JAIIB · PPB

A Operational aspects of NRI business

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

What does NRI stand for in the context of Indian banking?

A

NRI stands for Non-Resident Indian, referring to an Indian citizen or person of Indian origin residing outside India for employment, business, or other purposes.

Q

What is the full form of FCNR and under which bank category does it fall?

A

Foreign Currency Non-Resident account held with Indian banks

Q

Which authority regulates NRI accounts in India?

A

The Reserve Bank of India (RBI) regulates NRI accounts under the Foreign Exchange Management Act (FEMA), 1999.

Q

Which Indian authority grants permission for NRI investments under the Portfolio Investment Scheme?

A

Reserve Bank of India through designated authorised dealer banks

Q

What are the three main types of deposit accounts available to NRIs in India?

A

NRIs can open NRE (Non-Resident External), NRO (Non-Resident Ordinary), and FCNR(B) (Foreign Currency Non-Resident Bank) accounts in India.

Q

What is the maximum period for which an FCNR(B) deposit can be held?

A

Maximum five years from the date of deposit

Q

In which currency are NRE accounts maintained?

A

NRE accounts are maintained in Indian Rupees (INR), though funds are remitted from abroad in foreign currency which is then converted to rupees.

Q

Under FEMA, which transactions by NRIs are classified as capital account transactions?

A

Investments in shares, property, and loans from India

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