Submitted by csb1234bank on Wed, 02/10/2016 - 14:58
Non-Resident Ordinary Accounts (NRO Accounts)
CSB NRO Deposit Scheme
The Scheme for depositing Rupee funds earned in India while being an NRI
SINGLE / JOINT A/Cs
Permitted with NRIs/Residents
Current/Savings/Recurring/Fixed Deposits/Family Welfare Deposits/Cumulative
- Remittance outside India of current income like rent, dividend, pension, interest etc. in India of the account holder
- Remittance up to USD one million, per financial year (April-March), by NRI, subject to payment of tax, as applicable
- Transfer to NRE account of NRI within the overall ceiling of USD one million per financial year (April-March), subject to payment of tax, as applicable
- Interest earnings are subject to deduction of income tax at source
- Tax discounts on NRO deposits, as applicable under Double Taxation Avoidance Agreement (DTAA)
- Deposits are exempt from Wealth Tax
Other Important Features:
- Interest is not payable for this account
- Amount representing legitimate earnings in India can be deposited without restriction, in addition to foreign inward remittances
- No restriction on cash withdrawal/local payments.
- Interest rate and period of NRO term deposits as applicable for domestic term deposits
- Interest earned on deposit is credited after TDS and surcharge, if any, as applicable from time to time.
- The account can be used for all local payments in rupees, including payment for passage from India of the account holder or his dependents
- Nomination can be in favour of a Non-Resident/ Resident.
- Loans can be availed against security of term deposits.
- NRE Family Welfare Deposits: This is a reinvestment deposit scheme meant for NRIs. All other features are similar to NRE Fixed deposits described here.
- NRE Cumulative Deposit Accounts: This is a recurring deposit scheme meant for NRIs that enables the depositor to build up a sizeable corpus in a regular/ systematic manner. These accounts can be opened for a minimum period of 12 months and for a maximum period of up to 10 years. Deposits from this scheme are held in convertible Rupees and the principal and interest amounts are repatriable without any restrictions.