|
Non
Resident Non Repatriable (NRNR)
NRIs and other non-residents can maintain NRO rupee accounts
as well as keep deposits with banks in India under NRNR Rupee Deposit
Scheme.
Such an account can be opened with an authorised dealer
in India by remitting funds from abroad in any convertible foreign currency.
Under the NRNR Scheme, deposits designated in rupees can be kept for periods
ranging from 6 months to 3 years. NRIs can also open such accounts by
transferring funds from their existing NRE/FCNR accounts. No penal interest
is chargeable for premature withdrawal of NRE/FCNR deposits for the purpose
of making investment in the scheme if the deposit is to be kept with the
same authorised dealer.
Remittances for credit to rupee accounts (i.e. NRE/NRO/NRNR/NRSR
accounts) maintained by NRIs are converted at the market rate.
The principal amount of the deposit is not eligible for
repatriation. Interest earned up to 30th September 1994 is also not eligible
for repatriation. Interest earned for the period beginning 1st October
1994 is, however, eligible for repatriation or can be utilised for opening
fresh NRE/FCNR deposits, or can be credited to existing NRE accounts.
Only the principal amount of deposit could be renewed
under the scheme upto 30th September 1994. However, since interest accrued
for the period from 1st October 1994 is repatriable, the principal amount
together with interest accrued for the period from 1st October 1994 can
be renewed under the scheme.
Can you take a loan/overdraft against your NRO/NRE/NRNR
account? Yes, except for the purpose of relending, carrying on agricultural/plantation
activities or for investment in real estate business.
Loans against NRE fixed deposits can, however, be utilised
for investments in India on non-repatriation basis, in certain specified
areas and for acquisition of flats/houses subject to prescribed conditions.
Loans/overdrafts in India, against the security of NRNR deposits may be
granted by the authorised dealer to account holders/third parties for
personal purposes or for carrying on business activities and not for carrying
on agricultural/plantation activities or real estate business, or for
relending, subject to their normal commercial judgement. Repayment of
loans/liquidation of overdraft to the account holder shall be by way of
inward remittance from outside India through normal banking channels or
by debit to NRE/FCNR/NRO/NRNR/NRSR account of the depositor or by adjustment
against maturity proceeds of deposit. Repayment of loans availed by third
parties may be made out of their own resources.
Click
here
to know about interest rates.
Disclaimer:
The publisher and author of this column declares that the content if this
column are of general nature. Surfers are advised to use their own discretion
to use the information from this column. The publisher and author of this
column are not liable for any consequences of using the information from
this column.
| 
