TaxTMI 
TaxTMI 
Non-Resident (External) Rupee Account Scheme – NRE Account
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....unts may be maintained in any form, e.g. savings, current, recurring or fixed deposit account etc. 3. Permitted Credits: (a) Proceeds of remittances to India in any permitted currency. (b) Proceeds of personal cheques drawn by the account holder on his foreign currency account and of travellers cheques, bank drafts payable in any permitted currency including instruments expressed in Indian rupees for which reimbursement will be received in foreign currency, deposited by the account holder in person during his temporary visit to India, provided the authorised dealer/ bank is satisfied that the account holder is still resident outside India, the travellers' cheques/ drafts are standing/ endorsed in the name of the acc....
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.... agencies/ seller on account of non-allotment of flat/ plot/ cancellation of bookings / deals for purchase of residential/ commercial property, together with interest, if any (net of income tax payable thereon), provided the original payment was made out of NRE/ FCNR(B) account of the account holder or remittance from outside India through banking channels and the authorised dealer is satisfied about the genuineness of the transaction. (j) Any other credit if covered under general or special permission granted by Reserve Bank. ^2[(k) Transfer from NRO account within the limit specified in Regulation 4 of Foreign Exchange Management (Remittance of Assets) Regulations, 2016.] 4. Permitted Debits: (a) Local disbur....
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....bject to the provisions of the relevant Regulations made under the Act (b) Repayment shall be made either by adjustment of the deposit or by fresh inward remittances from outside India through banking channels or out of local rupee resources in the NRO account of the borrower. (2) To third parties: Authorised dealers and authorised banks may grant loans to resident individuals/ firms/ companies in India against the collateral of fixed deposits held in NRE account subject to the following conditions: (i) The loan should be utilised for personal purposes or for carrying on business activities except for the purpose of relending or carrying on agricultural/ plantation activities or for investment in real estate business. ....
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....upon the return of the account holder to India for taking up employment or for carrying on business or vocation or for any other purpose indicating intention to stay in India for an uncertain period. Where the account holder is only on a short visit to India, the account may continue to be treated as NRE account even during his stay in India. 8. Repatriation of funds to non-resident nominee: Authorised dealers/ authorised banks may allow remittance of funds lying in the NRE account of the deceased account holder to his non-resident nominee. 9. Miscellaneous: (a) Joint accounts - Joint accounts may be permitted to be opened in the following cases: (i) In the names of two or more NRIs and/or PIOs (ii) With ....
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....ances other than to the account holder himself, nor to make payment by way of gift to a resident on behalf of the account holder nor to transfer funds from the account to another NRE account. (d) Special Series of Cheques: For easy identification and quicker processing of cheques drawn on NRE accounts, authorised dealers/ banks shall issue cheque books containing a special series of cheques to their constituents holding NRE accounts. (e) Temporary over-drawings: Authorised dealers/ authorised banks may at their discretion/ commercial judgement allow for a period of not more than two weeks, over-drawings in NRE savings bank accounts, up to a limit of Rs. 50,000 subject to the condition that such over-drawings together with ....