NRI BANKING

WHAT IS NRI BANKING?

• To meet the specific needs of non-resident Indians related to their remittances, savings, earnings, investments and repatriation, the Government of India introduced in 1970 Non-Resident (External) Account Rules which are governed by the Exchange Control Regulations.

• The Foreign Exchange Management Act, 1999 determines the laws regulating foreign exchange and enlists the various deposit schemes available to Non-Resident Indians.

FIRST LET US SEEE WHAT DO YOU MEAN BY NON RESIDENT INDIAN(NRI) UNDER I.T ACT AnD FERA ACT

MEANING• NRI accounts are maintained by banks which hold authorised

dealers' licences from the Reserve Bank of India. • All NRIs can open such accounts, with the exception of

individuals residing in Pakistan and Bangladesh, who require special permission from the RBI. Joint accounts of two or more non-residents and nomination facility are permitted.

• The total NRE/ FCNR deposits during 2006-2007, as per RBI statistics, are USD 37,751 million and are expected to grow with regional rural banks also mopping up funds. Banks are expected to offer lucrative interest rates to bolster NRI funds.

MEANING OF NON RESIDENT INDIAN(NRI):

UNDER I.T ACT• An Indian Citizen who stays abroad for employment/carrying on

business outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident.

• EXAMPLE: Persons posted in U.N. Organizations and Officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents.

• An individual (whether Indian citizens or not) who is outside India and who comes on a visit to India in any previous year will be treated as "non-resident" in India if he stays in India in that previous year less than 182 days subject to the condition that during the preceding four previous years his stay in India does not amount to 365 days or more.

ROYAL BANK OF SCOTLANDINTRODUCTION

• The Royal Bank of Scotland Group (RBS) is one of the largest financial institutions in the world.

• It is a global business with a range of operations in Europe, North America and Asia Pacific.

• RBS has centres in thirteen European countries, sixteen North American states and eight major Asia Pacific cities.

• RBS is one of the world's leading financial services companies in world.

RANGE OF SERVICES:

HAVE STARTED PROVIDING VARIOUS BANKING SERVICES TO NON RESIDENT INDIANS (NRIs).THE TYPES OF SERVICES PROVIDED BY THE BANK ON THE FOLLOWING ASPECTS ARE AS FOLLOWS:

1.MONEY TRANSFER(REMITTANCE)

The Royal Bank of Scotland N.V. understands your need for a safe and quick channel for money transfer to India. Be it funding your account or sending funds to your loved ones, THEY offer you secure yet cost-effective and convenient options to transfer your money quickly.

The mode of remittance that best suits your requirements:

A. WIRE/TELEGRAPHIC TRANSFER

B.CHEQUE/DEMAND DRAFTS

A.WIRE/TELEGRAPHIC TRANSFER• Here are the simple steps to do a wire/telegraphic transfer:• Select the currency from the list below to download a Wire/Telegraphic

Transfer Remittance Application form.• Fill out the form carefully after reading the instructions.• Take the filled form to your bank and request them to remit the funds to

your RBS N.V. account in India.

List of currencies for wire/telegraphic transfer:• US Dollars (USD)• GB Pound (GBP)• EURO (EUR)• Hong Kong Dollars (HKD)• Australian Dollar (AUD)• Swiss Francs (CHF)

CHEQUE/DEMAND DRAFTS

NRI Service CentreCentralised Operations (Deposits)10 th Floor, Tower C, Cybergreen,DLF Cyber City , Sector 25AGurgaon - 122002Haryana , India.

Please follow the following simple steps:•Print out a Request Letter indicating the account to be credited with The Royal Bank of Scotland N.V. (India), carefully fill out the required details online and sign on the request letter as required (account holder must sign this letter).•Mail the request letter, clearly mentioning the account type and details to which the funds need to be credited, along with your cheque/demand draft to:

•A tailor-made product especially designed to help you effectively manage your income earned outside India. The RBS N.V. NRE Account is designed to empower you and provide you with complete control of your finances from wherever you are.•As part of our privileged RBS NRI Services, your NRE Account will act as a single window to fulfill all your financial needs and the entire gamut of NRI banking services.•Your funds in NRE Savings Account are held in convertible Rupees and are fully repatriable, including the interest you earn. •All interest earned is fully exempted from tax in India and you have a choice of opening the account jointly with another Non Resident Indian.

2.NON RESDIDENT EXTERNALS(NRE) FIXED DEPOSITS:

KEY BENEFEITS:

Power-packed Internet Banking Unlimited Convenience Doorstep Banking Services Online Bill payment International Debit CARD Dedicated Relationship Managers Free e-statements Cheque Protect facility Power of Attorney Free Alerts

TERMS TO OPEN AN ACCOUNT:

• Eligibility• Interest rate• Minimum amount required• Joint account can be opened or not?• Power of attorney• Nominee

HOW TO FUND NRE ACCOUNT?

• Remittance in foreign currency• Deposit cheques• Travelers' cheques• Transferring of funds• Transfer of maturity proceeds

3.NON RESIDENT ORDINARY(NRO) SAVINGS ACCOUNT

All interest earned on this account is repatriable (after deduction of applicable taxes).

NRO Savings Account suits your requirements perfectly to help you manage your finances effortlessly and effectively - the ideal way to route your investments made out of Indian funds and an even greater freedom for your money.Your funds in NRO Savings Accounts are maintained in Indian Rupees.

KEY BENEFEITS:

Power-packed Internet Banking Doorstep Banking Services Online Bill payment Dedicated Relationship Managers Free money transfer

TERMS TO OPEN AN ACCOUNT:

• Eligibility• Interest rate• Minimum amount required• Joint account can be opened or not?• Power of attorney• Nominee

HOW TO FUND NRO ACCOUNT?

• Travelers' cheques• Transferring of funds

4.RESIDENT FOREIGN CURRENCY(RFC) FIXED DEPOSITS

The RBS N.V. RFC Deposit has been especially created for persons of Indian nationality or origin returning to India permanently for settlement, after having been a resident outside India for a continuous period of at least one year.You can choose to maintain your RFC Deposit in any of these three leading international currencies with us - US Dollars , Pound Sterling andEuros .

KEY BENEFITS:

Interest rates Deposit tenures Protection of your funds Tax deducted at source (TDS) exemption Automatic renewal Nomination facility Repatriation

TERMS TO OPEN AN ACCOUNT:

• Eligibility• Currency available• Interest rate• Duration• Minimum amount required• Joint rfc account ?• Utilisation of funds in account

HOW TO FUND AN RFC ACCOUNT?

• TRANSFER OF FUNDS• TRAVELLER’S CHEQUES

REPATRIATION AND TAX BENEFITS:Fully repatriableTax on interest earnedForeign currency riskNominations

FCNR Deposits are maintained in foreign currency and they are completely safe against any exchange rate fluctuations.You can choose to maintain your FCNR Deposit with us in any of these five leading international currencies - US Dollars , Pound Sterling , Euros, Australian Dollars and Canadian Dollars.

5.FOREIGN CURRENCY NON RESIDENT(FCNR) FIXED DEPOSITS

KEY BENEFITS:

Interest rates Deposit tenures Rupee overdraft Withdraw Automatic renewal Joint Account Nomination facility

TERMS TO OPEN AN ACCOUNT?• Eligibility• Currency available• Interest rate• Duration• Minimum amount required• Joint FCNR or not?• Application for FCNR account

REPATRIATION AND TAX BENEFITS:

• Money repatriable or not?• Tax on interest inome earned• Foreign currency risk

BENEFITS OF NRI BANKING:• CONVENIENCE• TIME SAVING• DIVERSIFICATION• INTEREST RATE• CURRENCY HEDGE

THANK YOU