Frequently Asked Questions

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Can I have both Non Resident and Resident Savings Account?

No, a person can either have a Resident saving account or Non-Resident accounts (NRE /NRO)
 

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What are the permissible credits in a NRE account?

  • Proceeds of remittances to India in any permitted currency

  • Proceeds of personal cheques drawn by the account holder on his foreign currency account and of traveller’s cheques, bank drafts payable in any permitted currency including instruments expressed in Indian rupees for which reimbursement will be received in foreign currency. These instruments deposited by the account holder in person during his temporary visit to India, provided the authorized dealer/bank is satisfied that the account holder is still resident outside India
  • Proceeds of foreign currency/ bank notes tendered by account holder during his temporary visit to India, provided
    • The amount was declared on a Currency Declaration Form (CDF), where applicable, and
    • The notes are tendered to the authorised dealer in person by the account holder himself and the authorised dealer is satisfied that account holder is a person resident outside India
  • Transfers from other NRE / FCNR accounts
  • Interest on Government securities and dividend on units of mutual funds, provided the securities/ units were purchased by debit to the account holder's NRE/ FCNR account or out of inward remittance through normal banking channels
  • Maturity proceeds of Government securities including National Plans/ Savings Certificates as well as proceeds of Government securities and units of mutual funds sold on a recognized stock exchange in India; sale proceeds of units received from mutual funds provided the securities/units were originally purchased by debit to the account holder’s NRE/FCNR account of the account holder or remittance from outside India through normal banking channels

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What are the permissible debits from NRE account?

  • Local disbursements
  • Remittances outside India

  • Transfer to NRE/ FCNR (B) accounts of the account holder or any other person eligible to maintain such account
  • Investment in shares/ securities/ commercial paper of an Indian company or for purchase of immovable property in India provided such investment/ purchase is covered by the regulations made, or the general/ special permission granted by the Reserve Bank
  • Any other transaction if covered under general or special permission granted by the Reserve Bank

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What are the permissible credits in a NRO account?

  • Proceeds of remittances from outside India through normal banking channels received in any permitted currency

  • Any foreign currency, which is freely convertible, tendered by the account holder during his temporary visit to India. Foreign currency exceeding USD 5000 or its equivalent in the form of cash should be supported by currency declaration form. Rupee funds should be supported by encashment certificate, if they represent funds brought from outside India
  • Legitimate dues in India of the account holder. This includes current income like rent, dividend, pension, interest, etc
  • Sale proceeds of assets including immovable property acquired out of rupee / foreign currency funds or by way of legacy /inheritance
  • Resident individual may make a rupee gift to a NRI/PIO who is a close relative of the resident individual [close relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque /electronic transfer. The amount shall be credited to the Non-Resident (Ordinary) Rupee Account (NRO) a/c of the NRI / PIO and credit of such gift amount may be treated as an eligible credit to NRO a/c. The gift amount would be within the overall limit prescribed under the Liberalised Remittance Scheme (LRS) for a resident individual
  • Resident individual may lend to a Non-resident Indian (NRI)/ Person of Indian Origin (PIO) close relative [means relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque /electronic transfer, subject to conditions within the overall limit prescribed under the Liberalised Remittance Scheme available for a resident individual. The loan amount should be credited to the NRO a/c of the NRI /PIO. Credit of such loan amount may be treated as an eligible credit to NRO a/c

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What are the permissible debits from NRO account?

  • All local payments in rupees including payments for investments in India subject to compliance with the relevant regulations made by the Reserve Bank

  • Remittance outside India of current income like rent, dividend, pension, interest, etc. in India of the account holder
  • Remittance up to USD one million, per financial year (April- March), by NRI, subject to payment of tax, as applicable
  • Transfer to NRE account of NRI within the overall ceiling of USD one million per financial year subject to payment of tax, as applicable

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Can money be transferred from NRO to NRE savings account?

Yes, within the overall ceiling of USD one million per financial year subject to payment of tax, as applicable.
 

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How to choose between NRO and NRE savings account?

NRO Account can be opened for parking legitimate dues in India of the account holder

(current income like rent, dividend, pension, interest, etc). NRE Account can be opened for parking foreign income earned outside India.
 

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What is the repatriation limit in NRE and NRO savings account?

The principal in the NRE account and the interest earned is fully repatriable.

NRI can repatriate within the overall ceiling of USD one million per financial year from NRO account, subject to payment of tax as applicable.
 

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Is there any tax benefit of NRI savings account?

Interest earned in NRE Savings account is tax free.

However, interest earned on NRO Savings account is taxable @30% + applicable cess.
Disclaimer: As per Indian Income Tax Act
 

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Can I have a joint NRI savings account?

NRE/NRO account can be opened jointly with a Non Resident Individual.

Resident Individual (close relative) can be a joint holder in the non-resident account with mode of operation as ‘Former or Survivor’.
 

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Can I deposit Indian rupees in NRO account?

INR cash can be deposited in NRO Account. This includes, foreign currency which is freely

convertible tendered by the account holder during temporary visit to India, legitimate dues in India of the account holder-rent, dividend, pension, interest, etc., sale proceeds of assets including immovable property.

Disclaimer: Cash deposit <=INR 50,000 has to be supported with a self-declaration for source of funds and Cash deposit >INR 50,000 has to be supported with a self-declaration as well as proof of source of funds.

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What are Inactive and Dormant accounts and how can you activate the account?

Inactive Account: If you do not do any transactions through your savings account for more than 12 months, the account will be classified as "Inactive".

Inactive account can be activated by initiating a transaction through the account.

Dormant Account: If you do not do any transactions through your savings account for more than 24 months, the account will be classified as "Dormant".

Dormant account can be activated by following the below:

• You may write a mail to nriservices@kotak.com specifying the reason for non-operation of the account from your preferred Email Id registered with the Bank

• Self-attested copy of latest ID proof, signature proof and address proof should be attached in the email
 

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