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Non-Resident (External) Rupee Account Scheme – NRE Account

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..... counts may be maintained in any form, e.g. savings, current, recurring or fixed deposit account etc. 3. Permitted Credits: a) Proceeds of remittances to India in any permitted currency. b) Proceeds of personal cheques drawn by the account holder on his foreign currency account and of travellers cheques, bank drafts payable in any permitted currency including instruments expressed in Indian rupees for which reimbursement will be received in foreign currency, deposited by the account holder in person during his temporary visit to India, provided the authorised dealer/ bank is satisfied that the account holder is still resident outside India, the travellers' cheques/ drafts are standing/ endorsed in the name of the account holde .....

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..... cellation of bookings / deals for purchase of residential/ commercial property, together with interest, if any (net of income tax payable thereon), provided the original payment was made out of NRE/ FCNR(B) account of the account holder or remittance from outside India through banking channels and the authorised dealer is satisfied about the genuineness of the transaction. j) Any other credit if covered under general or special permission granted by Reserve Bank. 4. Permitted Debits: a) Local disbursements. b) Remittances outside India. c) Transfer to NRE/ FCNR (B) accounts of the account holder or any other person eligible to maintain such account. d) Investment in shares/ securities/ commercial paper of an Indian compa .....

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..... or out of local rupee resources in the NRO account of the borrower. (2) To third parties: Authorised dealers and authorised banks may grant loans to resident individuals/ firms/ companies in India against the collateral of fixed deposits held in NRE account subject to the following conditions: i) The loan should be utilised for personal purposes or for carrying on business activities except for the purpose of relending or carrying on agricultural/ plantation activities or for investment in real estate business. ii) There should be no direct or indirect foreign exchange consideration for the non-resident depositor agreeing to pledge his deposits to enable the resident individual/ firm/ company to obtain suc .....

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..... ia for an uncertain period. Where the account holder is only on a short visit to India, the account may continue to be treated as NRE account even during his stay in India. 8. Repatriation of funds to non-resident nominee: Authorised dealers/ authorised banks may allow remittance of funds lying in the NRE account of the deceased account holder to his non-resident nominee. 9. Miscellaneous: (a) Joint accounts Joint accounts may be permitted to be opened in the following cases: i) In the names of two or more NRIs and/or PIOs ii) With resident relative(s) on former or survivor basis. However, the said resident relative shall be eligible to operate the account as a Power of Attorney holder in .....

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..... ther NRE account. d) Special Series of Cheques: For easy identification and quicker processing of cheques drawn on NRE accounts, authorised dealers/ banks shall issue cheque books containing a special series of cheques to their constituents holding NRE accounts. e) Temporary overdrawings: Authorised dealers/ authorised banks may at their discretion/ commercial judgement allow for a period of not more than two weeks, overdrawings in NRE savings bank accounts, up to a limit of ₹ 50,000 subject to the condition that such overdrawings together with the interest payable thereon are cleared/ repaid within the said period of two weeks, out of inward remittances through banking channels or by transfer of funds from other NRE/ FCNR(B) ac .....

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