Correspondent Banking and NRI Accounts
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What is correspondent banking's primary purpose?
Enables banks to serve foreign customers without physical branches through mutual account relationships.
Name the four types of foreign currency accounts in correspondent banking.
Nostro, Vostro, Loro, and Mirror accounts.
What does SWIFT stand for and what is its main function?
Society for Worldwide Interbank Financial Telecommunications; secure financial messaging network, not a settlement system.
Who owns SWIFT and where is it headquartered?
Member banks and financial institutions own it; headquartered in Brussels, Belgium.
What is the residency criterion for NRI classification under Income Tax Act?
Indian citizen residing outside India for combined 183+ days in a financial year is NRI.
Can NRE account interest exceed domestic rupee deposit rates?
No, NRE interest cannot exceed comparable domestic rupee deposit rates per RBI rules.
What is the annual repatriation cap for NRO account principal?
USD 1 million per financial year per account holder; unused portion non-carryable.
List eligible currencies for FCNR(B) accounts.
USD, EUR, GBP, JPY, CAD, AUD (freely convertible currencies only).
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