A non-resident Indian (NRI) is an Indian citizen who has migrated to another country. Other terms with the same meaning are overseas Indian and expatriate Indian. For tax and other official purpose the government of India considers any Indian national away from India for more than 183 days in a year an NRI. In common usage, this often includes Indian born individuals (and also people of other nations with Indian blood) who have taken the citizenship of other countries.

A Person of Indian Origin (PIO) is literally, simply a person of Indian origin who is not a citizen of India. For the purposes of issuing a PIO Card, the Indian government considers anyone of Indian origins up to four generations removed, to be a PIO.

Persons of Indian nationality or origin resident abroad may open, with authorized banks in India, Non-resident (External) Accounts (NRE Accounts), designated in rupees. These accounts can be maintained in the form of savings, current or term deposit accounts. Opening of NRE Accounts jointly in the names of two or more non residents is permitted provided all the account holders are persons of Indian nationality or origin. For opening these accounts, the funds are required to be remitted to India through;

• proceeds of foreign exchange remittances from abroad through banking channels in an approved manner.
• proceeds of foreign currency notes and traveler cheques brought into India by the non-resident while on a temporary visit to India.
• transfer from an existing Non-Resident (External) FCNR account of the same person.

The account holder has to furnish an undertaking on the account opening form that he would promptly send intimation to his bank if and when he returns to India for permanent residence.

Proceeds of remittance arranged by the account holder through banking channels from any country can be credited to this account. Similarly, income from the account holder's investment from the funds in the account can be credited to it, except in cases where the investments are permitted on non-repatriable basis. Remittances from the account to the country of residence of the account holder or any other country are freely allowed.

Authorized dealers may allow operations on NRE Accounts by persons resident in India in terms of Powers of Attorney (Annexure 14.5) or other appropriate authority granted in their favor of non-resident account holders, provided the powers are restricted to withdrawals for local payments.

An FCNR account is a Foreign Currency Non-Resident (Bank) Account. Non-Resident Indians can open accounts under this scheme. The account should be opened by the non-resident account holder himself and not by the holder of power of attorney in India.

These deposits can be maintained in 5 designated currencies i.e. U.S. Dollar (USD), Pound Sterling (GBP) and Euro, Australian Dollar (AUD) & Canadian Dollar (CAD).

These accounts can only be maintained in the form of terms deposits for maturities of minimum 1 year to maximum 5 years.

These deposits can be opened with funds remitted from abroad in convertible foreign currency through normal banking channel, which are of repatriable nature in terms of general or special permission granted by Reserve Bank of India.

These accounts can be maintained with our branches, which are authorized for handling foreign exchange business. (List of branches authorized for handling foreign exchange business linked at the end).

Funds for opening accounts under PNB Global Foreign Currency Deposit Scheme or for credit to such accounts should be received from :

• Remittance from outside India or Traveler Cheques/Currency Notes tendered on visit to India.
• International Postal Orders cannot be accepted for opening or credit to FCNR accounts.
• Transfer of funds from existing NRE/FCNR accounts.

If remittance is received in any currency other than USD, GBP, Euro, AUD & CAD, it will be converted into one of the designated currencies of remitter's choice at the risk & cost of the depositor.

Rupee balances in the existing NRE accounts can also be converted into one of the designated currencies at the prevailing TT selling rate of that currency for opening of account or for credit to such accounts.

Advantages of FCNR (B) Deposits

• Principal along with interest freely repatriable in the currency of your choice.
• No Exchange Risk as the deposit is maintained in foreign currency.
• Loans/overdrafts in rupees can be availed by NRI depositors or 3^rd parties against the security of these deposits. However, loans in foreign currency against FCNR (B) deposits in India can be availed outside India through our correspondent Banks.
• No Wealth Tax & Income Tax is applicable on these deposits.
• Gifts made to close resident relatives are free from Gift Tax.
• Facility for automatic renewal of deposits on maturity and safe custody of Deposit Receipt is also available.

Yes. However, the RBI has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain separate permission of The Reserve Bank.

The Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC and authorized dealers (see "helpful links" below) to grant housing loans to non-resident Indian nationals for the purchase of residential real estate, subject to certain conditions. Repayment of the loan should be made within a period not exceeding 15 years, out of inward remittance through banking channels or out of funds held in the investors' NRE/FCNR/NRO accounts (see "abbreviations").

The reserve Bank has given permission for letting out Real Estate in India. The rental income or proceeds of any investments are eligible for repatriation (bringing money that has been invested abroad back to its country of origin)

The sale of the property has to be three years from the date of the final purchase deed or from the payment date of the final installment, whichever is later.

In order to bring back the money that has been invested abroad to its country of origin, applications for necessary permission for remittance of sale proceeds need to be made in for of an IPI 8 to the Central Office of the Reserve Bank in Mumbai within 90 days of the sale of the property.

The Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC and authorized dealers (see "helpful links" below) to grant housing loans to non-resident Indian nationals for the purchase of residential real estate, subject to certain conditions. Repayment of the loan should be made within a period not exceeding 15 years, out of inward remittance through banking channels or out of funds held in the investors' NRE/FCNR/NRO accounts (see "abbreviations").

The purchase consideration should be met either out of inward remittance in foreign exchange through normal banking channels, or out of funds from NRE/FCNR accounts (see "abbreviations" for explanation) maintained with banks in India.

Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

A foreign citizen is deemed to be of Indian Origin if :

• he held an Indian Passport at any time or
• he or his father or paternal grand father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.

This does not apply to citizens of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal

Foreign citizens of Indian origin are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the documentary evidence for the transaction and bank certificate for the money paid.

Immediately upon return of the account holder to India and on his becoming resident in India, NR (E) account will be re-designated as resident rupees account or converted to RFC account as per the option of the account holder.

However, if the account holder is only on a short visit to India, the account will continue to be treated as NR (E) account even during his stay in India.

In respect of funds held in fixed deposits in NR(E) Accounts, interest will be payable at the rate originally fixed, provided the deposit is held for the full even after conversions into resident account.