NRE Rupee Deposit

Fund your account with any convertible currency received from abroad

With automatic renewal of principal and interest on maturity

Deposits can be held for a period of 1 year to 10 years

Principal amount and interest earned are fully repatriable

Interest earned not taxable in India

Partial withdrawal of the deposits allowed with NRE Savings Account with Premature Encashment

• For NRE Term Deposits of a contracted amount less than Rs 5 Crores opened/renewed, interest rate shall be prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or the contracted rate, whichever is lower.
• For NRE Term Deposits of a contracted amount of Rs 5 Crores and above, interest rate shall be 1% below the card rate prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or 1% below the contracted rate, whichever is lower.
• In case the NRE term deposit is closed prematurely, before completion of the minimum period of 1year, no interest shall be paid for the said term deposit.

# The depositor who returns to India for good will be allowed to continue the deposit till maturity of the deposit at the contracted rate of interest, if desired. However, except the provisions relating to rate of interest, such deposit would be treated as resident deposits from the date of return of the account holder to India and taxed accordingly for all other purposes.

Upto 85% of the deposit

With the nomination facility

• The bank may, at its discretion, renew an overdue NRE or FCNR deposit or a portion thereof provided the overdue period from the date of maturity till the date of renewal (both days inclusive), does not exceed 14 days and at the time of renewal banks are required to apply the rate prevailing on the date of renewal or on the date of maturity, whichever is lower.
• In case the overdue period exceeds 14 days, banks are free to fix their own rate for the overdue period if the entire amount or a part thereof is kept as a fresh deposit

To Account Holder

• For personal purposes or for carrying on business activities except for the purposes of relending, carrying on agricultural or plantation activity or of investment in real estate loan against deposit can be granted.
• The loan should be repaid from fresh inward remittances or from NRE or FCNR deposit. The loan can also be repaid out of local rupee resources in the NRO account and in such cases commercial rate of interest should be charged.

Loan outside India

• Banks may allow their branches or correspondents outside India to grant loan against deposits in favour of non-resident depositor.