Terms & Conditions

• The minimum deposit amount: is USD 10000/- or its equivalent.
  
  
• NRI's can open this account by Inward remittances in any convertible currency from abroad through normal banking channels by way of
  
  
  • Demand drafts
  • Telegraphic Transfers
  • Telex
  • Mail Transfers
  • SWIFT
  • Foreign Currency
  • Foreign Travellers cheques (during their personal visit) as well as transfer from any non-resident (External) Rupee Savings & Fixed Deposit account or Foreign Currency Non Resident deposit accounts of any NRI on maturity.
    However local Rupee cheques and Cash Currency in Indian Rupees cannot be deposited in this account.
    
    
• The remittance received from abroad is converted into Rupees and placed in NRE Rupee Deposit for 12 months. The customer is required to book forward contract for the maturity amount on the date of deposit itself.
  
  
• The effective yield to the customer will be the difference between the Rate of Interest on NRE Rupee deposits and the Forward Premium prevailing on the date of effecting the transaction.
  
  
• The deposit is subject to the Rules framed by the Reserve Bank of India.
  
  
• Deposit Receipts are not transferable by endorsement.
  
  
• Deposit Receipts will, when so required, be issued in the names of two or more persons and be made payable to any one or more of them or to any one or more of the survivors of them or the last survivor. However, all the persons must be Indians resident abroad or persons of Indian origin, resident abroad.
  
  
• Deposit will be accepted for period of 12 months only. In case of premature withdrawal of the deposit receipt, the receipt needs to be signed by all the depositors irrespective of the operational instructions "Either or Survivor", or "Anyone or Survivors/Survivor".
  
  
• Interest on deposits will be paid on maturity along with the principal. No interest will be payable for deposits run for less than twelve months. For current interest rates on deposits click here

For better understanding of the product, we give below an example:

1. Amount of Deposit : USD 10000.00
   
   
2. Period : 12 months
   
   
3. Interest Rate on NRE Rupee deposits : say 2.50%
   
   
4. Conversion rate on the date of transaction : say Rs.46.00
   
   
5. Amount of deposit in Rupees will be Rs 4,60,000.00
   
   
6. Maturity value in Rupees will be Rs. 471608.00 (interest compounded quarterly)
   
   
7. Customer has to book forward contract for the maturity value on the date of deposit.
   
   
8. Assuming the forward rate is 46.415 (forward premium at 0.90%) as on the date of transaction, the Maturity value in USD will be USD 10160.68.
   
   
9. Thus the effective interest rate will be 1.61%.