SBI NRI Services - NRE Account

Overview

  • To park your overseas earnings remitted to India and converted to Indian Rupees
  • Account can be opened either individually or jointly with other NRIs / PIOs / OCIs
  • Account types permissible:
    • Savings Bank
    • Current Account
    • Term Deposit
    • Special Term Deposit
    • Recurring Deposit
  • Funds deposited in the account will be in the form of fresh remittances from overseas or transfer from other NRE / NRO / FCNR (B) accounts
  • Account can be opened with close resident relatives on "former or survivor" basis
  • Account can be withdrawn for making local payments in Rupees
  • Interest earned on NRE accounts is exempt from Indian Income tax
  • Rupee loan available against NRE Deposits
ELIGIBILITY FOR NRE ACCOUNT OPENING

Eligibility for NRE account opening:

Please click here to know about the eligibility requirements for opening an NRE account

PERMISSIBLE CREDITS

Permissible Credits

  • Transfer from another NRE / FCNR (B) account
  • Transfer from another NRO account (subject to limit)
  • Fresh remittance from abroad through banking channel
  • Personal cheques drawn on foreign account
  • Proceeds of Foreign Currency Notes / Travelers cheques tendered by NRI / PIO / OCI, while visiting India. Amounts in excess of USD 5000 (or equivalent) in currency or USD 10,000/- (or equivalent) in Travelers cheques should be accompanied by a Currency Declaration Form
  • Drafts issued by bank / exchange companies abroad
  • Interest, dividend and maturity proceeds of investments made in India etc on repatriable basis
TYPES OF NRE ACCOUNTS & DEPOSITS

Savings Bank (SB) / Current Account -

  • Rupee denominated account
  • Account can be opened with a zero balance
  • It is preferable to fund the account upfront to avoid payment of charges for non-maintenance of Minimum Average Balance
  • Interest is paid quarterly on the daily balance in Savings Bank account. No interest is paid in Current Account.
  • Minimum Deposit:
    • In General Branches: As per MAB (Minimum Average Balance) criteria
    • In Personal Banking Branches: Minimum total customer account/deposit balance should be Rs. 1 lakh for Metro / Urban areas and Rs. 50,000 for Semi-Urban / Rural areas
  • Principal & interest amount are fully repatriable
  • Nomination facility available

Term Deposits (TDR) -

  • Rupee deposits of fixed tenure
  • Account can be opened with a zero balance
  • Interest is paid quarterly on Term Deposit Receipts (TDRs). It can be credited to the NRE Savings Bank account as per request of the customer.
  • Minimum Deposit:
    • In General Branches: Rs. 1000/-
    • In Personal Banking Branches: Minimum total customer account/deposit balance should be Rs. 1 lakh for Metro / Urban areas and Rs. 50,000 for Semi-Urban / Rural areas
  • Principal & interest amount are fully repatriable
  • Nomination facility available
  • You can avail a loan/overdraft against your deposit
  • Premature withdrawal permissible
  • Automatic renewal on maturity for the same period but at the then prevailing rate of interest, if there are no instructions for renewal

Special Term Deposits (STDR) -

  • Rupee deposits of fixed tenure
  • Interest gets compounded every quarter. It is paid on maturity with the Principal.
  • Minimum Deposit:
    • In General Branches: Rs. 1000/-
    • In Personal Banking Branches: Minimum total customer account/deposit balance should be Rs. 1 lakh for Metro / Urban areas and Rs. 50,000 for Semi-Urban / Rural areas
  • Principal & interest amount are fully repatriable
  • Nomination facility available
  • You can avail a loan/overdraft against your deposit
  • Premature withdrawal permissible
  • Automatic renewal on maturity for the same period but at the then prevailing rate of interest, if there are no instructions for renewal

Recurring Deposits (RD) -

Want to create a fund for your children's education or marriage or to buy a house or for a dream holiday? Whatever may be your financial goals, through our Recurring Deposit Scheme, you can save a little every month so that at the time of need you have sufficient funds to achieve your financial goals. So, set aside a small amount every month and earn at compounded rates of interest.

  • Minimum monthly installment of Rs.100/-
  • Principal & interest amount are fully repatriable
  • Nomination facility available
  • You can avail a loan/overdraft against your deposit
  • Premature withdrawal permissible
  • No automatic renewal will happen, if there are no instructions for renewal
TENOR OF DEPOSITS (TDR/STDR/RD)

Tenor of Deposits (TDR / STDR / RD):

  • Minimum period of 1 year
  • Maximum period of 10 years
INTEREST RATES

Interest Rates:

  • Please click here for NRE Savings Bank account
  • Please click here for NRE Deposits (TDR / STDR / RD)
PREMATURE WITHDRAWALS

Premature Withdrawals:

Tenors Below Rs.1 Crore Rs.1 Crore & Above
Premature withdrawal No interest is payable if the deposit is withdrawn before one year. No interest is payable if the deposit is withdrawn before one year.
  • Effective 01st April 2017, Penalty for Premature Withdrawal for Retail Term Deposits upto Rs.5.00 lacs will be 0.50% (all tenors).
    Description Penalty (All Tenors)
    Up to Rs.5.00 lacs 0.50%
    Above Rs.5.00 lacs but below Rs.1 Crore 1%
  • The interest shall be 0.50% or 1% below the rate applicable at the time of Deposits for the period Deposit has remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower.
 
TAX IMPLICATIONS

Tax Implications:

Interest income is exempted from Indian income tax

LOANS AGAINST NRE DEPOSITS

Loans against NRE Deposits:

You can avail a loan in Indian rupees against the security of NRE - TDR / STDR / RD deposits. The loan may be used to meet emergency financial requirements, to carry on business activities, for direct investment in India or for acquiring a flat / house in India.


You need not close the deposit prematurely, and can avail the loan at the branch where you maintain the deposit, as an overdraft or as a demand loan. Maximum loan of 90% of the face value of deposit including the interest accrued. The applicable interest rate on loan against Deposits is @ 1.00% over the rate paid on the relative deposit offered as security. For more information, please click here.

OTHER FACILITIES

Other Facilities:

You can avail following facilities with your NRE account:

  • SMS Alerts
  • Multi-City Cheque book (MCC)
  • International or Domestic Debit Card
  • Internet banking
  • NRI Family Card
FUNDS TRANSFER FROM NRE TO OVERSEAS ACCOUNT

Funds transfer from NRE to overseas account:

The funds in NRE Savings Bank account and deposits are fully repatriable i.e. funds can be transferred to any overseas account. You can place a request for transfer of funds as per any of the following mode:

  • Through Internet Banking (INB):For placing outward remittance or funds transfer request (forex) favouring yourself or third party from your NRE Savings Bank account or NRE fixed deposit account or FCNR (B) account holders to any account overseas. For this, you have to first add a ‘beneficiary’ and then place a request for remittance in his/her favour. The ‘beneficiary’ is to be added only once and the details thereof will be stored in our system, thereby enabling you to send multiple remittances to him/her at any time subsequently.
  • Procedure to add beneficiary for remittance:
  1. Please login to your INB account
  2. Click on ‘Profile’ tab
  3. Enter your profile Password
  4. Click on ‘Manage Beneficiary’
  5. Click on ‘Outward Remittance Beneficiary for NRE / FCNR (B) Account’
  6. Enter details of beneficiary and submit it after entering OTP sent on your registered mobile number
  • Procedure for placing the remittance request:
  1. Please login to your INB account
  2. Click on ‘e-Services’ tab
  3. Click on ‘NRI Services’ appearing in the column on left hand side
  4. Click on ‘Outward Remittance from NRE / FCNR (B) Account’
  5. Please select / enter request details and proceed accordingly
  • Through Branch: Please download a standard request letter by clicking on ‘For outward remittance from NRE / FCNR (B) account’ from ‘Download Forms’ and post / courier it your home branch. Please note that such request coming through email cannot be acted upon, due to security reasons.
PROCEDURE TO OPEN AN NRE ACCOUNT

Please fill up the account opening application as per any of the following mode and send it to bank accordingly:

  • Please click here to fill it online as per the process mentioned.
  • Please click here to download the account opening application, fill it manually and send it to your preferred home branch in India along with the attested copies of proofs & documents selected for KYC in the application.
  • Please fill and submit application along with proofs & documents selected for KYC in the application by visiting a SBI branch in India or overseas.
JOINT ACCOUNT OF NON-RESIDENTS WITH RESIDENTS

Joint account of Non- Residents with Residents:

NRI/PIO/OCI customers are permitted to open and maintain their NRE accounts with their resident relative(s) (as mentioned below) as a joint holder on “Former or Survivor” basis (NRI/PIO/OCI being the former);

(i) they are members of a Hindu Undivided Family;

(ii) they are husband and wife; or

(iii) one person is related to the other in such manner as may be prescribed;

1) Father (Provided that the term “Father” includes step-father)

2) Mother (Provided that the term “Mother” includes step-mother)

3) Son (Provided that the term “Son” includes step-son)

4) Son’s wife

5) Daughter

6) Daughter’s husband

7) Brother (Provided that the term “Brother” includes step-brother)

8) Sister (Provided that the term “Sister” includes step-sister)