Indicate the two facilities provided by banks regarding the opening of accounts by NRIs to deposit their earnings.
Facilities provided by banks regarding the opening of accounts by NRIs to deposit their earnings:
- NRE ACCOUNT (Non – Resident External Account)
An NRE account can be opened by any person who is residing outside India. NRIs (Non – Resident Indians) having NRE account in India are permitted to hold and maintain foreign currency earnings in Indian rupees. Moreover, the interest earned is not taxable in India.
- NRO ACCOUNT (Non – Resident Ordinary Rupee Account)
An NRO account is a savings or current account held in India that helps NRIs manage income earned in India such as rent, dividends, or pension from abroad. The account holder can deposit and manage accumulated rupee funds conveniently through an NRO account.
- FCNR Account (Foreign Currency Non-Resident Account)
FCNR Deposit is a Fixed Deposit Foreign Currency account and not a savings account. Deposits in this account can be made in any of the major currencies like US Dollar, UK Pound, Canadian Dollar, Deutsche Mark, Japanese Yen and Euro.