt from wealth tax.

Reference document: RBI Master Directions RBI/FED/2015-16/9 FED Master Direction No 14/2015-16 dated 1^st January 2016.

Non Resident (Ordinary)  NRO Accounts:

Any person resident outside India (as per Section 2 (w) of FEMA), may open and maintain NRO account with an Authorised Dealer or an Authorised Bank for the purpose of putting through bona fide transactions denominated in Indian Rupees.

• NRO (current/ savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India. The balance in the NRO account may be paid to the account holder at the time of his departure from India provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than interest accrued thereon.
• Opening of accounts by individuals/ entities of Pakistan nationality/ ownership and entities of Bangladesh ownership requires prior approval of the Reserve Bank. However, individuals of Bangladesh nationality may be allowed to open these accounts subject to the individual/ s holding a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned.
• The accounts may be maintained in any form, e.g. savings, current, recurring or fixed deposit account.
• The accounts may be held jointly with residents on ‘former of survivor’ basis. NRIs and PIOs may hold an NRO account jointly with other NRIs and PIOs also.
• Inward remittances from outside India, legitimate dues in India and transfers from other NRO accounts are permissible credits to NRO account. Rupee gift/ loan made by a resident to a NRI/PIO relative within the limits prescribed under the Liberalised Remittance Scheme may be credited to the latter’s NRO account.
• The account can be debited for the purpose of local payments, transfers to other NRO accounts or remittance of current income abroad. Apart from these, balances in the NRO account cannot be repatriated abroad except by NRIs and PIOs up to USD 1 million, subject to conditions specified in Foreign Exchange Management (Remittance of Assets) Regulations, 2016. Funds can be transferred to NRE account within this USD 1 Million facility.
• Loans against the deposits can be granted in India to the account holder or third party subject to usual norms and margin requirement. The loan amount shall not be used for relending, carrying on agricultural/plantation activities or investment in real estate.
• NRO accounts may be designated as resident accounts on the return of the account holder to India for any purpose indicating his intention to stay in India for an uncertain period. Likewise, when a resident Indian becomes a person resident outside India, his existing resident account should be designated as NRO account.
• Powers have been delegated to the Authorized Dealers/ Authorised banks to allow operations on an NRO account in terms of a Power of Attorney granted in favour of a resident by the non-resident individual account holder provided such operations are restricted to local payments and remittances to non-residents.
• All instructions applicable resident Savings and Term deposits will be applicable to Non Resident Rupee accounts also. Unless expressly stated above.
• Terms and conditions stated herein are in compliance with the guidelines issued by Government of India, Reserve Bank of India and other regulatory institutions. If any of these terms are modified by government of India or other statutory bodies or any terms stated herein are in contravention with any of the regulations issued by RBI or Government of India or other statutory bodies, the latter will prevail.