An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons Posted in U.N. organisations and official deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian Origin are treated on par with non- resident Indian citizen (NRIs).

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1. For the purposes of Availing of the facilities of opening and maintenance of bank accounts and investments in shares/securities in India :
   
   A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of Indian origin, if,
   1. he, at any time, held an Indian passport, or
   2. he or either of his parents or any of his grand parents was a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955 (57 of 1955).

   Note : A spouse (non being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a person of Indian origin is also treated as a person of Indian origin for the above purposes provided the bank accounts are opened or investments in shares/securities in India are made by such persons only jointly with their NRI spouses.

2. For investments in immovable properties:
   
   A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Napal), is deemed to be of Indian origin if,
   1. he held an Indian passport at any time, or
   2. he or his father or paternal grand-father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian nationality or origin resident outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of atleast 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which atleast 60% of the beneficial interest is irrevocable held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees, The various facilities granted to NRIs are also available with certain exceptions to OCBs so long as the ownership/beneficial interest held in them by NRIs continues to be atleast 60%.

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Yes. In order to establish that the ownership/beneficial interest in any OCB held by NRIs is not less than 60%, the concerned body/trust is required to furnish a certificate from an overseas auditor/chartered accountant/certified public accountant in form OAC where the ownership/beneficial interest is directly held by NRIs, and in form OAC 1 where it is held indirectly by NRIs and further that such ownership interest is actually held by them and not in the capacity as nominees.

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1. Maintenance of bank accounts in India.
2. Investments in securities/shares of, and deposits with,Indian firms/companies.
3. Investments in immovable properties in India.

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NRI's and PIO's are generally confused with the plethora of accounts that can be opened by them in India.

The basic premises that the RBI looks at, is that the NRI's/PIO's should get a better deal depositing their funds in India than elsewhere outside India.

The RBI whilst establishing these rules for making deposits looks at two fundamental criteria:

The interest rates on deposits with repatriation are lower.
The interest rates on deposits without repatriation are higher.

With this in view the RBI has designed various accounts to suit the convenience of the NRI's & the PIO'S.

1. Send a xerox copy of your passport.
2. Send a xerox copy of your visa.
3. Send the duly filled application form.
4. Enclose along with this a cheque or DD.

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NON RESIDENT EXTERNAL RUPEE ACCOUNT SCHEME

1. ACCOUNTS THAT CAN BE OPENED:

a. Savings Account
b. Current Account
c. Recurring Deposit Account
d. Fixed Deposit Account

2. RATE OF INTEREST

Indicative Rates:

SB Account : 1.5%
Fixed Deposit Account : 3% - 4.5% depending on the period.

5. WHAT CAN THESE FUNDS BE USED FOR?

a. Payments within and outside India
b. Transfer to other Funds/Accounts of the person or any other person eligible to maintain such Accounts
c. Certain Investments

6. REPATRIATION OF FUNDS TO NON-RESIDENT NOMINEE

Any amount lying in the Account of a deceased Account Holder may be transferred to his Non - Resident Nominee.

8. CONCLUSION

a. The money is brought in FX and converted on that day's FX rate.
b. On the day when the amount is to be taken back, reconversion is to be effected on that day's rate.
c. Loss or gain on FX fluctuation is to the NRI's ACCOUNT.

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