PERMISSIBLE CREDITS AND DEBITS, JOINT HOLDING AND POWER OF ATTORNEY, PROCEDURE FOR OPENING NON-RESIDENT ACCOUNTS, CHANGE IN RESIDENTIAL STATUS, LOANS AGAINST THESE DEPOSITS, GUARANTEES BY NON-RESIDENTS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What types of credits are permissible in a Non-Resident External (NRE) account?
Permissible credits include inward remittances from abroad, proceeds of foreign currency/travellers' cheques brought by the account holder, transfers from other NRE/FCNR(B) accounts, and interest earned on the NRE account itself.
Can proceeds from foreign currency earned abroad be credited to an NRE account?
Yes, foreign currency earnings abroad are freely creditable to NRE accounts.
What are the permissible debits from an NRE account?
Permissible debits include local disbursements, remittances abroad, transfer to other NRE/FCNR(B) accounts, and investments in India on a non-repatriable or repatriable basis as permitted under FEMA.
What is the currency denomination of an NRE savings account?
NRE accounts are denominated and maintained in Indian Rupees.
Can proceeds from the sale of assets in India be credited to an NRE account?
Generally, sale proceeds of assets acquired out of foreign exchange can be credited to NRE accounts; however, sale proceeds of assets acquired in India through local funds normally cannot be credited and must go to an NRO account.
Are NRE account balances freely repatriable outside India?
Yes, NRE account balances including interest are fully repatriable.
What credits are permissible in a Non-Resident Ordinary (NRO) account?
NRO accounts can receive credits from inward remittances, current income in India such as rent, dividends and pension, proceeds from sale of assets held in India, and transfers from other NRO accounts.
Can a non-resident open an FCNR(B) account in Indian Rupees?
No, FCNR(B) accounts are maintained only in permitted foreign currencies.
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