Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Can funds in NRE/NRO accounts be utilised for payment of air fare to /from/in India of the account holder and/or his dependents?

April 26, 2017account accounts air Fare funds India NRE nro payment utilised

0

Posted

Can funds in NRE/NRO accounts be utilised for payment of air fare to /from/in India of the account holder and/or his dependents?

3 Answers

0

Posted

• Yes. Banks maintaining the accounts have been authorised to permit such payments, Airlines/Shipping companies and their agents have also been permitted to accept payments in rupees from the funds held in NRO/NRE accounts for the purpose. • Are temporary overdrawings permitted in NRO Savings Bank account? • Yes. Authorised dealers may allow such overdrawings up to Rs. 1,000/- subject to the condition that the overdrawings together with the interest payable thereon are cleared within a period of two weeks. • Are NRO/NRE account holders eligible for loans/overdrafts against their fixed deposits? • Yes. except for the purpose of relending, carrying on agricultural/plantation activities or for investment in real estate business. Loans against NRE fixed deposits can, however, be utilised for investments in India on non-repatriation basis, in certain specified areas and for acquisition of flats/houses subject to prescribed conditions. • What are the rates of interest charged on such loans?

0

Posted

Yes. Banks maintaining the accounts have been authorised to permit such payments, Airlines/Shipping companies and their agents have also been permitted to accept payments in rupees from the funds held in NRO/NRE accounts for the purpose.

0

Posted

Ans. Yes. Banks maintaining the accounts have been authorised to permit such payments, Airlines/Shipping companies and their agents have also been permitted to accept payments in rupees from the funds held in NRO/NRE accounts for the purpose.