Reserve Bank of India vide A.P.(DIR Series) Circular No 28 dt March
4, 2002 have notified the closure of NRNR and NRSR schemes w.e.f. 1st April, 2002
Eligibility
Any person resident outside India may open
NRNR A/c.
Opening of Account in the name of
individuals / entities of Bangladesh / Pakistan nationality / ownership is not permitted.
Types of Accounts
Accounts can only be in the form of term
deposits for periods ranging from 6 months to 3 years.
Opening of Account
NRNR A/c can only be opened and
maintained in Indian Rupees (INR) out of funds remitted from outside India.
Accounts can also be opened by transfer of
funds from the person's existing NRE Account / FCNR Account.
Premature withdrawal of NRE Account / FCNR
Account for opening NRNR Account with other banks / dealers shall attract penalty.
Rate of Interest
The rates of interest offered by various
Banks in India differ.
It is beneficial to ascertain the best of
the rates offered by various banks before investing with any particular Bank.
Click Here for Interest Rates offered by various Banks and an
analysis of the same.
Loans against balances held in the
account
- Loans / Overdrafts are granted to the account holder against
security of fixed deposits for:
- Personal purposes or for carrying on business activities.
- Loans cannot be used for:
- re-lending;
- carrying on agricultural / plantation activities; or
- investment in real estate business.
- Loans / Overdrafts are also granted to third parties
resident in India:
Conditions to be fulfilled:
Loan should be utilised for personal
purposes or for carrying on business activities.
Loans cannot be used for:
- re-lending;
- carrying on agricultural / plantation activities; or
- investment in real estate business.
Repayment of loans shall be:
- by way of inward remittance;
- by debit to NRE Account / FCNR Account / NRO Account / NRSR
Account / NRNR Account of the depositor; or
- by adjustment against maturity proceeds of deposit.
Repayment of loans availed by third parties may be out of their own resources.
Nomination / Cancellation
Funds lying in the NRNR Account on the
death of an account holder can only be credited to the NRO Account / NRSR Account / NRNR
Account of his non-resident nominee.
Joint Accounts
Non-Residents can also open joint accounts
with residents in India.
Repatriability of Interest
Interest accrued on these deposits is
repatriable.
Renewal / Transfer of
the Deposit Amount
The principal amount and the interest
accrued thereon can be renewed further.
Gifting of the
Deposit
The amount of deposit can be gifted by the
account holder to any resident / non-resident / recognised charitable trust.
Tax Liability
Interest income from NRNR deposits is
exempted from Income tax.
The deposit is exempted from gift tax for
one time gifting in case of NRIs only.
Exemption from Income tax will not be
available to resident donee or those residents who being joint holders become owners of
the deposit as survivors.
For any information regarding the Non -Resident (Non-Repatriable) Rupee Deposit Scheme (NRNR
A/c), please visit the FAQ section |
