1. Who is a Non-Resident Indian (NRI)?
2. Who is a person of Indian origin (PIO)?
3. What is an Overseas Corporate Body (OCB)?
4. Are OCBs required to produce any certificate regarding ownership/beneficial interest in them by NRIs?
5. What are the various investment opportunities in India available to NRIs?
6. What types of accounts can I open & in which currency are they maintained?
7. Can I open these accounts in any convertible currency?
8. What is the minimum amount with which I can open an account?
9. How do I open an account?
10. What documents are required for opening of an NRI account with J&K Bank?
11. Can I transfer funds from my existing NRE/FCNR Accounts to open NRO Accounts?
12. If I'm visiting India, can I use Travellers Cheques or Currency to open an account or credit my existing NRE Account?
13. Under which accounts can I avail of a Chequebook / ATM card facility?
14. What are the admissible debits & credits to NRO Accounts?
15. What are the permissible debits/credits to the NRE/FCNR Accounts?
16. Can I give a Power of Attorney to a Resident Indian to operate my Non-Resident Accounts?
17. Can Power of Attorney Holders credit proceeds of foreign currency notes/bank notes & travelers cheques to the NRE Accounts?
18. Can funds in NRI account be repatriated?
19. Can joint accounts be opened?
20. Are any tax concessions allowed to NRIs on balances /deposits held in NRI accounts?
21. Can I avail of loans against my non-resident deposit accounts?
22. Can I transfer funds between NRE Accounts?
23. Are there any facilities available for returning Indians?
24. What is the Resident Foreign Currency Account Scheme?
25. What types of accounts can I open under RFC scheme?
26. In which currency can I maintain RFC accounts?
27. What is the minimum amount required for opening RFC account?
28. Is nomination facility available on RFC Accounts?
29. What are permissible Credits/Debits to RFC accounts?
30. Are there any tax concessions on RFC accounts?
31. Can funds held in the RFC Accounts be remitted abroad?
32. Can funds in the RFC Accounts be utilized for local payments?
33. Is permission of Reserve Bank required for making investments in new issues of shares/debentures of Indian companies on Non-Repatriable basis?
34. Can NRIs make investment in non-convertible debentures of Indian companies?
35. Can NRIs purchase shares of Indian companies through a private arrangement?
36. Can an NRI invest in immovable property?
37. Can an NRI invest in Mutual Funds?
38. Do NRIs need RBI permission to invest in Mutual Funds?

1. Who is a Non-Resident Indian (NRI)?

  NRI refers to a person who has gone out of India or who stays outside India for any of the
  following:

• Taking up employment
• Business or vacation
• Any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period
• Indian citizen working abroad on assignments with foreign Governments/Government agencies or international/regional agencies like the UNO, IMF, World Bank etc.
• Official of Central and State governments and Public Sector Undertakings deputed abroad on temporary assignments or posted to a Branch/Office (including diplomatic missions) abroad
• Indian settled abroad permanently
• Indian gone abroad on immigration
• Crew member of Indian nationality or Indian origin employed by foreign airlines/shipping companies, if they are based at foreign ports and reside abroad

Non-Resident Indians become Indian residents only when they come back to India for employment or for carrying-on any business in India or vocation or for any other purpose indicating an indefinite period of stay in India.
They are not regarded as Resident Indians during their short visits to India on holiday, leave etc

• Maintenance of bank accounts in India
• Investment in securities/shares of, and deposits with, Indian firms/companies
• Investment in immovable property in India
• Investment in Mutual Funds in India

• Non-Resident External (NRE)

This account is maintained in Indian Rupees. Here you can open Saving, Current, Fixed AND recurring Deposit accounts.

• Non-Resident Ordinary (NRO)

This account is also maintained in Indian rupees. Here you can open Saving, Current and Fixed Deposit accounts.

• Foreign Currency Non-Resident (FCNR)

Under this Scheme, you can open Fixed Deposit accounts in USD,GBP,EURO,JPY,AUD &CAD.

• NRE - Savings Account
  Rs.1,000/-
• NRE - Current Account
  Rs.5,000/-
• NRE - Term Deposit Account
  Rs 5000/-
• NRE Recurring Deposit Account
  Monthly installments of Rs.5, 000/- to Rs.100, 000/- in multiples of Rs.1, 000/-
• NRO - Savings Account
  Rs.1,000/-
• NRO - Current Account
  Rs.5,000/-
•  NRO - Term Deposit Account
  Rs 5,000/-
• FCNR - Term Deposit Account
  USD 1,000/-or equivalent.

If you are an NRI & want to open the account by visiting any of our designated branches, you require the following documents:

• Photocopy of the relevant pages of the current passport where name, address, date of birth, date & place of issue, expiry date, photograph, signature & stamp regarding your stay outside India appear.
• Photocopy of Valid work permit/ employment visa (in case of expired visas, duly acknowledged petitions made to the Visa Authorities for renewal of visas will be accepted as a valid document.)
• At least one of the following address proofs (for First Applicant only if the applicants are closely related as can be inferred from the account opening application form)
• Utility Bill
• Driving License
• Residence Permit (Govt. issued Identity card)
• Credit Card Bills
•         Rent Receipt
• Overseas / Indian Bank Statement

*(All Originals should be with you for verification.)
If you are a PIO & want to open the account by visiting any of our designated branches, you require the following documents:

• Photocopy of the relevant pages of the current passport
• Copy of PIO card
               or

Copy of past Indian passport of self / parent / grand-parent along with a self-declaration about Indian origin
                                   or
Self-declaration for PIO as given on the account opening Form

• At least one of the following address proofs (for First Applicant only if the applicants are closely related as can be inferred from the account opening application form )
• Utility Bill
• Driving License
• Residence Permit (Govt. issued Identity card)
• Credit Card Bills
• Rent Receipt
• Overseas / Indian Bank Statement

*(All Originals should be with you for verification.)
If you are an NRI & send form to us from abroad, the documents required are:

• Photocopy of the relevant pages of your current passport where the name, address, date of    birth, date & place of issue, expiry date, photograph, signature & stamp regarding your stay outside India appear.

• Photocopy of Valid work permit / employment visa. (In case of expired visas, duly acknowledged petitions made to the Visa Authorities for renewal of Visas will be accepted as a valid document).
• All Photocopies must be attested by any one of the following - Banker / Indian Embassy / Notary (or equivalent of notary as per applicable law) /Self-Attestation*.
• All Photocopies have to be signed by the applicant in full as “True Copies”.
• In case of self attestation, any one of the following documents may be attached:

• Copy of the latest statement of bank account or relevant sheets of passbook of your account in India / Abroad (for the last 6 months)
• Copy of any letter received from your existing banker in India / Abroad (dated within last 3 months)
• A Cheque drawn on your existing banker in India or on your bank account abroad
• An original Cheque issued by you and paid by your banker outside India
• A copy of at least one of the following Address proofs outside India (for First Applicant only if the applicants are closely related as can be inferred from the account opening application form)·
• Utility Bill
• Driving License
• Residence Permit (Government issued Identity Card)
• Credit Card Bills
• Rent Receipt
• Overseas / Indian Bank Statement

If you  are a Person of Indian Origin (PIO) & send form from abroad 

• Copy of the relevant pages of the current passport.
• Copy of PIO card
                    or

Copy of past Indian passport of self / parent / grand-parent along with a self declaration about Indian Origin
                  or
Self declaration for PIO as given on the account opening Form  

• All Photocopies must be attested by any one of the following - Banker / Indian Embassy / Notary (or equivalent of notary as per applicable law) /Self-Attestation.
• All Photocopies have to be signed by the applicant in full as “True Copies”.
• In case of self attestation, any one of the following documents may be attached along with the self-attestation letter:

• Copy of the latest statement of bank account or relevant sheets of passbook of the account in India / Abroad (for the last 6 months)
• Copy of any letter received from the existing banker in India / Abroad (dated within last 3 months)
• A Cheque drawn on an existing banker in India
• An original Cheque issued by NRI and paid by the banker outside India
• A copy of at least one of the following Address proofs outside India (only for the first Applicant if the applicants are closely related as can be inferred from the account opening application form): 
• Utility Bill
• Driving License
• Residence Permit (Government issued Identity Card)
• Credit Card Bills
• Rent Receipt
• Overseas / Indian Bank Statement.

Permissible Credits

• Proceeds of remittances received from abroad in freely convertible currency through normal banking channels may be credited freely.

• Legitimate dues in rupees of the account holder in India can be credited to the account. Legitimate dues in India include current income like rent, dividend, pension, interest, etc as also proceeds of assets including immovable property acquired out of rupee/ foreign currency funds or by way of legacy/ inheritance.
• Travelers Cheques can also be credited to the account. NRIs bringing Foreign Currency Notes & Travelers Cheques will have to submit a Currency Declaration Form (CDF) to the customs authorities on arrival in India if the foreign currency notes exceed USD 5,000/- or combined value of Travelers Cheques and notes exceed USD 10,000/-. He may produce the CDF for endorsement by the bank when he submits the money for opening/credit to an account.
• Any other credit if covered under general or special permission granted by Reserve Bank.

Permissible Debits.

• 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 of an amount of balances in NRO account of NRI/PIO up to USD One million, per calendar year, for all bonafide purposes to the satisfaction of the Bank.

• Debits are allowed freely, however debits for investments in Shares/securities/commercial paper of Indian companies or for purchase or immovable property in India should be covered by general/specific permission of RBI. For further details on investment in Shares
• Credits to an account, through funds from a local source would be permissible only if the funds are repatriable
• Also, proceeds of remittances received from abroad in freely convertible currency through normal banking channels may be credited freely
• Traveler’s Cheques or foreign currency tendered by the account holder during his temporary visit to India
• Interest / Maturity Proceeds of Government securities including National Savings Certificates, dividends of Unit Trust of India, provided these securities were purchased out of funds from NRE / FCNR Accounts

16. Can I give a Power of Attorney to a Resident Indian to operate my Non-Resident Accounts?

• A Power of Attorney is given only for operating the account & not for opening the account. Further, the operations are restricted only for making legitimate local payments.
• The Power of Attorney can make payments for the purpose of making investments on behalf of the NRI.
• Power of Attorney holder is not ordinarily allowed to repatriate the funds abroad, make payments or gifts on behalf of the non-resident account holder, or transfer funds from the account to another NRE account. However, resident power of attorney holder may be allowed to remit, through normal banking channels, funds out of the balances in NRE account to the non-resident account holder provided specific powers for the purpose have been given. The remittances under power of attorney are permitted only to the non-resident account holder.
• Power of Attorney Holders cannot credit proceeds of foreign currency notes / bank notes & travelers cheques to the NRE Accounts.

17. Can Power of Attorney Holders credit proceeds of foreign currency notes/bank notes & travelers cheques to the NRE Accounts?
No

18. Can funds in NRI account be repatriated?
Principal as well as interest in NRE &FCNR account can be repatriated freely. However, Principal amount in NRO account is subject to AP DIR Cir number 67 dated 13th Jan 2003,which states:
“Authorized dealers are now permitted to remit upto USD 1 million out of the legitimate balances held in NRO accounts, sale proceeds of assets, on production of an undertaking and C A certificate by the person making the remittance (in the formats prescribed by RBI).”
Interest earned on investments made on non-repatriation basis, after payment of taxes as applicable can be repatriated.

19. Can joint accounts be opened?
Joint accounts with non-resident Indians or with resident Indians is allowed in case of NRO accounts. However, joint accounts with resident Indians are not allowed under NRE &FCNR accounts. Joint accounts are, however, allowed with non-resident Indians under these accounts.

20. Are any tax concessions allowed to NRIs on balances /deposits held in NRI accounts?
NRE /FCNR accounts are tax-exempted. However, similar concession is not available on NRO accounts.

21. Can I avail of loans against my non-resident deposit accounts?
Yes. You can avail of loans against your NRO/NRE/FCNR Deposits. The loan/overdraft can be used for personal purposes or for carrying on Business activities other than 1) Relending 2) Agricultural/Plantation activities 3) Real Estate Business

22. Can I transfer funds between NRE Accounts?
Yes. Transfer of funds from NRE Accounts is allowed for bonafide personal purposes such as personal expenses, education of children, and gifts.

23. Are there any facilities available for returning Indians?
Returning Indians can avail of the following facilities:

• Maintenance of assets abroad: An NRI, who has stayed abroad continuously for at least one year, is permitted to maintain his investments in bank deposits, shares, securities, business and immovable properties abroad.
• Eligibility to open a Resident Foreign Currency Account (RFC): NRIs returning permanently, after a continuous stay of minimum one year abroad, can open Resident Foreign Currency Accounts with banks in India.

24. What is the Resident Foreign Currency Account Scheme?
This is a scheme permitting persons of Indian nationality or origin who have returned to India for permanent settlement (Returning Indians) after being resident outside India for a continuous period of not less than one year, to open foreign currency accounts against the proceeds held in NRE/FCNR accounts of Funds remitted from abroad.

25. What types of accounts can I open under RFC scheme?
You can open Current, Savings and Fixed Deposit Accounts under the RFC scheme. However you will not be given a chequebook facility, on the RFC Savings/Current Account

26. In which currency can I maintain RFC accounts?
Remittances can be in any convertible currency. However, RFC accounts can be maintained in any one of the following four currencies USD, GBP, JPY &Euro. An account holder can convert his/her deposit into Indian Rupees as and when he/she requires.

27. What is the minimum amount required for opening RFC accounts?
The minimum amount required for opening RFC accounts are:
RFC Savings:
$5000 or equivalent.
RFC Current:
$5000 or equivalent.
RFC Term Deposit Account:
$5000 or equivalent.

28. Is nomination facility available on RFC accounts?
Nominations can be made in favour of residents as well as non- residents. On the death of the depositor, repatriation of the balances in the account is permissible to a nominee being a person resident outside India, to the extent of his share or entitlement from the account of the deceased account holder. If the nominee is residing in India on the date of death of the account holder, then the equivalent amount will be paid to him in Indian Rupees.  In the event of the nominee being a person resident in India, who is desirous of remitting funds outside India, out of his share for meeting the liabilities abroad of the deceased, an application would have to be made to the Reserve Bank of India for such remittance.

29. What are the permissible Credits/Debits to RFC Accounts?

• The entire amount of foreign exchange assets acquired or held while a person was resident outside India. This could be in the form of deposits in banks outside India, investments in foreign currency, shares and securities or immovable properties situated outside India or investments in business etc. outside India. It includes foreign exchange earnings through employment, business or vocation outside India commenced by the NRI while he was resident outside India.

•  Also, all balances standing to the credit of their NRE//FCNR accounts at the time of return can be credited to RFC Accounts.
• NRIs bringing Foreign Currency Notes & Traveler’s Cheques will have to submit a Currency Declaration Form (CDF) to the customs authorities on arrival in India if the foreign currency notes exceed USD 5,000/- or Traveler’s Cheques and notes exceed USD 10,000/-. Currency Declaration Form must also be produced for endorsement by the bank when a person submits money for opening/credit to an account.

• Income received from overseas assets in the form of dividends etc, or sale of proceeds of such assets & pension from abroad can also be credited to the RFC Account.
  

• RFC funds can be freely drawn in Indian rupees for use locally.  

30. Are there any tax concessions on RFC accounts? 
TDS (Tax Deducted at Source) exemption can be claimed on Interest earned if the deposit holder qualifies for RNOR (Resident Nor Ordinary Resident) status. A returning Indian would have RNOR status if he has been a non-resident for at least 9 of the previous 10 years or if he had been in India for not more than 729 days in the previous seven years.

31. Can funds held in the RFC Accounts be remitted abroad?
Funds in RFC Accounts can be remitted abroad for any bonafide purpose of the account holder.

32. Can funds in the RFC Accounts be utilized for local payments?
Yes. The amount will be converted and credited to the customer’s resident a/c.

33. Is permission of Reserve Bank required for making investments in new issues of shares/debentures of Indian companies on Non-Repatriable basis?
No

34. Can NRIs make investment in non-convertible debentures of Indian companies?
Yes

35. Can NRIs purchase shares of Indian companies through a private arrangement?
Yes. However, the company offering shares for subscription must seek RBI permission to allot shares through a private arrangement to the NRI.

36. Can an NRI invest in immovable property?
Non-resident Indian citizens can freely purchase and sell residential and commercial properties in India. Foreign citizens need to obtain RBI's permission for the same. However, a foreign citizen of Indian origin need not obtain RBI's permission for purchasing and selling residential and commercial properties (other than agricultural/plantation land and farm houses) for bonafide purposes, provided these purchases are met out of foreign exchange funds

37. Can an NRI invest in Mutual Funds?
Yes, an NRI can invest in Mutual Funds. However in the case of Money Market Mutual Funds, the investments will be on a non-repatriable basis.