NRE Account - Open Non-Residential External in India at SBI - NRI
Non-Residential External
NRE Account
- Features
- Eligibility
- Permissible Credits
- Types Of NRE Accounts
- Premature Withdrawals
- Loans Against NRE Deposits
- Funds Transfer From NRE To Overseas Account
- Procedure To Open An NRE Account
- Joint Account Of Non-residents With Residents
Non-Residential External - NRI
Features of Non-Resident External (NRE) Account
- SMS Alerts
- Multi-City Cheque book (MCC)
- International or Domestic Debit Card
- Internet banking
- NRI Family Card
- To park your overseas earnings remitted to India and converted to Indian Rupees
- NRE 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- Account can be withdrawn for making local payments in Rupees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
- Tenor Of Deposits (TDR/STDR/RD) Minimum period of 1 year
- Tenor Of Deposits (TDR/STDR/RD) Maximum period of 10 years
- Interest income is exempted from Indian income tax
Eligibility For NRE Account Opening
| Eligibility Conditions For Opening Of Resident Indian Or Nri Accounts | ||||
|---|---|---|---|---|
| Account Type | Domestic / Resident Accounts | Non Resident Ordinary (NRO) Accounts | Non Resident External (NRE) Accounts | Foreign Currency Non-resident (Bank) {FCNR (B)} Accounts |
| Residential Status | ||||
| NRI | Not-permitted 1 | Permitted2,7 | Permitted2 | Permitted2 |
| PIO | Not-permitted1 | Permitted 2, 3, 7 | Permitted2, 3 | Permitted2, 3 |
| OCI | Permitted in certain cases1.1 | Permitted2, 3, 7 | Permitted2, 3 | Permitted2, 3 |
| Foreign Nationals on employment in India | Permitted3, 4 | Not-permitted4 | Not-permitted | Not-permitted |
| Foreign Students studying in India | Not-permitted | Permitted3, 5 | Not-permitted | Not-permitted |
| Foreign Tourists on short visit to India | Not-permitted | Permitted3, 6 | Not-permitted | Not-permitted |
To know more about the NRE account details & benefits, visit our nearest branch.
1 However a joint account with Resident Indian (RI) who is a close relative can be opened subject to following conditions:
- Mode of operation permitted is 'Either or Survivor' only
- The RI will be the primary/first account holder in the joint account and NRI (PIO / OCI) will be the second applicant
1.1 When OCI comes to India with an intention to stay for an indefinite period and stays more than 182 days, he/she loses the privileges available to NRIs/PIOs/OCIs. Such OCI is required re- designate / convert his/her NRE/NRO/FCNR Accounts to resident account, or NRE/FCNB account to RFC account as the case may be. Further, an OCI can open all types of accounts allowed to a Resident customer.
2 A joint account with Resident Indian (RI) who is a close relative can also be opened subject to following conditions:
- Mode of operation permitted is 'Former (NRI) or Survivor' only
- The NRI (PIO / OCI) will be the primary/first account holder in the joint account and RI will be the second applicant
3 Following conditions applicable:
- Pakistani National will require a prior approval from RBI before opening the account.
- Bangladesh National to have a valid visa and residential permit issued by Foreigner Registration Office (FRO) / Foreigner Regional Registration Office (FRRO) concerned.
4 Foreign nationals who come to India on employment and on leaving the India can convert their Domestic account to NRO account, to enable them to receive their legitimate dues subject to certain conditions. But, continuation of account beyond 6 months will require RBI’s approval.
5 NRO account be opened for Foreign Students studying in India on the basis of his/her passport (with appropriate visa & immigration endorsement) which contains the proof of identity and address in the home country along with a photograph and a letter offering admission from the educational institution, subject to following:
- Within a period of 30 days of opening the account, the foreign student should submit to the branch where the account is opened, a valid address proof giving local address, in the form of a rent agreement or a letter from the educational institution as a proof of living in a facility provided by the educational institution. Banks should not insist on the landlord visiting the branch for verification of rent documents and alternative means of verification of local address may be adopted by banks.
- During the 30 days period, the account should be operated with a condition of allowing foreign remittances not exceeding USD 1,000 into the account and a cap of monthly withdrawal to Rs. 50,000/-, pending verification of address.
- On submission of the proof of current address, the account would be treated as a normal NRO account, and will be operated in terms of extant instructions.
6 Continuation of account beyond 6 months will require RBI’s approval.
7 NRIs (including PIO / OCI) residing in Nepal or Bhutan are not permitted to open NRO account.
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
- Interest Rates
- Please click here for NRE Savings Bank account
- Please click here for NRE Deposits (TDR / STDR / RD)
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 NRE 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
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
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
Premature Withdrawals
- Below Rs.1 Crore - 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- Up to Rs.5.00 lacs
- Penalty (All Tenors : 0.50%
- Description: Above Rs.5.00 lacs but below Rs.1 Crore
- Penalty (All Tenors) : 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.
- Effective 01st April 2017, Penalty for Premature Withdrawal for Retail Term Deposits upto Rs.5.00 lacs will be 0.50% (all tenors).
- Rs.1 Crore & Above - No interest on withdrawals before one year
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
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:
- Please login to your INB account
- Click on ‘Profile’ tab
- Enter your profile Password
- Click on ‘Manage Beneficiary’
- Click on ‘Outward Remittance Beneficiary for NRE / FCNR (B) Account’
- Enter details of beneficiary and submit it after entering OTP sent on your registered mobile number
Procedure for placing the remittance request:
- Please login to your INB account
- Click on ‘Payments / Transfers’ tab
- Click on ‘International Funds Transfer’ appearing in the column on left hand side
- Click on ‘NRI - Outward / Inward Transfer / Remittances’
- 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
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);
- they are members of a Hindu Undivided Family;
- they are husband and wife; or
- one person is related to the other in such manner as may be prescribed;
- Father (Provided that the term “Father” includes step-father)
- Mother (Provided that the term “Mother” includes step-mother)
- Son (Provided that the term “Son” includes step-son)
- Son’s wife
- Daughter
- Daughter’s husband
- Brother (Provided that the term “Brother” includes step-brother)
- Sister (Provided that the term “Sister” includes step-sister)
Last Updated On : Monday, 16-09-2024
Interest Rates
6.00% p.a.
for loan amount up to Rs. 2 lacs
8.15% p.a.
for loan amount > Rs. 2 lacs up to Rs. 6 lacs
