Joi

nCAI
IBWI
THASHOKonYouTube
BFM-MODULE-A
Chapt
er3:Cor
respondentBanki
ng
Whatwewi
llst
udy:
*
Whati
sCor
respondentBanki
ng
*
Whatser
vicesar
eof
fer
edbyCor
respondentbanks
*
Whati
sNOSTOACCOUNT
*
Whati
sVOSTROACCOUNT
*
Whati
sLOROACCOUNT
*
Whati
sMI
RRORACCOUNT

Repat
ri
abl
e:Repat
ri
abl
efi
nanci
alasset
sar
e
fi
nancialassetscapabl
eofbeingwithdrawnfrom
anaccounti naforei
gncountryandbeingdeposit
ed
toanaccounti naninvest
or'
scountr
yofr esi
dence
orci
tizenshipand
i
fthef
inanci
alasseti
sacur
rency
,it
sconversi
on
f
rom f
orei
gncurrencyt
ohomecountrycur
rency.
WhyweneedofI
nter
nat
ionalbanki
ng:
ThelargenumberotIndi
ansIivi
ngabr oad,send
remit
tancest
otheircountr
y,forsustenanceotthei
r
nearanddearones,asalsoforsavingspurposes.
NRIfundsconst
it
utealargecorpus,
fort
he
countr
y'sFOREXresour
ces,andhaveaplaceof
i
mpor t
anceofit
sown.

CORRESPONDENTBANKI
NG:

Correspondentbanki
nginit
struesense,isthe
rel
ationshi
pbetweentwobankswhi chhav emutual
accountswitheachother
,oroneoft hem has
accountwiththeother
.

Howev er,
inalar
gersense,t
hismeansa
rel
ati
onshipandservi
cingofbanki
ngneeds,as
agents,wit
houthav
ingaccountrel
ati
onshi
palso.
Becauseitwasnotpossi
blet
ohaveandmai
ntai
n
account
swithalar
genumberofbanks.

Thus,cor
respondentbankingisapract
ice,wherea
bankisabletohandlebusinessi
nanotherci t
yor
countr
y,t
hroughlocalbanksther
e, t
helocalbank
acti
ngasanagentoft heformer,andchargingfees
fort
heservicesr
endered.

Benef
it
sofCor
respondentbanki
ng:

Thi
ssyst
em el
iminatestheneedt ohav
eaglobal
net
workofbr
anches, whi
chI nvol
veshi
ghcost
sand
vol
umestoserv
icethebr anches.

Further
,itwasnotpossi blef
orallint
ernati
onal
bankstoobt ai
nper missionforopeningofbranches
i
nsev eralcountr
ies,duet or
estri
ctedforei
gnbank
branchlicensi
ngpolici
esadopt edbysome
countri
es.
Thusthecorrespondentbanki ngsystem al
lows
bankstotakeadv antageofthebusiness
opport
unit
iesinot hercountr
ies,wit
houtabr anch
networkofit
'sownandwi thmi ni
mum operat i
onal
costs.

Funct
ionsHandledorser
vicespr
ovi
dedby
Corr
espondentBanks:
1-AccountSer
vices
2-
BankAccount
s

AccountSer
vices:

a)Cl
ear
ingHousef
unct
ions:Thecor
respondent
bankoffer
sserv
icesrelat
edtohandl
ingofout
ward
payments,r
ecei
ptsofinwardpaymentsand
col
lect
ionthr
oughtheaccountmaintai
nedwit
hit
.
b)Col
lect
ions:Cor
respondentbankspr
ovi
de
servi
cesasagentstocollecti
onofexpor t/
impor
t
bil
lsaswellascheques,i
nt heircountr
y.Theyal
so
creditt
heproceedsofsuchcol lecti
onsaft
er
real
izati
ontotheaccountmai ntainedwit
hthem.
C)Payments:Thecorrespondentbankhandl
esand
execut
esallpaymentInstr
ucti
onsofthecli
entbank,
bydebit
ingtotheacountmaintainedwi
thit
.

D)Ov erdraft
sandloanfaci
li
ty:Thecor
respondent
bank,byv ir
tueofhavi
nganaccountoftheclient
bank,alsogr ant
sover
draft
sfortemporaryneeds,
say,overnight,t
ofi
l
lupshort-
termfundi
nggaps.
E)Invest
mentServ i
ces:Thecorrespondentbank
off
ersservi
cesrelatedtoinvest
mentofov erni
ght
surpl
usbalancesint heaccount
,beyonda
minimum pegbalance, att
hedomest i
ccallrat
es
minusasmal lmargin.
ForAtoEbankneedaccountwi
tht
he
corr
espondentbank
 Joi
nCAI
IBWI
THASHOKonYouTube

F)Ot
herSer
vices:
Theseserviceswouldnotnormallyrequir
eaccount
rel
ati
onship,andcanbeofferedonst andalone
basisdependingupontherel
ationshipandcr edi
t
assessmentbyt hecor
respondentbank.
i
)Let
terofCr
edi
tadv
isi
ng
i
i)LCconf
ir
mat
ions(
LineofCr
edi
t)
i
ii
)Banker
sAccept
ances
i
v)ssuancesofGuar
ant
ees
v)Forei
gnExchangeser
vices,
incl
udi
ngder
ivat
ive
product
s
vi
)Otherfundr
aisi
ngserv
ices,l
ikepl
acementof
shar
es,bonds,
ADR/ GDRectc.
v
ii
)Tr ai
ningandseminar
sonv
ari
oust
opi
cs/
on
l
atestdevelopment
s.
 BankAccount
s:
Theforei
gncur
rencyaccount
smai nt
ainedbya
bank,wit
hanot
herbankareclassi
fi
edasNOSTRO
andLOROaccounts.

NOSTROaccount
:Itmeans"
Ouraccountwi
thYou'
".
Forexample,PNB,Mumbaimai
ntai
ningaUSD
accountwit
hCITIBank,
NewYorkisNOSTRO
accounti
nthebooksofPNB,Mumbai .

VOSTROaccount
:Itmeans"
Youraccountwi
thUs"
.
SayAmericanExpr
essBank,NewYork,
maint
ani
ng
aRupeeAccountwithPNB,Mumbai,
isVOSTRO
accounti
nthebooksofPNB,Mumbai.
LOROaccount:I
tret
erst
oaccount
sofot
herbanks,
i
.e."
Thei
raccountwit
hthem"
.
Forexampl
e
1-Ci
tiBank(
NY)r
efer
ri
ngt
o
RupeeaccountofAmer
icanExpr
essBank,
wit
h
PNBMumbai ,
or
2-BankofEngl
andref
err
ingtot
heUSDaccountof
PNB,MumbaiwithCit
iBank,
NewYork.
LOROi
sanI
tal
ianwor
dwhi
chl
it
eral
lymeansThei
r.
Hence,
Lor
oaccountmeans"
Thi
rdPar
tyAccount
.

Mi
rr
oraccount
:Whi
leabankmai
ntai
nsNOSTRO
accountwit
haf
orei
gnbank,
(most
lyi
nfor
eign
curr
ency)
,
I
thastokeepanaccountofthesameinit
sbooks.
Thi
sismoreorlessaref
lect
ionorashadowofthe
NOSTROaccount.
Theentri
esinthemir
roraccountar
eusedf
or
reconci
li
ati
onofent
ri
esintheNOSTROaccount
.
Themir
roraccountismaintai
nedint
wocurr
encies,
oneofwhichi
sthef or
eigncurr
encyandt
heother
onei
shomecur rency

Joi
nCAI
IBWI
THASHOKonYouTube
 J
oinCAI
IBWI
THASHOKonYouT
ube
BF
M-MODUL
E-A
Chapt
er3:Corre
sponde
ntBanki
ng(
PART
-II
)
Whatwewi
llst
udy:

ELECTRONI
CMODESOFT
RANSMI
SSI
ON/PAYMENT
GATEWAYS
SWI
FT
CHI
PS
CHAPS
NEF
T
RT
GS
RT
GS+
SWI
FT:(
HQ:BEL
GIUM)
Whatis SWI
FT:SWIF
Tis a sy
ste
mt ot ransmi
t
fi
nanci
almessage
sbe
twe
enbanksglobal
ly.
OR
SWIFTisavastme ssagi
ngne t
workusedbybanks
and ot herf inancial i
nsti
tuti
ons t
o qui ckly,
accurately, and se curel
y send and rece i
ve
i
nformat i
on, such as mone y t ransfer
i
nstruct i
ons.

SWI
FTst
andsf
or:
Socie
ty for Worldwi
de I
nte
rbank F
inanci
al
Tel
ecommuni
cat
ions.
*Thi
sisacoope rati
vesociety
,owne
dbyme
mbe
r
banksandf
inancialinst
itut
ions,
*Swi
ftprovidese cure
dt ele
communi
cati
on and
one point contact with more than 11,000
fi
nanci
alinsti
tut
ions,spre
adover200countries.
Ol
dme
ssageaut
hent
icat
ionsy
ste
m:(
BKE)
*Thesyst
emhasbuiltinsecuri
tysy stemwi
than
automati
cauthent
icat
onoff i
nancialmessage
s
throughbil
ate
ralkeyexchange(BKE).

Avai
labi
li
tyofSWI
FT:
I
tisavai
labl
e24hoursadayand365 day
sina
y
ear.
*
Thesy
ste
miscoste
ffe
cti
ve.
Ne
wme
ssageaut
hent
icat
ionsy
ste
m:(
RMA)
SWIFT has i nt
roduced ne w sy stem of
authenti
cation of me ssages be twee n banks,
whereby banks are re qui
re d t o have a
authenti
cation key exchanged bet
ween
themselves ,through a setf ormatbyuseof
Rel
ationshipManagementApplicati
on( RMA)

J
oinCAI
IBWI
THASHOKonYouT
ube
CHI
PS:
(NY,USA)NET
CHI
PS:Cl
eari
ngHouseI
nte
rbankPay
mentSy
ste
m
CHI
PS i
s a maj
or payme
nt sy
ste
mint
he USA,
ope
rati
ngsi
nce1970.
*
Iti saf ull
y automated;computer based
messagi
ng and netsett
lementpaymentsystem
usedbymaj orbanksforsettl
ementofal arge
partofUSdol l
arpaymentsintheUSA.
*CHI
PS was establi
she
d by New York Cl
eari
ng
House,asasubstit
utetopape
rche que
s.

*CHI
PSisoperat
iveonlyi
nNe wYork,andassuch,
i
smai nl
yuse df orfore
ign exchangeInt
erbank
sett
lement
sandEuroDol larsettleme
nts.

T
hesy
ste
muse
s
CHIP part i
cipant code
s t
o i
dent
ify t
he
parti
cipant
s,and
UI
Dnumbe
rst
oide
nti
fyt
hebe
nef
ici
aryaccount
.
The banks mai nt
aini
ng US dol l
ar Nost ro
account swi t
h anyoft heUS base d banksare
given a specifi
c UID numbe r,whi
ch facili
tat
es
StraightT hrough Processing (
STP)ofmostof
the Interbank payments and recei
pts,through
thesy st
e m.

F
edwi
re:
(USA)GROSS

ThisisanotherUSpay me
ntsy st
em operat
edby
FederalRese
rveBank,operat
edal lovertheUS
states si
nce 1918,and handles maj
ority of
dome st
icpay
ments.
I
tis an automated comput
er-
base
d me
ssagi
ng
and pay ment sy st
em, working on gross
sett
lementbasis.
All US banks mai
ntain account
s wit
hF ede
ral
ReserveBank,andareallottedan"ABAnumbe rs'
to i denti
fy the senders and receive
rs of
payme nts.
As compare
dt o CHI
PS,t hisisal
argesy
ste
m,
wi
thove r9,
000parti
cipants.

CHIPS: Cl
eari
ng House I
nte
rbank Pay
ment
System(
NY)
CHAPS: Cleari
ng House Aut
omat
ed Pay
ment
s
Syste
m(London)

CHAPS:(
LONDON)NET
CHAPS: Cl
eari
ng House Aut
omat
ed Pay
ment
s
Syste
m
I
ti s Briti
sh equi
val
ent to CHI
PS,handl
ing
rece
ipt
sandpay
me nt
sinLONDON.
Thi
s syst
em works on t
he same pri
ncipl
es as
CHI
PS,worki
ngonthenetpay
me ntsyste
m.
CHAPSisusedbyal argenumbe rofbanksI nUK
with about 20 me
mbe rs banks and over 4500
i
ndirectmembersusingthesy st
emt hroughsome
largerbank
 J
oinCAI
IBWI
THASHOKonYouT
ube
T
ARGET
:(EURO)GROSS
Trans-European Automated Real-T
ime Gross
Settle
me ntExpre
ssTransf
ersyst
e m

I
tisaEUROpay
mentsy
ste
m.
T
hepre
sentSy
ste
misT
ARGET
2.
T
he use of TARGET
2 is mandatory for t
he
sett
lementofpayeurooperat
ionsinvoi
vingt
he
Eurosyst
em.
TheEurosystemconsi
stsoftheEuropeanCenral
Bank(ECB)andthenati
onalcentralbanksofthe
19EuropeanUni onmemberstat
e sthatarepart
oftheEuroz one
.

J
oinCAI
IBWI
THASHOKonYouT
ube
6.RT
GS-
plusandEBA:(
EURO)GROSS

T
heseareot
herEurocl
eari
ngsy
ste
ms,wi
th
RTGSplus,beingaGermanhybri
dcl earingsyst
em
andOperatingasanEuropean-orie
nt e
dre alti
me
grosssettlementandpayme
ntsy stem.
RT
GSpl
ushasove
r90part
ici
pant
s.
EBAi
ncl
ude
s(EuroBanki
ngAssoci
ati
on)
EURO1:f
orhi
ghval
uepay
ment
ssy
ste
m
ST
EP1:Apay
mentsy
ste
mforre
tai
lpay
ment
s
STEP2 : A Pan-Europe
an Aut
omat
ed Cl
eari
ng
House(PE-
ACH).
STEP2f aci
lit
atesstraightthrough processi
ng
(STP)t
ome mberbanks,
usingi
ndustrystandards.
RT
GS/
NEF
TinI
ndi
a:-

RT
GS:Reserve Bank ofI
ndi
a has i
mpl
eme
nte
d
RealTi
meGrossSe ttl
ement(RT
GS)systemforthe
banksinIndi
a,whe rebankscanre mi
tf undsto
otherbanksthrought hi
smechani
sm.
T
heRT
GSsy
ste
mismanage
dbyI
DBRT
,Hy
derabad,
I
DRBT:Inst
itut
ef orDe
vel
opme
ntandRe
searchi
n
Banki
ngTechnology
RTGS connect
s allbanks t
o a ce
ntralse
rve
r
maint
ainedatRBI
.
Eachbankmai nt
ainsapoolaccountwit
ht heRBI
forinflow andout f
low offundsrecei
ved/
pai
d
throughRTGS.
Gui
del
ine
sonRT
GS:
Mi
n=2L
ac
Max=nol
mit
Cust
ome
rtransact
iont
ime:
7AMt
o6PM
Bankt
ransact
iont
ime:
7AMt
o7:
45PM

T
imi
ngofvari
ousphase
s:
Ope
nphaset
ime=7AM
*
Ini
ti
alcut
offt
ime
=6PM
*
Finalcutof
fti
me=7:
45PM
*
Reve
rsalt
ime=7:
45PMt
o8PM
Therecei
vingbankshouldcre
ditt
he cust
ome
r
accountwithi
n30minute
s.

J
oinCAI
IBWI
THASHOKonYouT
ube
NEF
T:
T
hisisanot
herfundst
ransf
erfaci
li
t yf
orbanks
i
nIndi
a,whi
chrunsonabatchprocessmet
hod.
Thisi
susedf orsmallremitt
ancesbycustomers
from an account with one bank t
o another
accounti
naot herbank.
The funds adjust
ment f
or NEF
Tis also done
t
hrough t he pool accounts mai
ntaine
d by
i
ndi
vidualbanks.
L
ate
stgui
del
ineonNEF
T:(
wef16De
cembe
r2019)
Avai
labi
li
ty:
24*
7*365
MI
N:Nol
imi
t
MAX:Nol
imi
t
*
Set
tle
menti
nbat
che
s
*
Bat
chrune
veryhal
fhour
*
Firstbat
ch:00:
30
*
Lastbat
ch:23:
30
*
Tot
albat
ch=48
There ce
ivi
ngbankshouldcre
ditthecust
omer
accountwi t
hin2hoursf
romthebatchi
nwhich
transacti
onisset
tle
d.

F
ullF
orm:
SWIF
T: Soci
ety for Worldwi
de I
nte
rbank
Fi
nanci
alT
e l
ecommuni
cat
ions.
CHIPS: Cl
eari
ng House I
nte
rbank Pay
ment
System(
NY)
CHAPS: Cl
eari
ng House Aut
omat
ed Pay
ment
s
(L
ondon)
RT
GS:Re
alt
imegrossse
ttl
eme
nt
NEF
T:Nat
ionale
lect
roni
cfundst
ransf
er
TARGET :Trans-
European Automat
ed Real
-Ti
me
GrossSett
lementExpre
ssT ransf
ersyst
em
EBA:EuroBanki
ngAssoci
ati
on

J
oinCAI
IBWI
THASHOKonYouT
ube
 Joi
nCAI
IBWI
THASHOKonYouTube
BFM-MODULE-A
Chapt
er3:Cor
respondentBanki
ng&NRIBanki
ng
(PART-I
II
)
Whatwewi
llst
udy:

*
Whati
sNRIBanki
ng?
*
Whoi
sNRI?
*
Whati
sNREAccount?
*
Whati
sNROaccount?
*
Whati
sFCNR(
B)account?
NRIBANKI
NG:
Indi
a needs to servi
ce the r
equirement
s ofi ts
people,st
ayı
ngabr oadforbusinessorprofessi
on,
oranyot herpur pose orthose who are sett
led
abroad.
Assuch, speci
fi
crulesforopeningofaccountsand
maintenanceofnonr esi
dentIndi
ans,i
tsoperati
ons,
repat
riabil
ity
,inter
estpay ments,inv
estment sand
otherf aci
li
ti
eshav ebeenf r
amedbyt heReser v
e
BankofI ndiaandtheGov er
mmentofI ndi
aunder
FEMA.

Def
ini
ti
onofNRI:
AsperI
ncomet
axAct1961:
Apersonwhost
ayi
nI ndi
af ormor
ethan182day
s
i
nprevi
ousFYi
scal
ledResident
.
Soapersonwhost
ayi
nIndi
afor0t
o182day
sis
cal
ledNRI
.

Joi
nCAI
IBWI
THASHOKonYouTube
Aspert
heFEMA1999,
Non-
Resi
dentI
ndi
ani
s:
Per
sonwhoi
sci
ti
zenofI
ndi
a:
i
)Aper
sonr
esi
dentout
sideI
ndi
awhoi
sa
cit
izenofIndi
a,i.
e.I
ndianci
ti
zenswhopr
oceed
abr
oadf oremploymentor
f
orcar
ryi
ngonanybusi
nessv
ocat
ionor
Foranyot
herpur
pose(
li
kewor
kingi
nWB,
UNOet
c)
i
ncircumstancesi
ndi
cat
ingi
ndef
ini
teper
iodofst
ay
out
sideIndi
a.
Per
sonofI
ndi
anor
igi
n(PI
O):
Apersoniscal
ledPer
sonoflndi
anorigi
nwhoi
sa
ci
ti
zenofanyot
hercount
ryot
herthan
Bangl
adeshorPaki
stan
andsat
isf
yingt
hef
oll
owi
ngcondi
ti
ons
1-
Whowasaci
ti
zenofI
ndi
a
2-Who is a chi
ld ora grandchi
ld ora gr
eat
gr
andchi
ldofaci
ti
zenofI
ndia.
3-Aspouse,whoisaf orei
gnciti
zen,ofanI
ndi
an
ci
ti
zenorapersonofI
ndianori
gin.
4-
A personi sofIndi
anor i
ginifhehasheld an
I
ndian passpor
t,orhe oranyofhi s par
ent
s or
gr
andparentswasacit
izenofIndi
a.
*
PIOal
soi
ncl
udean'
Over
seasCi
ti
zenofl
ndi
a'(
OCI
)

Thus,in gener
al,an NRIis a per son ofIndi
an
nati
onal
it
y or or i
gin,who r esides abroad f
or
busi
nessorv ocati
onorempl oy mentandandt he
peri
odofstayabroadisi
ndef
inite.

Whoel
sei
scal
ledNRI
:
1-
Gov er
nmentof i
cial
sgoingabroadonpost
ingto
I
ndianmi ssi
onsorWor l
dBank,
IME,et
c,ar
eNRIs.
2-St
udents goi
ng abr
oad f
orhi
gherst
udi
es ar
e
consi
deredasNRIs.

3-Aspouse,whoisaf orei
gnCiti
zen,ofanIndi
an
ci
ti
zenorapersonofI
ndianori
ginisal
sotreat
edas
a per
son ofI
ndian or
igi
n and any account
s or
i
nvest
mentsmustbeinthejoi
ntnamesofspouse.
4-
Tour
ist
sonbr
iefv
isi
ttof
orei
gncount
ri
esar
e
notcat
egor
izedasNRl
s.

Ov
erseascor
por
atebodi
es(
OCB)
:
Overseasfi
rms,tr
ustsorcompani
es,
predominantl
y
ownedbynon-r esi
dentIndi
ansar
ecall
edOverseas
Corporat
eBodies.

The l
evelofowner
shi
p ofNRIsin such bodi
es
shoul
d be mi
nimum 60%,by one ormore NRI
owners.
Not
e:OCBar
enotal
lowedt
omakei
nvest
ment
sin
I
ndi
a.
NRIACCOUNTS-RUPEEANDFOREI
GNCURRENCY
ACCOUNTS
NRIhavebeenpr ovi
dedwithvari
ousschemest
o
openbankaccountsandi
nvesti
nIndi
a.
1.Non-Resi
dent(
Ext
ernal
)RupeeAccount(
NRE)
(RUPEE)
2.Non-Resi
dentOr
dinar
yRupeeAccount(
NRO)
(RUPEE)
3.For
eignCurr
ency(
Non-
Resi
dent
)Account(
Banks)
[
FCNR( B)](
RUPEE)(
FD)
4.Speci
alNon-
Resi
dentRupeeAccount-
SNRR
account

Joi
nCAI
IBWI
THASHOKonYouTube
 NRO NRE FCNR
Cur
rencyof Rupee Rupee Forei
gn
deposit Cur
rency

Accountt
ype SA/
CA/
RD/
TD SA/
CA/
RD/
TD ONLYFD/
TD

Joi
ntaccount Al
lowed Al
lowed Al
lowed

Nomi
nat
ion Al
lowed Al
lowed Al
lowed

Mi
nFDorTD 7Day
s 1y
ear 1y
ear

MaxFDorTD 10y
ear
s 10Year 5y
ear
s

J/
Aoper
ati
on ForS ForS ForS

Taxoni
ncome Taxabl
e Not
ax Not
ax

Repat
ri
ate Max1mi
ll
ion Ful
l Ful
l
USDi
nayear

Cr
edi
t For
eign Onl
yforei
gn Onl
yforei
gn
r
emi t
tances remit
tance remit
tance
+l
ocalincome

Exchanger
isk N/
A oncust
omer onbank

I
nter
estr
ate Asperbank Asperbank Li
nkedwi
th
LI
BOR
Non-
Resi
dentOr
dinar
yRupeeAccount(
NRO)
:
Rupeeaccount
Taxabl
e(30%changeabl
e)
SA/
CA/
RD/
FD(
NROTONROOK,
NROTONRENOTOK)
I
tisopenedbyNRIandFor
eignt
our
ist
sal
so.
Typi
cal
lywhenresi
dentbecomesnonresidentshi
s
domest
icrupeeaccounthast
obere-
designatedas
anNROaccount.
Thisisbasicall
yadomest i
caccountofan NRI ,
openedandmai nt
ainedtofacil
itat
ecr edi
tswhich
accruedi
nIndia,fr
om invest
ment sthatweremade
priort
ohisl
eav i
ngt hecountr
y,rent,LI
Cmat ur
it
ies
etc.
For
eignt
our
ist:
NROaccountcanbeopenedbyaf
orei
gnnat
ional
t
our
istv
isi
ti
ngIndi
a.
Fund:eit
herTTfr
om abr
oadorf
orext
hathe
broughtwit
hhi
m.
Retur
noft ouri
st:BalanceinNROaccountmaybe
paidt o the touri
st ifthe account has been
maintai
nedf oraperiodnotexceedingsixmonths
andaccounthasnotbeencr edi
tedwi thanylocal
fund'
sotherthanint
erestaccr
uedthereom.
(
NRE)Non-
Resi
dent(
Ext
ernal
)RupeeAccount:
Rupeeaccount
Not
ax
Exchanger
iskoncust
omer
SA/
CA/
RD/
FD
NRETONREOK
NRETONROOK

Cr
edi
tsi
naccount:
(i
)remitt
ancesfr
om abr
oadbywayofTT,cheques,
draf
ts,oreventr
anst
erfrom anot
herNon-
Resi
dent
account,
asalso
(i
i) by t
enderi
ng of f
orei
gn cur
rency t
rav
eler
s
chequesornotesbytheNRIduri
nghistemporar
y
vi
sittoI
ndia,
For
eignCur
rency(
Non-
Resi
dent
)Account(
Banks)
[
FCNR(
B)Account
s]:
For
eignecur
rencyaccount
Not
ax
Noexchanger
iskoncust
omer
FDorTDonl
y
Since FCNR (B)isat erm deposi
taccount,the
permit
tedcreditisappli
cabl
eonlyforopeningthe
accountandper mitt
eddebitwoul dbeapplicabl
e
onlyforofcl osure orprematur
e closur
e ofthe
account.

Theint
erestonthedepositshal
lbepaidonthe
basi
sof360day stoay ear
,cumul
ati
veonhalf
-
year
lyi
nter
val
sof180days.

Joi
nCAI
IBWI
THASHOKonYouTube
Commonchar
act
eri
sti
csofNRO/
NRE/
FCNR:

Joi
ntoper
ati
on:
Joi
ntaccount
scanbeopenedbyt
woormor
eNRI
s
and/
orPIOsor
byanNRI
/PI
Owi
thar
esi
dentr
elat
iveon
f
ormerorsur
viv
orbasi
s
i
.eNRI+NRI
NRI+r
esi
dent
Howev er,duri
ng t
he li
fetime oft he NRI/PI
O
accountholder
,theresi
dentrel
ati
vecanoper at
e
theaccountonl
yasaPowerofAttor
neyholder
Rest
ri
cti
ononPowerofAt
tor
neyhol
der
Hecan'
tmakel
ocalwi
thdr
awal
s.
Hecansendmoneyabr
oadbutonl
ytoaccount
hol
der
(NRI
).

Joi
nCAI
IBWI
THASHOKonYouTube
SpecialNon-
Resi
dentRupeeAccount-
SNRR
account:(
RUPEE)(NROTOSNRRNOTOK)
Anypersonresi
dentout
sideI
ndi
a,hav
inga
busi
nessint
eresti
nIndi
a,mayopenaSpeci
alNon-
Resi
dentRupeeAccount(SNRR)
Forthepurposeofputt
ingt
hroughbonafi
de
tr
ansacti
onsinrupeesnoti
nvolv
inganyvoil
ati
onof
prov
isi
onsofactrulesandregul
ati
ons.
Tenur
e:Maxi
mum 7y
ear
s.
Tax:YesTaxabl
e
*
Balancesint
heSNRRaccountshal
lbeel
igi
blef
or
r
epatr
iati
on
*
SNRRaccountmaybedesignatedasr esi
dent
r
upeeaccountont
heaccountholderbecominga
r
esi
dent.
*OpeningofSNRRaccountsbyPakist
anand
Bangladeshnat
ionalsandent
it
iesi
ncorpor
atedin
Paki
stanandBangl adeshr
equi
respri
orapprov
alof
ReserveBank.
Joi
nCAI
IBWI
THASHOKonYouTube