FOREIGN CURRENCY

1) FCNR accounts

FCNR is shortened from Foreign Currency Non Resident.  This account can be opened by any Indian living out of India. These accounts can be opened using the United States Dollar, the Pound, the Euro, the Yen, the Canadian Dollar, and the Australian Dollar. There is a limit on deposit; in this case you need to have it open for one to five years. Interest of this account will need to be paid with the same currency used for the deposit and interest has complete freedom of repatriation. When opening you account, you have to deposit a certain amount of money first. With the Dollar, the Euro, and the Pound, you need to deposit at least one thousand. With the Yen, you need to deposit at least one hundred thousand. If you close your account before it has been open for one year, interest is not permitted. However, you will be charged for closing the account early. FCNR accounts are opened in only selected banks.

2) RFC accounts

RFC is shortened from Resident Foreign Currency. An RFC account is available to those who were Non Resident Indians, but have come back to India to stay. However, you have to be back in India for the course of at least one year before you can open an RFC account. These accounts can be opened using the United States Dollar, the Pound, the Euro, the Yen, the Canadian Dollar, and the Australian Dollar. You can only put money into the account that was left over from your previous NRE account or FCNR account, money that you have obtained from possessions in another country, or any other annuity that you obtained from another country. Money in your RFC account can only be sent to another country for you or your family. If for any reason, you decide to leave India again, your money can be put into an NRE account or an FCNR account.

INDIAN RUPEE ACCOUNTS

1) NRE accounts

NRE is shortened from Non Resident External.  This account just uses the Indian Rupee. You can open this account alone, or share it with another NRI. You can only put money into your account that has been sent from another country or has been obtained from another NRE account or an FCNR account. Interest in this account has no taxes and has complete freedom of repatriation. You will be charged if you close an NRE account early.

2) NRO accounts

NRO is shortened from Non Resident Ordinary. This account just uses the Indian Rupee. This account is available to NRIs and PIOs. If you are a resident in India and have a bank account open, it will be changed to an NRO account if you every move to a different country. You can open this account alone, or share it with another NRI or PIO. You can only put money into your account that has been sent from another country or if it is money that you owe money to India. Interest in this account has taxes on it. There is a limit of one million US Dollars that can be sent into your NRO accounts in India.