JAIIB · PPB

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 is the full form of NRI as defined by FEMA 1999?

A

NRI stands for Non-Resident Indian, defined as an Indian citizen or person of Indian origin residing outside India for the purposes covered under FEMA 1999.

Q

What is the full form of FCNR(B) in the context of NRI deposits?

A

Foreign Currency Non-Resident (Bank) account

Q

Which authority governs the opening and maintenance of NRI accounts in India?

A

The Reserve Bank of India (RBI) governs NRI accounts under the Foreign Exchange Management Act (FEMA) 1999 and relevant regulations issued thereunder.

Q

Can NRIs invest in government securities and treasury bills in India?

A

Yes, through the RBI-approved investment route for NRIs

Q

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

A

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

Q

What is the maximum period for which an NRI can stay in India without losing NRI status?

A

Less than 182 days in a financial year

Q

In which currency are NRE accounts maintained?

A

NRE accounts are maintained in Indian Rupees (INR), though the funds are sourced from foreign remittances which are converted at the time of credit.

Q

Which form is required for repatriation of funds from NRO account exceeding USD one million?

A

Form 15CA and Form 15CB are required

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