NRE Student Account

• Type of Accounts - Savings (Recurring, Fixed Deposit are allowed as deposit products)
• Currency – Indian Rupees

Credits permitted to this account are inward remittance from outside India, interest accruing on the account, interest on investment, transfer from other NRE/ FCNR(B) accounts, maturity proceeds of investments (if such investments were made from this account or through inward remittance). Current income like rent, dividend, interest etc. will be construed as a permissible credit to the NRE account. Care: Only those credits which have not lost repatriable character

Permissible debits are local disbursements, remittance outside India, transfer to other NRE/ FCNR(B) accounts and investments in India.

Rate of interest applicable to these accounts shall be in accordance with the directions/ instructions issued by Reserve Bank from time to time.

NRE accounts should be designated as resident accounts immediately upon the return of the account holder to India for taking up employment or on change in the residential status.

• Who can open an account - NRIs and PIOs (Student)
  Individual/entities of Pakistan and Bangladesh shall requires prior approval of the Reserve Bank of India
• Joint account - Joint accounts may be permitted to be opened in the following cases: May be held jointly in the names of two or more NRIs/ PIOs.
  NRIs/ PIOs can hold jointly with a resident close relative on ‘former or survivor’ basis (close relative as defined in Companies Act, 2013). The resident close relative can operate the account as a Power of Attorney holder during the life time of the NRI/ PIO account holder.
• Repatriablity – Funds lying in the account are freely Repatriable.
• Taxability - Income earned in the accounts is exempt from income tax and balances exempt from wealth tax.
• Operations by Power of Attorney in favour of a resident - Operations in the account in terms of Power of Attorney are restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels.