NRI- Non Resident Indian
PIO- Person of Indian Origin
(a) Resident of India :-
PIO- Person of Indian Origin
(a) Resident of India :-
- Citizen of India
- Foreigners for a long term stay in India.
(b) Non- resident of India :-
- NRI/PIO
- Foreigners on a short term visit to India (upto 6 months).
FEMA:-
Foreign Exchange Management Act passed in 1999 & was implemented from 2000.
FEMA definition for NRI:-
- Under FEMA, a NRI is a citizen of India who went abroad for the purpose of
(a) Employement
(b) Study
(c) Business
- They can open bank Account in India without the prior permission of RBI.
- Residents of Pakistan And Bangladesh Needs Prior Permission from RBI.
- NRI/PIO can open NRO saving account with post office.
NRO:- Non Resident Ordinary.
Types Of Accounts For NRI / PIO:-
- NRO
- NRE
- FCNR(B)
- RFC
(i) NRO :- Non Resident Ordinary Rupee Account.
- This account is for the purpose of income earned by NRI/ PIO in INDIA.
- CA/SA/RD/FD are offered.
- The interest rates shall be decided by the bank but it shall not be more than those offered to the Resident of India.
- The amount is deposited in INR & it is repatriable upto 1Million USD per year after payment of Taxes.
- Foreigners on a short term visit to India are offered only NRO accounts.
(ii) NRE Accounts:- Non Resident External Rupee Account.
- This account is for the purpose of income earned by NRI/PIO outside India for transferring to India.
- CA/SA/RD/FD are offered.
- On term deposits upto 1 year interest rates are decided by RBI and for the rest by the Banks.
- The amount is deposited in INR and is Fully repatriable after payment of taxes.
- anks can provide loan facility on such accounts.
(iii) FCNR(B) Accounts:- Foreign Currency Non Resident Bank Account.
- This account can be opened in fully convertible foreign currency.
- RBI has allowed NRI/PIO to open this account in following currency:-
(a) USD
(b) AUSD
(c) CAND
(d) Japanese YEN
(e) Great Britain POUND
(f) EURO.
- Only term deposit of 1-5 years are offered.
- The interest Rates are decided by Banks but, the upper limit is decided by RBI.
- The amount is fully repatriable in the same currency in which it was deposited after payment of Taxes.
- Banks can provide loan against the deposits.
(iv) RFC accounts:- Resident Foreign Currency Accounts.
- This account is for the returning NRI/PIO to India and they can transfer there deposits from NRE & FCNR(B) to this account.
- CA/SA/FD/RD are offered.
ESCROW, NOSTRO & VOSTRO
(i) ESCROW:- It is a separate bank account for keeping money that is the property of others & normally no interest are paid on such accounts.
(ii) NOSTRO:- It is a Bank Account held in a foreign country by a domestic bank dominated in the currency of the foreign country..
(iii) VOSTRO:- It is a bank account held by a domestic bank in its home country for foreign banks.
ARBITRAGE:-
The simultaneous buying and selling of an Assett in order to benefit from the difference in price is called Arbitrage.
No comments:
Post a Comment