Particulars

Non-Resident (External)Rupee Account (NRE Account)

Who can open an account

NRIs individuals.

(Opening of accounts by Bangladesh / Pakistan nationals require prior approval of RBI)

Joint account with another non resident(s)

Permitted

Joint account with another resident

 Permitted (The account can be in the joint names of the  Non Resident holder and the resident 'relative' with the operating instruction "Former or Survivor".  The term 'relative' will be as defined in the Companies Act 1956.

Nomination facility

Permitted

Currency in which account is denominated

Indian Rupees

Repatriable

Repatriable

Type of Account

Savings, Current, Recurring, Fixed Deposit

Period for fixed deposits

Minimum one year and Maximum ten years

Rate of Interest

Please see the Interest rate table.

Operations by Power of Attorney in favour of a resident by the non-resident account holder

Operations on the account in terms of Power of Attorney are restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels.

1.     Loans

a.      In India

i) to the Account holder

ii) to Third Parties

Permitted

Permitted

b.    Abroad

i) to the Account
holder

ii) to Third Parties

Permitted provided loan funds are used abroad.

Permitted provided loan funds are used abroad

c.     Foreign Currency Loans in India
i) to the Account holder

ii) to Third Parties

Not Permitted

Not Permitted

2.     Purpose of Loan

a.     In India

To the Account holder

a.     Personal purposes or for carrying on business activities

b.     Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms / companies

c.     Acquisition of flat / house in India for his own residential use.

To Third Party

Fund based and / or non-fund based facilities for personal purposes or for carrying on business activities.