Loans/Overdrafts Against Security of Non-Resident (Rupee) Fixed Deposits

Loan/overdraft where the depositor himself/herself requests for the advances facilities.

Ordinary non-resident accounts will be converted to resident accounts by banks in India on return of the account holder to India and consequently becoming a legal resident of India.

Third party loan/overdraft facility where the depositor desires that the advance be availed of by another person, whether non-resident or resident.

NRE accounts will also be converted to resident rupee accounts or RFC accounts (if eligible) at the option in of the account holder on the return of the account holder to India and their becoming legal residents in India. In case of NRE fixed deposit, the accounts will continue to earn agreed rate of interest till maturity even after these being converted to resident account.

• Interest rates will be as follows:
  • RFC deposits of 12 months up to 60 months will be charged with the same interest rates as FCNR deposits (no interest will be paid for premature payment before 12 months).
  • To know the current interest rates, click here
• For further details, please contact the Bank of Baroda branch nearest to you.

Premature Withdrawal: Money will be held as term deposits for periods from twelve months up to five years.

Fixed Deposits: Funds may be held in USD and/or GBP currencies.

Convertibility: Funds may be held in USD and/or GBP currencies.

Loans/Overdraft: If the NRI has been abroad for a continuous period of 24 months, hence he will get exemption for subsequent nine years after which he will be known as resident and ordinarily resident in income tax parlance.

During the nine years he will be known as resident but not ordinarily resident and thereby claim income tax exemption on RFC.

Third Party Advances

• Interest rates will be as follows:
  • RFC deposits of 12 months up to 60 months will be charged with the same interest rates as FCNR deposits (no interest will be paid for premature payment before 12 months).
  • To know the current interest rates, click here
• For further details, please contact the Bank of Baroda branch nearest to you.