NRE Accounts

Eligibility:

Non-Resident Indians, meaning persons of Indian origin / nationality, residing outside India are eligible to open NRE accounts.

Period:

Non-Resident External Accounts (NRE) can be held either as operative accounts (viz., Current A/c or Savings Bank A/c) or as term deposits, ranging from 1 year to 10 years (cumulative / non-cumulative basis).

Currency:

Accounts can be maintained in Indian Rupees and the balances with accrued interest are fully repatriable.

Withdrawals:

Funds can be withdrawn freely for local payments
Funds can be remitted in Foreign Currencies payable in convertible Indian Rupees and in foreign currency, including interest earned. Withdrawals in SB A/c or C. A/c are permitted freely, for local disbursement. Funds can be utilised for opening FCNR (B) deposits.

Tax Benefits:

Income from interest on NRE deposit accounts held in an individual's name is exempt from Indian Income Tax. Balances held in the account are also exempt from Wealth Tax. Gifts made from the account are also exempted from Gift Tax.

Nomination

Nomination facility is available.

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