Conversion and transfer of Indian currency is easy with a Non Resident External account. You can avail different saving schemes to save your earning overseas. If you are earning overseas and you want to save your hard-earned money in India, it is now possible with his account. Best part is that there is no tax on the interest that you have earned on these funds. Different direct channels for banking catered by financial institutes make transactions easy for account holders.
Easy transfer of funds
Central bank of the country has few regulations regarding this account. Different features of an NRE account make it special. Denomination of this account is in Indian currency. You can repatriate the amount even across international border. Non Resident Indians or Person of Indian Origin can open this account along with joint holders. Deposition to this account is easy in Indian currency; few foreign currencies are also permitted for this. If you want to transfer funds, you can do it through FCNR or NRE account in different financial institutes. Transfer of foreign exchange is allowed for depositing the amount.
Provide appropriate documentation
NRIs can avail loan overseas through an NRE account. For these accounts, central bank has standardized regulations regarding transaction procedures. You need to provide appropriate documentation if the transaction amount surpasses certain amount. Account holders need to submit a particular form if the transaction is in foreign currency in the form of demand drafts, checks or remittance. As per rules, no tax is levied on the interest that you receive from this account. There are permissible limits regarding the debit and cash flow of your account.Power of Attorney is applicable, but they can perform only few selected functions like remitting money and withdrawing funds.
Under the ambit of central bank
You have to seek permission prior to opening an account and credits are under the ambit of regulation of the central bank. Even for withdrawal, there is an upper limit and you need to pay the amount back with a limited period. An NRE accountis known as a rupee account and all major banks in the country have the provision of providing it. You need to maintain a low balance in these accounts and it depends on the service provider. It is important to know the regulations of this account, so that you can avail its advantages.
Different advantages of this account
You can invest in deposit and saving schemes of local and national banks with this account. With an NRE account, you can avail loans from both national and overseas bank within a permissible limit but this is quite high in comparison to amount granted by other banks. You can transfer capital from this account to other FCNR or NRE account easily.However, you need to ensure that both these accounts belong to the same person. No charges will be levied on transfer of funds overseas. Like other account, you can enjoy facilities like check books, bill payment and international debit and credit cards.
Easy transfer of funds
Central bank of the country has few regulations regarding this account. Different features of an NRE account make it special. Denomination of this account is in Indian currency. You can repatriate the amount even across international border. Non Resident Indians or Person of Indian Origin can open this account along with joint holders. Deposition to this account is easy in Indian currency; few foreign currencies are also permitted for this. If you want to transfer funds, you can do it through FCNR or NRE account in different financial institutes. Transfer of foreign exchange is allowed for depositing the amount.
Provide appropriate documentation
NRIs can avail loan overseas through an NRE account. For these accounts, central bank has standardized regulations regarding transaction procedures. You need to provide appropriate documentation if the transaction amount surpasses certain amount. Account holders need to submit a particular form if the transaction is in foreign currency in the form of demand drafts, checks or remittance. As per rules, no tax is levied on the interest that you receive from this account. There are permissible limits regarding the debit and cash flow of your account.Power of Attorney is applicable, but they can perform only few selected functions like remitting money and withdrawing funds.
Under the ambit of central bank
You have to seek permission prior to opening an account and credits are under the ambit of regulation of the central bank. Even for withdrawal, there is an upper limit and you need to pay the amount back with a limited period. An NRE accountis known as a rupee account and all major banks in the country have the provision of providing it. You need to maintain a low balance in these accounts and it depends on the service provider. It is important to know the regulations of this account, so that you can avail its advantages.
Different advantages of this account
You can invest in deposit and saving schemes of local and national banks with this account. With an NRE account, you can avail loans from both national and overseas bank within a permissible limit but this is quite high in comparison to amount granted by other banks. You can transfer capital from this account to other FCNR or NRE account easily.However, you need to ensure that both these accounts belong to the same person. No charges will be levied on transfer of funds overseas. Like other account, you can enjoy facilities like check books, bill payment and international debit and credit cards.