Are temporary overdrawings permitted in NRO / NRE Savings Bank accounts ?
Ans. Yes. Authorised dealer may allow such overdrawings upto Rs. 50,000 subject to the condition that the overdrawings together with the interest payable thereon are cleared within a period of two weeks either by way of remittances from abroad or out of legitimate funds of the account holder or transfer from his NRE / FCNR accounts. However, authorised dealers may exercise their own discretion / commercial judgement while allowing overdraft under this provision.
