Banks holding authorized dealers' licenses (i.e. banks authorized to deal in foreign exchange) or banks specifically authorized in this behalf by the RBI can only maintain accounts in the names of NRIs. Certain co-operative/commercial banks (referred to as authorized banks) have been specifically permitted to maintain accounts of NRIs expressed in rupees even though they are not authorized dealers.

Yes. Accounts can be maintained by NRIs in rupees as well as in foreign currency. However, note that accounts in foreign currencies can be maintained with authorized dealers only.

NRO and NRE accounts can be maintained in current/savings/ fixed deposit form while NRNR accounts can be only in fixed term deposits.

No

Yes, but only for local payments to be made on behalf of the account holder. In cases where the account holder or a bank designated by him has been granted permission by the RBI to make investment in India, the Power of Attorney holder (POA) is permitted to operate the account or facilitate such investment. POA holders cannot, however, make gifts from NRE accounts.

In the case of NRE accounts, the interest rates for deposits up to one year should not exceed bank rate minus two percentage points. Interest rates on term deposits of over one year are determined by the banks themselves. Interest rates on NRO accounts are fixed as in the case of domestic deposits.

Yes. Debits for local payments are allowed freely. Funds representing legitimate dues of the accounts holder or proceeds of remittances received from abroad through banking channels are permitted to be credited freely.

Debits for local payments/investments are allowed freely. Credits to an account, of funds emanating from a local source would be permissible only if the funds are of a repatriable nature i.e. eligible to be remitted abroad.

Funds held in NRE accounts can be repatriated abroad freely. Funds held in NRO accounts which would generally be from a local source cannot be repatriated outside India. Interest earned on funds in NRO accounts during the financial year 1994-95 and onwards can however, be remitted to the extent permitted by the Reserve Bank of India.

Yes. Except for the purpose of relending, carrying on agricultural/plantation activities or for investment in real estate business. Loans against NRE fixed deposits can, however, be utilized for investments in India on non-repatriation basis, in certain specified areas and for acquisition of flats/houses subject to prescribed conditions

While interest on loans up to Rs 2 lakh against NRO/NRE fixed deposit accounts will be charged two percent above the rates paid banks for the concerned deposits, repayment of loans will have to be made either by adjustment of the deposits or by fresh remittances from abroad. Banks are free to charge interest on loans above Rs. 2 lakh.

A non repatriable (NRNR) rupee deposit account can be opened with an authorized dealer in India by remitting funds from abroad in any convertible foreign currency. Under the NRNR scheme, deposits designated in rupees can be kept for periods ranging from six months to three years.

NRIs can also open such accounts by transferring funds from their existing NRE/FCNR accounts. No penal interest is chargeable for premature withdrawal of NRE/FCNR deposits for the purpose of making investments in the scheme if the deposit is to be kept with the same authorized dealer.

No. Banks have been advised to continue to pay interest at the contracted rate till the maturity of the deposit if the deposit is held for the full term even after conversion to resident rupee account.

No. While the premature withdrawal would be allowed, no interest would be payable. For such premature withdrawals the bank may levy penalty as per their discretion.

Yes. Banks have been permitted to offer interest on such deposits at rates not more than the LIBOR prevailing on the last working day of the previous week for the relevant maturity and currency. Subject to this guideline, banks can offer either fixed or floating rate of interest on such deposits.