All You Need To Know About State Bank Of India NRI Accounts
State Bank of India, the country's largest lender which has a network of over 24,000 branches in India, also offers banking services to the non-resident Indians (NRI). The State Bank of India Non Resident Ordinary (NRO) account, Non Resident External (NRE) account and Foreign Currency Non-Repatriable (Bank) FCNR (B) accounts, according to the lender's website - www.sbi.co.in. State Bank of India has the largest overseas network among all Indian banks with 198 foreign offices spread over 35 countries, SBI noted on its website. (Also Read: SBI Loans To Get Cheaper As Bank Reduces Key Lending Rate)
Here is all you need to know about State Bank of India's (SBI) NRE, NRO and FCNR(B) accounts for non-resident Indians:
Non Resident External (NRE) Accounts
Non Resident External (NRE) accounts can be opened by individually or jointly with other non-resident Indians (NRI), person of Indian origin (PIO) or overseas citizen of India (OCI). SBI offers savings bank account, current account, term deposit, special term deposit and recurring deposit accounts under the NRE services. Funds deposited in the account will be in the form of fresh remittances from overseas or transfer from other NRE/NRO/FCNR (B) accounts, according to SBI. Interest earned on NRE accounts is exempt from Indian Income tax laws SBI added. (Also Read: SBI Instant Money Transfer Service: How To Send Money To Anyone Through SBI Debt Card)
SBI Non Resident Ordinary (NRO)
The State Bank of India's Non Resident Ordinary (NRO) accounts can be opened by any NRI, PIO or OCI. The NRO account's purpose is to park India based current income in rupees in India and the bank offers savings bank account, current account, term deposit, special term deposit and recurring deposit accounts, according to the SBI.
Funds deposited in the account will be in the form of transfer from NRE / NRO / FCNR (B) accounts or fresh remittance from overseas and interest income is subject to deduction of tax at source at the rate of 30.90 per cent. In case, depositor is resident of any of those countries with whom India has a DTAA, the tax will be deducted as per Double Taxation Avoidance Agreement agreed between India and the respective country, SBI said.
SBI Foreign Currency Non-Repatriable (Bank) FCNR (B) accounts
Under the State Bank of India's Foreign Currency Non-Repatriable (Bank) FCNR (B) accounts can be opened by any NRI, PIO or OCI in foreign currency. State Bank of India accepts deposits in US dollar, Great Britain pound, Canadian dollar, Japnese yen and Australian dollars and the principal and interest rate are payable in foreign currency, according to SBI.
SBI offers term deposit and special term deposit category accounts to be opened under the FCNR(B) accounts and the interest earned on FCNR(B) accounts exempted from Indian Income tax laws, SBI said. The FCNR(B) account holders can also avail loans in foreign currency or rupee against their FCNR(B) deposits.
