What are the different types of rupee accounts permitted to be maintained by Non Resident Indian?
Ans. Two types of rupee accounts viz. Non resident (external) Rupee Accounts (NRE) and Ordinary Non-Resident Rupee Accounts (NRO) are permitted to be maintained by NRIs. Funds in NRE Account are repatriable. Q.Can proceeds of foreign currency notes/travelers cheques be credited to NRE accounts without any restriction? Ans. Authorised dealers have been permitted to credit the proceeds of foreign currency notes/travelers cheques brought by the account holder from abroad during his visit to India provided they are tendered in person. Where the amount of foreign currency notes tendered exceeds U.S.$5000 or its equivalent or the total amount of currency notes and travelers cheques tendered for credit to NRE accounts exceeds US $ 10,000 or its equivalent, it should have been declared to the Customs on the Currency Declaration Form (CDF) at the time of the account holder’s arrival in India. Q. Can an NRI authorise a close relative to operate his NRE account? Yes, by giving a Letter of Authori
