Q. What is an NRE Account?
The Non Resident External (NRE) Account is a savings account held in India, in Indian rupees. The Principal and the interest in an NRE account is fully repatriable. Interest income is exempt from Indian Income Taxes.
Q. What are the Benefits offered by the NRE Account?
The NRE Account offers the dual benefit of maintaining an account in Indian Rupees and then converting the funds into a foreign currency at the time of repatriation.
Q. Are my NRE funds repatriable?
Yes. Both the principal and interest are repatriable.
Q. Is the NRE Account operable by a mandate?
Yes, operation of account through a Power of Attorney (POA) holder is allowed. A POA holder can only issue INR cheques from NRE / NRO accounts for legitimate local payments.A POA holder cannot
- Open / close accounts
- Gift funds from the account
- Give instructions regarding fixed deposits
- Give a request for change of address
- Repatriate any funds overseas
Q. Can the NRE Account be jointly held?
Yes an NRE Account can be jointly held. The joint account holder can only be another NRI.