NRE account: what is it?
NRE stands for Non-Resident External Account where transactions take place in rupee only. The funds in this account are maintained in Indian rupees only. Any interest on this account is subjected to total tax-exemption. An NRE account can only be allowed to be functional provided the account is jointly opened with other NRI’s.
Types of NRE accounts of State Bank of India:
Mainly the type of NRE accounts that are functional in the State Bank India is:
Savings Bank/ Current Account/Term Deposit/Special Term Deposit/Recurring Deposit.
The underlying principle to open an account is that they can only be opened jointly with other NRI’s.
Some information about NRE Savings Bank A/C
This account is only designed for the use of nonresident Indians or (NRIs). The account can be operated by two people in a joint account mode. In case the joint account holder is your spouse, she or he should also be an NRI. The account must have a minimum balance of Rs 1000. You can get other basic NRE Account information here.
Features of NRE Savings Bank A/C: it can receive
- Sources of credit
- Payment and remittances from abroad through banks.
- Transfer of credit from a different NRE account.
- Bank drafts issued by banking institutions or companies based abroad.
- Cheques of individually drawn on foreign accounts.
- Interest or Dividend or Maturity amounts of any kind through an investment that was put to effect in India on a repatriable basis.
- All proceeds of Foreign Currency Notes/Traveller's cheque tendered by NRI.
How to open an NRE account and what services are provided by SBI in this regard?
The first thing required to be done for opening an NRE account in State Bank of India is to print and fill this account opening form. Then the form must be properly filled and send to any branch of SBI where a person would like to have an account of his own. The form must be attached to the following essential things:
- Two self-attested passports sized photographs.
- Passport & residence visa/ Copies of ID card attested by Banker/Notary Public/Indian Embassy/ a person who is familiar to the bank.
- Initial remittance
- Signature in the form must be verified by either Indian Embassy/Consulate/High Commissioner or Notary Public, or someone is known to the bank, etc.
- Xerox copies of any two of the following: Copy of Telephone/Electric Bill, Cheque drawn on bank account abroad, etc.
Where can you go to open the account?
Well, Good news of us is that there is a local branch in Fremont that can help with all your transactions.
39148 Paseo Padre Parkway Fremont, CA 94538-1612