NRE Account stands for Non Resident External Account,In that, E-External is the key letter.
If you are an NRI (Non Resident Indian) or a PIO (Person of Indian Origin), chances are you already own an NRE account.
If you have recently become an NRI, it makes sense to open an NRE Account.
The income you earn outside of India(External) can be credited into NRE account.
Features of an NRE Account
- Tax Free Account (Both principal and interest)
- Fully Repatriable (Funds can be remitted abroad anytime without any headache)
- Higher interest rates.
- A mandate can also operate the account on your behalf.
- Funds can be withdrawn abroad using international Debit cards.
- Access to netbanking.
- Investment in Mutual Funds and stocks can be made from this account.
- Only foreign currency can be deposited into this account and that too by account holder only.
- Local currency cannot be deposited unless supported by exchange certificate and India Arrival Stamp
- Upto USD 5000 or equivalent foreign currency can be deposited per visit without CDF(Currency Declaration Form)
- Payments/transfers can be made to anyone from this account.
- However, only funds from overseas or from other NRE accounts can be credited into NRE Account.
- If the foreign currency notes brought by you exceed USD 5,000/- or the combined value of Travellers Cheques and notes exceed USD 10,000/-, then you have to submit a Currency Declaration Form (CDF) to the customs authorities on arrival in India
- Can be held jointly also. However, the other holder has to be NRI/PIO too.
- Can be held with a Resident Indian only in Former or Survivor Basis.
Documents needed to open an NRE/NRO Account
- Visa/residence permit/residence card
- Address proof
- PAN Card
- FATCA form
- Nomination form (If applicable)
- AMB form (If applicable)
Hope this post answered questions you had about NRE Accounts.