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Canara Bank - Introduction

Types of Accounts - NRE {Non-resident External} Account

• NRE Accounts can be opened in the form of Savings, Current or Term Deposit in Indian Rupees.
• Accounts can be opened by remittances from abroad or by transfer of funds from existing NRE/FCNR accounts of the same person with other banks in India or from other branches of our Bank.
• Accounts can also be opened by tendering foreign currency notes/travelers cheques brought in by the NRIs during their temporary visit to India.
• The entire credit balance inclusive of interest earned therein can be repatriated outside India without reference to Reserve Bank of India (RBI) in any foreign currency at the choice of the depositor at the ruling exchange rate on the date of remittance.
• Joint accounts can be opened with other NRI's. Opening of NRE accounts in the name of Non-Residents jointly with residents is not permitted.
• NRE accounts can be operated by Resident Indians on the basis of Power of Attorney or a Letter of Authority. However, PA/LA holder cannot cause for repatriation of funds abroad.
• Local disbursements, purchase of units of Unit Trust of India (UTI), Central and State Government Securities and National Savings Certificates can be made from these accounts.
• Sale/Maturity proceeds/repurchase price of units of UTI, securities or certificates originally purchased out of funds in these accounts can be credited without reference to RBI.
• Under term deposits, accounts can be opened for a minimum period of 6 months to a maximum period of 10 years.
• Interest is paid at quarterly intervals. Interest payment can also be made monthly on discounted basis on deposits for 12 months and above on specific requests.
• Loans/Overdrafts in India to deposit holders are available against security of deposits subject to usual norms regarding margin, rate of interest etc., for purposes other than re-lending, carrying agriculture/plantation activities or for investment in Real Estate business.
• Loans against NRE fixed deposits can, however, be utilized for investments in India on non-repatriation basis, in certain specified areas and for acquisition of flats/houses subject to prescribed conditions.
• Cheque Book facility is available for NRE-Savings Bank a/c. Cheques can be issued in Indian Rupees and related to transactions whose settlements will take place only in India.

      
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