State Bank of India, the country’s largest lender with over 24,000 branches in India, is widely known for offering banking services to the Non-Resident Indians (NRIs).
According to the lender’s website, the bank provides multiple accounts to NRIs - Non-Resident Ordinary (NRO) account, Non-Resident External (NRE) account, and Foreign Currency Non-Repatriable (Bank) FCNR (B) accounts.
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.
Here is all you need to know about State Bank of India's NRE, NRO and FCNR(B) account for non-resident Indians:
Non-Resident Ordinary Account
The State Bank of India's Non-Resident Ordinary account can be opened by any NRI, a Person of Indian Origin (PIO) or Overseas Citizen of India (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 percent. In case, the 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.
Non-Resident External Account
Non-Resident External account can be opened by individually or jointly with other NRI, PIO or 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.
Foreign Currency Non-Repatriable (Bank) FCNR (B) Account
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 United States 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.
By Sowmya Sangam