NRI Banking

Appreciating the role of Non Resident Indians in the economic development of the country, the Government has progressively announced various schemes to facilitate investment by Indians based outside India. As regulations are changing almost everyday, one always has a doubt as to the authenticity of the information as well its applicability at the time of use. The information available in various places is generally found to be contradictory as it has not been updated.

Banknet India has released Second Edition of NRIs Handbook for Banking & Investments in July 2004. This handbook edited by Senior Bankers, including those who have worked in the Reserve Bank of India & Treasury of Banks, provides updated & authentic information at one place. This has been sold in more than 50 countries. Handbook provides various definitions, detailed note on all the different types of accounts including rules regarding repatriation; detailed account of all the Investment options available to the NRIs both on repatriation and non repatriation basis. Foreign direct investment both under the Automatic Route as well as Foreign Technical collaborations, issue related to ADRs / GDRs, Portfolio Investments, Acquisition of immovable property, various type of loans, facilities for insurance, education, visa rules, Tax concessions etc. Handbook also covers the facilities available to returning Indians, PIO Cards, list of banks offering ebanking facilities, categories of Visa to India etc. Read More...

DEFINITIONS:

For the purpose of investments in India, a Non Resident Indian (NRI) means a person resident outside India or who is a citizen of India or is a Person of Indian Origin.

NON-RESIDENT INDIAN (NRI)

An Indian citizen or a foreign citizen of Indian origin who stays abroad for employment/carrying on business or vocation or under circumstances indicating an intention for an uncertain duration of stay abroad is a NON-RESIDENT INDIAN ( NRI ). ( Those who stay abroad on business visit, medical treatment, study or such other purposes which do not indicate an intention to stay there for an indefinite period will not be considered as NRIs ).

FOREIGN CITIZEN OF INDIAN ORIGIN

For the purposes of availing of the facilities of opening and maintenance of bank accounts, a foreign citizen (but not a citizen of Pakistan or Bangladesh) is deemed to be of Indian Origin, if he, at any time was an Indian citizen or either of his parents or any of his grandparents was a citizen of India. A spouse (not being a citizen of Pakistan or Bangladesh) of an NRI is also treated as an NRI for the above purposes. For investments in shares/securities in India, a foreign citizen (but not a citizen of Pakistan, Bangladesh or Sri Lanka) is deemed to be of Indian Origin, subject to satisfaction of the other conditions above. For investments in immovable properties, a foreign citizen (but not a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Nepal or Sri Lanka) is deemed to be of Indian Origin, if he, at any time, was an Indian citizen or his father or paternal grandfather was an Indian citizen.

For, these entities sustaining long-term customer relationship management (CRM) has become a challenge with almost everyone in the market with similar products.

OVERSEAS CORPORATE BODY (OCB)

Overseas Corporate Body (OCB) means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least sixty per cent by Non Resident Indians and includes overseas trust in which not less than sixty per cent beneficial interest is held by Non Resident Indians directly or indirectly but irrevocably.