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On-Resident And foreign Curreny Bank Accounts
1. How can remittances be made into India?

Ans. Remittances into India can be made only through normal banking channels.

However, Exchange Houses in the Gulf region are permitted to send remittances on behalf of their non-resident clients by means of Demand Drafts (DDs), Mail Transfers (MTs) and Telegraphic Transfers (TTs) on banks in India and drawn / specified in rupees.

2. Whether prior approval of Reserve Bank is required for opening and maintaining of bank accounts in India by non-residents?

Ans. Non-residents can open and maintain bank accounts in India with any authorised dealer or any other bank authorised in this regard. No approval of Reserve Bank is required for opening of bank accounts in India by non-residents.

3. Who deals with the opening and maintaining of accounts by non-residents?

Ans. Authorised dealers are permitted to open and maintain accounts in the names of non-residents. Authorised banks are also permitted to open and maintain certain specified accounts of non-residents. Post offices in India are permitted only to open and maintain Ordinary Non-Resident Rupee Accounts.

4. What are the types of accounts, which can be opened and operated by non-residents?

Ans. Types of accounts, which can be opened and operated in India, can be classified under the following heads:

A. Classification based on currency of account:

i.Indian rupee accounts (NRO / NRSR / NRNR / NRE / QA.22 accounts)
ii.Foreign currency accounts (FCNR / EEFC / RFC accounts and other foreign currency accounts)

B. Classification based on repatriability of funds:

i.Repatriable accounts (NRE / FCNR accounts)
ii.Non-repatriable accounts (NRO / NRSR / NRNR / QA.22 accounts)

5. What is the position of existing bank account in India on a resident becoming non-resident?

Ans. On a person resident in India becoming a non-resident, the existing banks accounts in India will be re-designated as Ordinary Non-Resident Rupee (NRO) Accounts.

6. Which non-residents are treated as residents for opening and maintaining of banks accounts in India?

Ans. The following persons, though non-residents, are treated as residents in India for opening and maintaining of bank accounts in India:

a. Indians, Nepalese or Bhutanese resident in Nepal or Bhutan.
b. Offices and branches situated in Nepal or Bhutan of any business carried on by a company or a corporation incorporated or established under any law in force in India, Nepal or Bhutan.
c. Offices and branches situated in Nepal or Bhutan of any business carried on as a partnership firm or otherwise by Indians, Nepalese or Bhutanese.

7. Which Indian nationals, who are abroad, are not allowed to open banks accounts in India?

Ans. Indian nationals who proceed abroad for purposes such as business, temporary assignments, medical treatment, higher studies, training, participation in seminars, etc., are treated as residents and therefore cannot open any non-resident accounts in India.

8. Whether Pakistani / Bangladeshi individuals / entities are allowed to open bank accounts in India?

Ans. Pakistani / Bangladeshi individuals / entities can open banks accounts in India only with specific approval of Reserve Bank.

9. How can remittances be made into India?

Ans. Remittances into India can be made only through normal banking channels.

However, Exchange Houses in the Gulf region are permitted to send remittances on behalf of their non-resident clients by means of Demand Drafts (DDs), Main Transfers (MTs) and Telegraphic Transfers (TTs) on banks in India and drawn / specified in rupees.
Ans. Remittances into India can be made only through normal banking channels.

However, Exchange Houses in the Gulf region are permitted to send remittances on behalf of their non-resident clients by means of Demand Drafts (DDs), Mail Transfers (MTs) and Telegraphic Transfers (TTs) on banks in India and drawn / specified in rupees.

2. Whether prior approval of Reserve Bank is required for opening and maintaining of bank accounts in India by non-residents?

Ans. Non-residents can open and maintain bank accounts in India with any authorised dealer or any other bank authorised in this regard. No approval of Reserve Bank is required for opening of bank accounts in India by non-residents.

3. Who deals with the opening and maintaining of accounts by non-residents?

Ans. Authorised dealers are permitted to open and maintain accounts in the names of non-residents. Authorised banks are also permitted to open and maintain certain specified accounts of non-residents. Post offices in India are permitted only to open and maintain Ordinary Non-Resident Rupee Accounts.

4. What are the types of accounts, which can be opened and operated by non-residents?

Ans. Types of accounts, which can be opened and operated in India, can be classified under the following heads:

A. Classification based on currency of account:

i.Indian rupee accounts (NRO / NRSR / NRNR / NRE / QA.22 accounts)
ii.Foreign currency accounts (FCNR / EEFC / RFC accounts and other foreign currency accounts)

B. Classification based on repatriability of funds:

i.Repatriable accounts (NRE / FCNR accounts)
ii.Non-repatriable accounts (NRO / NRSR / NRNR / QA.22 accounts)

5. What is the position of existing bank account in India on a resident becoming non-resident?

Ans. On a person resident in India becoming a non-resident, the existing banks accounts in India will be re-designated as Ordinary Non-Resident Rupee (NRO) Accounts.

6. Which non-residents are treated as residents for opening and maintaining of banks accounts in India?

Ans.The following persons, though non-residents, are treated as residents in India for opening and maintaining of bank accounts in India:

a. Indians, Nepalese or Bhutanese resident in Nepal or Bhutan.
b. Offices and branches situated in Nepal or Bhutan of any business carried on by a company or a corporation incorporated or established under any law in force in India, Nepal or Bhutan.
c. Offices and branches situated in Nepal or Bhutan of any business carried on as a partnership firm or otherwise by Indians, Nepalese or Bhutanese.

7. Which Indian nationals, who are abroad, are not allowed to open banks accounts in India?

Ans. Indian nationals who proceed abroad for purposes such as business, temporary assignments, medical treatment, higher studies, training, participation in seminars, etc., are treated as residents and therefore cannot open any non-resident accounts in India.

8. Whether Pakistani / Bangladeshi individuals / entities are allowed to open bank accounts in India?

Ans. Pakistani / Bangladeshi individuals / entities can open banks accounts in India only with specific approval of Reserve
Bank.

9. How can remittances be made into India?

Ans. Remittances into India can be made only through normal banking channels.

However, Exchange Houses in the Gulf region are permitted to send remittances on behalf of their non-resident clients by means of Demand Drafts (DDs), Main Transfers (MTs) and Telegraphic Transfers (TTs) on banks in India and drawn /specified in rupees.



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