to Non-resident Indians (NRIs) and what are their features?
NRIs can have both foreign currency and rupee deposits with banks. The foreign currency deposits are FCNR (B) Account [Foreign Currency Non-Resident (Bank)] Account. Such deposits can be opened in Foreign currencies, such as, USD, GBP, Euro and Japanese Yen. These are term deposits for term ranging from 1 to 3 years, carrying market determined interest rates and offer the facility of full repatriation to the depositor on maturiy. NRI rupee deposit schemes are NRE [Non-Resident (External)] Rupee Account, which is repatriable and NRO Account [Non-Resident Ordinary Account], which is non-repatriable. These can be opened as Savings, recurring, current accounts and term deposits. Current accounts do not carry any interest. Other deposits carry interest as determined by Banks. The interest is repatriable in both NRE and NRO accounts. • Can NRIs invest their funds in Government securities or Units of Unit Trust of India (UTI)? Yes. In terms of the regulations framed under the Foreign Exchange
