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Non-Resident (External) Accounts Deposit Scheme (NRE)

Non- Resident Indians (NRI) & Persons of Indian Origin (PIO) can open Accounts under the scheme. The account should be opened by the non-resident account holder himself and not by the holder of power of attorney in India.

Description

  • NRE accounts can be opened by remittances from abroad in any convertible currency or from transfer of funds from existing NRE/FCNR accounts held by any person with any Bank in India. These accounts can be opened at all branches of Punjab National Bank.
  • Accounts can also be opened during temporary visits of NRIs to India against tender of foreign currency traveller cheques/notes.
  • The account is maintained in Indian Rupees (INR).
  • The remittance received in foreign currency for opening of NRE account will be converted into Indian Rupees at the prevailing exchange rates.
  • The account may be held jointly in the names of two or more NRIs/ PIOs on `either or survivor basis.
  • NRIs/ PIOs can hold the account jointly with a resident relative on ‘former or survivor’ basis (relative as defined in Companies Act, 2013).
  • Individual of Pakistan and Bangladesh requires prior approval of the Reserve Bank of India.

Types of accounts

Saving, Current, Fixed deposit & Recurring accounts.

  • Fixed deposits & Recurring deposits can be accepted for a minimum period of 1 year and maximum period of 10 years.

Advantages

  • Principal alongwith interest freely repatriable in any permitted currency.
  • Loans/overdrafts in rupees can be availed by NRI depositors or 3rd party against the security of term deposits. However, loans in foreign currency against NRE term deposits in India can be availed through our correspondent Banks.
  • Interest earned NRE accounts is exempt from Income Tax.
  • Facility for automatic renewal of deposits on maturity.

Premature withdrawal of term deposits

  • If NRE term deposit is sought to be withdrawn prematurely, interest will be allowed as applicable for the period for which the deposit remained with the Bankminus 0.5% penalty, provided the deposit has completed minimum period of 1 year.
  • No Interest is payable, where premature withdrawal of deposit takes place before completion of the minimum period prescribed i.e. one year.

Interest rates on NRE Deposits

Internet Banking Services for NRIs

Internet Banking Services-Application Form

ATM Application Form

Non-Resident (External) Account.

  • The a/c can only be opened in the name of NRI individuals – single/joint.
  • NRE accounts can be opened only by the NRI himself and not through the holder of the power of attorney.
  • Those Indian residents, who are in employment, studying and staying permanently abroad and foreign nationals (except of Pakistan and Bangladesh), with their origin in India.
  • Students proceeding abroad for higher studies are treated as Non-residents.

Saving Fund / Current Account / Recurring Deposit / Term Deposit (with maturity of minimum 1 year & maximum 10 years).

Indian Rupees

  • These accounts can be opened in Indian Rupees with / out of the funds received as foreign inward remittances in freely convertible currency through normal banking channel.
  • The Foreign Currency Travelers Cheques / Notes may be accepted during temporary visits of the NRI, for credit to account.
  • Transfers from rupee accounts of non-resident banks.

Yes

  • In the names of two or more non-resident individuals provided all the account holders are persons of Indian nationality or origin.
  • Resident close relative (relative as defined in Section 6 of the Companies Act, 1956 ) on ‘former or survivor’ basis. The resident close relative shall be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder

Nomination in favour of NRI/PIO or a resident is allowed in the account.

1 Year to 10 Year.

No. Interest income from NRE accounts is exempt under Income-tax rules.

No. Deposit held under NRE a/cs is not taxable under Wealth Tax.

Yes. Operations restricted to local disbursements (other than gifts to resident), including for investments subject to compliance of relevant regulations. But remittances / repatriation abroad may be made only to account holder.

At the request of all the joint holders, Bank may allow the addition or deletion of name/s of joint account holder/s, as per rules.

Yes. Funds (Principal & Interest) is fully repatriable in foreign currencies.

DEBIT-cum-ATM Card facility is available for NRE account holders. The same is provided, upon request.

Yes, the Internet Banking Service (IBS), including transactions facility is available to NRE a/c holders. The same is provided, upon request.For more details, please visit our website www.pnbindia.com LINK - INTERNET BANKING ....Internet Banking for NRIs.

Bank to pay interest at the originally contracted rate on the deposit amount for abovementioned days, intervening between the due date and the actual date of payment, on the succeeding working day.

Yes, for permitted purposes, as per RBI guidelines.

Can be extended against security of funds held in NRE Account either to the depositors or third parties without any ceiling subject to usual margin requirements.

Banks may allow NRE deposits NRIs/PIOs, who return to India for permanent settlement, to continue till maturity at the contracted rate of interest, if desired, as per rules.

Yes. At the request of the depositor, Bank allows premature withdrawal.

The guidelines prevailing at the time of cancellation will be applicable. However in NRE Sugam Term Deposit no penal interest is charged on premature closure.

  • Inward remittance to India in permitted currency,
  • Proceeds of account payee cheques, demand drafts / bankers` cheques, issued against encashment of foreign currency, where the instruments issued to the NRE account holder are supported by encashment certificate issued by AD Category-I / Category-II,
  • Transfers from other NRE / FCNR accounts,
  • Sale proceeds of FDI investments, interest accruing on the funds held in such accounts,
  • Interest on Government securities/dividends on units of mutual funds purchased by debit to the NRE/FCNR(B) account of the holder, certain types of refunds, etc

Local disbursements, transfer to other NRE / FCNR accounts of person eligible to open such accounts, remittance outside India, investments in shares / securities/commercial paper of an Indian company, etc.

International

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