• The accounts may be savings accounts or term deposits.
• Monies in this account are freely repatriable.
• Only foreign remittances, travelers cheques/ foreign currencies or proceeds of NRE
deposits or FCNR Deposits or interest on NRNR deposits should be deposited in this
• The maturity proceeds of NRNR deposits may also be credited to this account.
• No rupee funds should be credited to this account.
• Joint accounts are permitted provided all account holders are NRIs. A resident Indian
cannot be a joint account holder.
• NRE Savings holders can withdraw savings deposits at any time and therefore banks
should not mark any lien on these deposits.
• Power of attorney holders can operate the account for local payments and approved
• Repatriable term deposits can be made in the normal course for a minimum period of
one year and a maximum of three years.
• Loans against term deposits can be availed of for personal/ business purposes. However,
loans against term deposits cannot be taken for relending, agriculture/ plantation or for
investments in real estate
• Interest on savings accounts will be at domestic savings deposit rate (3 1/2% p.a..)
• On NRE fixed deposits for one to three years the interest rate should not exceed the
LIBOR/Swap rates for the US dollar of the corresponding maturity plus 75 basis points.
The LIBOR/ SWAP rates as on the last working day of the preceding month would form
the base for fixing ceiling rates for the interest rate. The interest rate for three year
deposits will apply in case maturity exceeds three years.
• Interest should be rounded to two decimal points.
• Can be freely converted to foreign currency nonresident (FCNR (B)) Deposits.
• Premature closing of NRE term deposits for investment in resident foreign currency
(RFC) account does not attract the provisions relating to premature withdrawal.
Foreign currency accounts
The different types of Foreign Currency accounts a nonresident may have are:
– Foreign Currency (Nonresident) Deposit Ac