NRE Savings Account FAQs
NRE savings account in India can be opened by any NRI or PIO. This account is opened using a foreign currency which allows the user to convert foreign currency into Indian rupees at the prevailing rate of conversion. The NRE account is re-designated as a resident account when the account holder returns to India. NRE account is one of the options for NRI Savings Account.
Who is an NRI?
A ‘Non Resident Indian’ is a person who resides outside India but is an Indian citizen.
A ‘Person of Indian Origin’ is a person residing outside India who is a citizen of any other country other than Bangladesh or Pakistan or other such country as may be specified by the Central Government. A PIO will also include an ‘Overseas Citizen of India’ cardholder within the meaning of Section 7(A) of the Citizenship Act, 1955. Such an OCI card holder should also be a resident outside India.
The minimum balance required in private banks for NRE account is about Rs. 5000 to Rs. 10,000. The public sector banks have a lower minimum balance requirement of Rs. 1000. So, an NRE account in public sector bank is more preferable.
Some of the basic documents required to open a savings account are photocopy of the passport pages which contain personal and passport details, copy of valid visa or work permit, passport photo of the applicant and document for address proof (address of India or overseas). The address should match with the one entered in the form.
Yes, the principal and the interest amount both are repatriable.
Interest earned on this account is not taxable in India.
Yes, the account can be opened with any currency that is convertible into Rupees.
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