Facts About Nre Account You Should Be Aware Of

By Author: Arjit Chalmela
Total Articles: 14
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You can opt between two kinds of NRI accounts – NRE and NRO. Both come with their set of benefits, and you can open either of these or both.
The article highlights the NRE account meaning and some essential facts about the same. Let us learn them.
NRE account overview
They are a particular type of account designed for the NRIs. They are a foreign currency account, which means you can deposit different foreign currencies authorised by the RBI. However, since they are essentially an Indian account, the foreign currency parked in the account gets immediately converted into INR. The bank applies the currency conversion rate of the specific day on which the sum gets deposited.
Eligibility for opening the account
For opening the NRE account, you should meet the following criteria:

An Indian resident moving overseas
An NRI or PIO ...
... under the FEMA definition
A seafarer of Indian origin or nationality who is employed by the overseas shipping company
Indian Government employee holding a diplomat passport
An Indian student pursuing higher education in a foreign country

Currencies allowed for deposit
You can deposit a range of currencies in the NRE account. The RBI enabled NRIs to park only basic currencies such as American dollars, Euros, Great Britain, Pound Sterling, and Japanese Yen. However, nowadays, NRIs can deposit other currencies that include Australian dollars, Canadian dollars, New Zealand dollars, Singapore dollars, Swiss Francs, Swedish Krona, and Danish Krone.
Different accounts you can open
The accounts you can open are like those you can open as a resident Indian bank account holder. For instance, you can open both savings and current NRE account. You can open a recurring deposit in which you deposit a fixed sum of a specific foreign currency, although all banks do not offer this facility.
Likewise, you can open FD account, widely called an FCNR deposit. However, under NRI accounts, there is no provision for salary or zero-balance accounts. You may need to maintain an average balance of INR 75,000 or equivalent in foreign currencies.
Repatriation
All NRE accounts are repatriable. It means you can freely and entirely repatriate both the principal deposited and the interest earned on the deposits.