Canara Bank

NON RESIDENT EXTERNAL RUPEE ACCOUNT(NRE)

Types of account you can open are: Savings, Current or Term Deposit in Indian Rupees.
You can open a NRE account by:
1. Remittance from abroad (through DD/SWIFT TRANSFER)
2. Transfer of funds from existing NRE/FCNR accounts with other banks in India or from other branches of our bank.
3. Foreign currency notes/travellers cheques brought in during temporary visit to India.
4. Personal cheques drawn on your account abroad
Unique features of NRE deposits:
1. The entire credit balance inclusive of interest earned can be repatriated outside India without reference to RBI.
2. NRE accounts can be operated by Resident Indians on the basis of the Power of Attorney Or letter of Authority issued by the NRI account holder. However PA/LA holder can repatriate the funds abroad to the non resident depositor only.
3. Joint accounts can be opened in the name of two or more Non Resident Individuals with a maximum of 4 persons.
4. NRI also can open Joint account with a close Relative and such close relative cannot operate the joint account.
5. Sale/Maturity Proceeds/ repurchase proceeds of units of UTI, Securities or certificates originally purchased out of funds in these accounts can be credited without reference to RBI.
6. Under term deposits accounts can be opened for a minimum period of 1 year and a maximum period of 3 years.
7. Under term deposits accounts can be opened for a minimum period of 1 year and a maximum period of 10 years.
8. In respect of closure before maturity of NRE Term Deposit, 1% penal cut is imposed. A deposit closed before maturity without completing the minimum period of 1 year shall not earn any interest for the period run.

NON-RESIDENT (External) RUPEE ACCOUNT SCHEME (NRE Account)

Who can open an account	NRIs (Individuals of Bangladesh/Pakistan nationality require prior approval of RBI)
Joint account	In the names of two or more non-resident individuals Subject to a maximum of 4 persons
Joint account with Resident	Only with a Close Relative and such Close Relative cannot operate the account.
Nomination	Permitted
Currency in which account is denominated	Indian Rupees
Repatriability	Repatriable
Type of Account	Savings, Current, Recurring, Fixed Deposit
Period for fixed deposits	Minimum one year and maximum 3 years.
Rate of Interest Before Maturity Closure of NRE Term Deposit	The interest rates are displayed on our web site (click) Permitted subject to imposing 1% penal cut. If closed before completion of 1 year, no interest shall be paid for the period run.
Loans
a) In India	Permitted
(i) to the Account holder	Permitted
(ii) to third parties	Permitted
b) Abroad >
(i) to the Account holder	Permitted
(ii) to third parties	Permitted
c) Foreign Currency Loans In India
(i) to the account holder	Not permitted
(ii) to third parties	Not permitted
Purpose of Loan
a) In India
(i) to the Account holder	i)Personal purposes or for carrying on business activities * ii) Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms/ companies iii) Acquisition of flat/ house in India for his own residential use
(ii) to third party	Fund based and/or non-fund based facilities for personal purposes or for carrying on business activities.
b) Abroad
To the account holder and third party	Fund based and/or non-fund based facilities for bonafide purposes.

* The loans cannot be utilized for the purpose of relending, or carrying on agriculture or plantation activities or for investment in real estate business.

Note:

a) When a person resident in India leaves India for Nepal and Bhutan for taking up employment or for carrying on business or vocation or for any other purposes indicating his intention to stay in Nepal and Bhutan for an uncertain period, his existing account will continue as a resident account. Such account will not be designated as Non-resident (Ordinary) Rupee Account (NRO).

b) We open and maintain NRE/FCNR(B) accounts of persons resident in Nepal and Bhutan who are citizens of India or of Indian origin, provided the funds for opening these accounts are remitted in free foreign exchange. Interest earned in NRE/FCNR (B) accounts can be remitted only in Indian rupees to NRIs and PIO resident in Nepal and Bhutan.

c) We extend all types of rupee loans under the “Retail lending scheme” to NRI’s