123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Features Of The Nre Account And How It Can Benefit You

By Author: Neha Sharma
Total Articles: 1170

"Non-residential Indians (NRIs) can maintain a rupee account in India. NRIs have two options available to open and operate a bank account in India – NRE or Non-resident Rupee account and NRO or Non-Resident Ordinary Rupee account.

A NRE account allows a person to transfer or convert Indian currency and also allows him/her to park their money in various savings accounts. The primary reason why a person would want to open this account is if he/she wants to convert his/her overseas earnings into Indian rupees. This account allows a person to maintain a savings account in Indian currency, he/she can hold a joint account with another NRI or if the person wants his savings in rupees to be fully repatriable.

The features of a NRE account are:

• The amount that is saved in this type of an account can be repatriated overseas as well.

• A NRI can open this account and he/she can hold it jointly with another NRI or PIO.
The deposits in this account can be done in the following ways:
• A NRI can deposit money in this account personally when he/she visits India and the deposit can be made in Indian currency and a few other foreign currencies.
• Deposits can also be made in a NRE account through the foreign exchange transfer while in a foreign country.
• A person can also deposit in such an account by transferring funds through NRE account or FCNR account that are held in financial institutions apart from banks.
You can open NRE account online to enjoy the features of NRE account such as:
• A person does not have to pay taxes on the interest that he/she earns from the deposits in this type of account.
• The Reserve Bank of India has set some guidelines about how to document the transaction procedures and how to submit those to the governing body. NRIs have to fill in the Form A4 when he/she is depositing money in foreign currency through remittance or via demand drafts or cheques. A person who does transactions above Rs 1, 00,000 needs to submit proper documentation.
• The credit and debit flows into and out of this account are regulated by FEMA by imposition of a set of permissible transfer types.
• A person having Power of Attorney can only perform limited tasks like withdrawing money and remitting money across the border so that it can reach the account holder.
The advantages of NRE account are as follows:
• This account allows a non-residential Indian to invest in different deposit schemes and saving schemes of banks in India.
• You can also open NRE account online to avail a loan from foreign as well as Indian banks. Moreover, the amount of loan that a person can get is much higher in comparison to loans provided to other types of accounts.
• You can transfer funds from one country to another without incurring any cost.
• You can also transfer funds from this account to other FCNR/NRE accounts of the same person or even of a different person.

A person can avail facilities like cheque book, international credit card and also pay bills if he/she has a NRE account. "

Author Bio:- Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about the EMI calculator and why is it important to calculate the EMI. Through her work, she provides information on features of the NRE account and how it can benefit you.

Total Views: 39Word Count: 582See All articles From Author

Investing / Finance Articles

1. Asset Reconstruction Company For India
Author: Arnav Desai

2. Summary Of Value Investing: Famous Value Investors?
Author: BhartiJoshi

3. Comparing Quickbooks Pro, Premier & Enterprise At A Glance
Author: Jessica Haizel

4. What Is A Share And What Is A Share Market?
Author: BhartiJoshi

5. Loans Without Guarantor & Credit Check To Fuel Your Financial Strength
Author: Adela Jones

6. What Does Systematic Withdrawal Plan Mean In Mutual Funds?
Author: Bhagath Varma

7. Beat The Summer Heat With 0 Percent Interest Loan On Air Conditioners!
Author: Meenal Wahi

8. Industry Research Reports
Author: Chetan Rathod

9. How To Start Investing In Sip Online?
Author: Bhagath Varma

10. What Is A Mutual Fund And How Do I Invest In Them?
Author: Bhagath Varma

11. Advantages Of Export Documentation
Author: Laural Smith

12. Option Trading - A Free Style Of Trading In India
Author: Mahendra Rajput

13. How Stock Market Advisory Firms Are Helpful In Trading
Author: rajveervyas

14. Fundamental Analysis Of A Company
Author: Aniket Vichare

15. Important Factors To Know About The Sme Loan
Author: Manish Damani

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: