Skip to main content

Accounts for NRIs... :-)

Well, most of us dream to be into this section of ppl, not because of their flamboyant lifestyle, but for the VAS they are provided with ...( VAS - VALUE ADDED SERVICES)

  • The most popular accounts are the NRE and NRO accounts.

NRE ACCOUNT

  • An NRE (non-resident external) accounts gives an individual the opportunity to deposit money earned from abroad.
  • It can be either in the form of a savings or current or term deposit account.
  • Apart from the account holder, a resident can also operate the NRE account for making local payments as long as he has the power of attorney.

NRO ACCOUNT

  • NRO (non-resident ordinary) account gives one the privilege of depositing overseas earnings as well as Indian earnings.
  • An NRO account can be in the form of saving, current and term deposit account.
  • However, one can have a resident of India as a joint account holder.
  • Income arising in foreign currency, remittances received through proper banking channel or from NRE account and any past dues from India can be deposited in this account.
  • But money once deposited in this account can only be withdrawn for local payments including investments.

Process for opening NRO/NRE account

  • The process is similar for both accounts.
  • To open an NRO or NRE account, one has to make a request with an authorised bank.One is then is required to submit documents like utility bill, driving licence, resident permit, rent received, passport and overseas or Indian bank statement.Also, the minimum fund has to be remitted to India either as forex remittance and transfer from existing NRE account.

What’s the difference between NRE and NRO account?

  1. An NRE account is for depositing income from abroad
  2. NRO account is mainly for putting Indian incomes.
  3. In NREs only NRIs can become joint account holders but in NROs both resident and non-resident can become joint account holders.
  4. Funds from NRE account can be transferred to NRO account but the reverse is not possible.
  5. One can freely repatriate the principal amount from the NRE account but not from the NRO account. The principal amount lying in the NRO account can be used only for local payments.
Labels:

Comments

Post a Comment

Popular posts from this blog

Agriculture - Oxygen for manyyyy

Talking on agriculture, About 75% of the Indian population lives in rural areas and about 80% of this population is dependent on agriculture for its livelihood.Agriculture accounts for about 37% of the national income. The development of the rural areas and of agriculture and its allied activities thus becomes vital for the rapid development of the economy as a whole. Agricultural Productivity Even though India occupies the first or second position in the world in several crops in terms of area and production, it's rank in terms of productivity per hectare in the world is 52 for rice, 38 for wheat and much low in several other crops. The productivity of some crops is not only low but also remained stagnant over the years. The yield gap needs to be bridged through an integrated package of technology and agricultural policies to reap the untapped production potential, particularly, in rain-fed and other low productivity areas. What the INDIA INC says abt it? A...
6 comments
Read more

Day 5 # liveankit's logo unveiled...

Day 5 for liveankit, 615 visitors( the time when i typed it..), the logos for liveankit have been unveiled and i keep the finalization decision on u, as per the poll, i'll finalize the logo havin maximum votes... The day was good for me.. bit busy full day, so most of the clicks on website today are by u ppl, i am really happy with the way u guys are reacting to my blog, almost everyone told me to add information, as it is meaningful( not talking of my personal storiesssssss :):) :) talkin of economy topicss)  Thts not enough, i need your further support, Last evening i decided to be slim( i hope my photos tell u tht i have xtraa(Raise the power to 10) poundss... i wrote the same on the blog, I have been taking tips, two ppl are actively taking interest in this regard, the two cool friends of two diff countries Mandi Dabwali and SIWAN.... Let me tell u something in one paragraph :) The last time when i went on dieting... Waist became 36 from 28 Avoided eating butter , so started ea...
14 comments
Read more

New Journey!!! - Plannin to write my blog

Well, I m no Amitabh Bachhan, No Aamir Khan, tht ppl will be reading my blog or will be finding it worth reading. All i know is tht i am getting inspired from Ankur to write it. This is my opening post meant to be read for ppl close to me.   Its 10:10pm now, September 25 th 2008 , I have decided to replicate the high flying Blogging concept whilst I know I have the slightest listeners. Holidays have started, No great work to do these days, except getting inclined to TV and gossips, ‘Roz ki faaltu baatein’ would be the core activity in my list regularly till 5 th October.   Will be missing my college buddies, Its always a dependence tht gets created when you meet the same ppl regularly, The best and worst part of “Chhutiyan-Holidays’ is the “ending/missing of monotonous routine” , on one side I m happy tht this break would end up my daily 9 to 6 college routine and on the same time I will be / already started missing my friends and foes J . Tension mat lo, foes are an import...
15 comments
Read more