Operations by Power of Attorney in favour of a resident by the non-resident accountholder | FCNR Account- Operations in the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels. |
Non Resident (External) Rupee Account- Operations in the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels. |
Non Resident (Ordinary) Rupee Account- Operations in the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments in rupees, remittance of current income to the account holder outside India or remittance to the account holder himself through normal banking channels. Remittance to the NRI/ PIO account holder is subject to the ceiling of USD 1 (one) million per financial year. |
NRO Deposits
No penalty will be charged however the applicable rate of interest on the date of acceptance of deposit for the actual period which the deposit has remained with the bank or contracted rate of interest whichever is lower shall be applicable.
No interest is payable if the deposit is withdrawn before expiry of 7 days in case of term deposit and below three months in case of recurring deposits.
NRE Deposits:
Premature payment of NRE Term Deposits may be permitted subject to any of the following conditions as may be applicable
Foreign currency (non-resident) scheme (banks) - FCNR(B)
No interest will be payable on premature payment within a minimum period of twelve months from the date of deposit. On other premature withdrawals, interest is payable at a rate 1% less than the rate of interest applicable on the date of deposit, for the period for which the deposit remained with the bank. The forfeited interest amount should be calculated at the notional rate at which the interest was credited to the deposit amount and should be credited to P & L.
(Source: RBI site-http://www.rbi.org.in/ Master Circular on Interest Rates on Rupee Deposits held in Domestic, Ordinary Non-Resident (NRO) and Non-Resident (External) (NRE) Accounts & Master Circular of instructions relating to deposits held in FCNR (B) Accounts and Manual of Instructions on Foreign Exchange Volume – IV)
NRE Deposit
Foreign currency (non-resident) scheme (banks) - FCNR(B)
Renewal of Overdue Deposit: Where overdue period is 14 days (date of maturity and date of renewal inclusive) the deposit may be renewed retrospectively from due date. The rate of interest payable on the amount of deposit so renewed, will be appropriate rate for the period of renewal as prevailing on the date of maturity or on the date when the depositor seeks renewal (i.e date of renewal), whichever is lower. 20.1217 If the overdue period, as calculated above exceeds 14 days, the renewal will be treated as fresh deposits from prospective dates i.e. date of renewal. For overdue period, simple interest at 3.5% i.e. per annum or minimum rate of interest for the currency operative on the date of renewal, whichever is lower.