NRI BUSINESS

NRI customers are very important for Bank for resource mobilization and pitching retail asset products as well as
wealth management products.

Non-Resident Indian (NRI)

NRI for this purpose is defined in Regulation 2 of Notification No. FEMA 5/ 2000- RB dated May 3, 2000. In terms
of this Notification, an NRI means a person resident outside India who is a citizen of India or is a person of
Indian origin.

Person of Indian Origin (PIO)

A ‘Person of Indian Origin (PIO)’ is a person resident outside India who is a citizen of any country other than
Bangladesh or Pakistan or such other country as may be specified by the Central Government, satisfying the
following conditions:
a) Who was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955);or
b) Who belonged to a territory that became part of India after the 15th day of August, 1947; or
c) Who is a child or a grandchild or a great grandchild of a citizen of India or of a person referred to in (a) or (b); or
d) Who is a spouse of foreign origin of a citizen of India or spouse of foreign origin of a person referred to in clause
(a) or (b) or (c)

A PIO will include an ‘Overseas Citizen of India’ cardholder within the meaning of Section 7(A) of the Citizenship
Act, 1955. Such an OCI Card holder should also be a person resident outside India.

Indian Students studying abroad

In terms of FEMA regulations Indian students studying abroad can be treated as Non-Resident Indians having regard
to the circumstances stated as under
i) their stay abroad for more than 182 days in the preceding financial year and
ii) their intention to stay outside India for an uncertain period when they go abroad for their studies. Accordingly,
students going abroad for studies are treated as Non - Resident Indians and are eligible for all the facilities available
to NRI under FEMA.

Persons of following categories will not be considered as NRI:

1. Indians who go abroad for the purpose of
 Tourism
 Pursuing research
 Undertaking business promotion visits.
 To receive training
 Obtaining medical treatment.
 Participating in sports or cultural activities.
2. Indians or Persons of Indian origin residing in Nepal/Bhutan /Pakistan/Bangladesh.
3. Crew members working for shipping/airlines companies posted in India and those companies whose registered
offices are in India.

NON-RESIDENT (EXTERNAL) ACCOUNT SCHEME (NRE ACCOUNT)

Deposit plan for NRI’s savings/earnings from abroad

Features of NRE Deposit in INR: Current / Saving / Term Deposit Accounts

Eligibility: Any NRI/PIO as per guideline

Eligible Credits:
Proceeds of remittance from Overseas to India/From other NRE,FCNR (B).
Transfer from NRO A/C (USD one million per financial year subject to deduction of applicable tax)
Permitted Debits:
Local Payments,
Remittances outside India,
Transfer to NRE / FCNR(B)Accounts of the account holder or any other person eligible to maintain such account
Investment in Shares / Securities of an Indian Company or for purchase of Immovable Property in India provided
such investment / purchase is covered by the regulations made, or the general / special permission granted, by the
RBI, any other transaction if covered under general or special permission granted by RBI.

NRE RUPEE FD:

Tenure of Time Deposit: Min. 1 Year; Max. 10 Year
Repatriability: Fully Repatriable (Principal plus interest amount)

Joint Accounts:
Allowed with other NRI. Resident close relative may also become joint account holder with operational instructions
Former or Survivor.

Loan against Term Deposit:

Up to 95% of value of Term Deposit.

Tax Exemption:
Interest income on balances standing to the credit of NRE / FCNR (B) Accounts is exempt from Income Tax.
Likewise, balances held in such accounts are exempt from Wealth Tax.

Change of resident status of the account holder:

NRE accounts should be re-designated as resident accounts or the funds held in these accounts may be transferred to
the RFC accounts (if the account holder is eligible for maintaining RFC account) at the option of the account holder
immediately upon the return of the account holder to India for taking up employment or for carrying on business or
vocation or for any other purpose indicating intention to stay in India for an uncertain period. Where the account
holder is only on a short visit to India, the account may continue to be treated as NRE account even his stay in India

BARODA PREMIUM NRE SB ACCOUNT

A premium saving bank account specially designed for valued NRI customers.
Average quarterly balance required to be maintained is ₹ 50,000
Free remittance facility if beneficiary maintains account at any of branch in India
Free DD, BCH, Cheque Book, Baroda Connect, Safe Custody, preferential exchange rate, locker facility (Only
Preferential allotment of Lockers)
Interest and principal fully repatriable
Tax exemption on interest earned
Joint account with residents: former or survivor

NON-RESIDENT (ORDINARY) RUPEE ACCOUNTS (NRO ACCOUNTS)

Deposit plan for your savings/earnings in India.

Feature of NRO A/Cs in INR:

Current/Saving/Term Deposit Accounts

Eligibility: Any NRI/PIO as per guideline

Opening of accounts by individuals/ entities of Pakistan nationality/ ownership and entities of Bangladesh ownership
requires prior approval of the Reserve Bank.

NRO Term Deposit: For period 7 days to 10 years

Opening of accounts by individual/s of Bangladesh nationality may be allowed by Authorized Dealer or Authorized
Bank, subject to satisfying itself that the individual/ s hold a valid visa and valid residential permit issued by
Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned.
Eligible Credits:
Proceeds of remittances from outside India through normal banking channels received in any permitted currency.
Any foreign currency, which is freely convertible, tendered by the account holder during his temporary visit to
India. Foreign currency exceeding USD 5000 or its equivalent in the form of cash should be supported by currency
declaration form. Rupee funds should be supported by encashment certificate, if they represent funds brought from
outside India.
Transfers from rupee accounts of non-resident banks.
Legitimate dues in India of the account holder. This includes current income like rent, dividend, pension, interest,
etc.
Sale proceeds of assets including immovable property acquired out of rupee / foreign currency funds or by way of
legacy /inheritance.
Resident individual may make a rupee gift to a NRI/PIO who is a close relative of the resident individual [close
relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque /electronic transfer. The
amount shall be credited to the Non-Resident (Ordinary) Rupee Account (NRO) a/c of the NRI / PIO and credit of
such gift amount may be treated as an eligible credit to NRO a/c. The gift amount would be within the overall limit
prescribed under the Liberalized Remittance Scheme (LRS) for a resident individual.

Permitted Debits:
All local payments in rupees including payments for investments in India subject to compliance with the relevant
regulations made by the Reserve Bank
Remittance outside India of current income like rent, dividend, pension, interest, etc. in India of the account
holder.
Remittance up to USD one million, per financial year (April- March), by NRI, subject to payment of tax, as
applicable.
Transfer to NRE account of NRI within the overall ceiling of USD one million per financial year subject to
payment of tax, as applicable

Repatriability: Rapatriable up to USD 1 million per financial year out of balance held in A/c. subject to payments
of tax and production of C.A. certificate i.e. Form 15CA and Form 15 CB as per applicability

Loan Against Term Deposit: Permitted without any limit (As per Advance value of the deposit)
Joint Accounts: Allowed with other NRIs and local residents also. As per the new guidelines of RBI, operational
instruction with Local residents will be Former or Survivor.

Tax: TDS is levied on interest earned, Concession if any is subject to double tax avoidance agreement
(DTAA)with certain countries.
Other Facilities: International Debit Card, Internet Banking (Baroda Connect), Account operation allowed for
local payments through Power of Attorney.

FCNR (B) TIME DEPOSIT

Deposit plan in Foreign Currency for your savings/earnings from abroad
Term Deposit accounts in USD, GBP, EUR, JPY, CAD, AUD.

Eligibility: Any NRI (except Bangladesh/Pakistan nationality which requires RBI prior approval)
Eligible Credits: Proceeds of remittance from overseas to India in foreign currency, transfer from NRE a/c and
conversion in foreign currency.
Tenure of Deposit: Min. 1 Year to Max. 5 Years
Repatriability: Fully Repatriable
Joint Accounts: Allowed with other NRI. Resident close relative may also become joint account holder with
operational instruction ‘Former or Survivor’
Loan Against Term Deposit: Up to any amount subject to advance value of Term Deposit
RUPEE LINKED FOREIGN CURRENCY DEPOSIT (RLFCD)

FCNR Deposit with Forward Exchange cover for conversion to INR at maturity for improving YIELD by leveraging
the exchange rate difference between INR and foreign currency in Spot and Forward market.

Currency:
In any of the six denominated foreign currencies: USD, GBP, EUR, YEN, CAD, AUD
Tenure:
For period 1 year with Forward Exchange Cover booked for conversion to INR at maturity.
Minimum amount of deposit is USD 10,000 or its equivalent. No maximum amount of deposit
Period of deposit is one year fixed
Applicable rate of interest: same as the rate given under FCNR (B) deposit for the period of one year in
respective currency
A forward contract of one year is booked at the time of opening the deposit account on the principal amount to
enhance the yield out of the forward premium in order to protect the depositors from exchange risk
On maturity, the deposit will be converted in to INR at the contracted rate and will be credited to NRE saving
account or as per depositor instruction. Interest amount will be converted in to INR at the exchange rate prevailing
on maturity date.
Principal& Interest Fully Exempt from Income tax in India

FOREIGN CURRENCY LINKED RUPEE DEPOSITS (FCLR) SCHEME:

This deposit plan offers the dual advantage and benefits of both NRE Rupee Deposits and FCNR Deposits. Moreover,
since the maturity value is determined in foreign currency at the time of application, the risk of losing money due to a
fall in the exchange rate is eliminated.

 The minimum deposit amount: is USD 10000/- or its equivalent.

 The remittance received from abroad is converted into Rupees and placed in NRE Rupee Term Deposit for 12
months.
 The customer is required to book forward contract for the maturity amount on the date of deposit itself.
 The effective yield to the customer will be the difference between the Rate of Interest on NRE Rupee deposits
and the Forward Premium prevailing on the date of effecting the transaction.
 The deposit is subject to the Rules framed by the Reserve Bank of India. Deposit Receipts are not transferable
by endorsement.
 Deposit Receipts will, when so required, be issued in the names of two or more persons and be made payable
to any one or more of them or to any one or more of the survivors of them or the last survivor. However, all
the persons must be Indians resident abroad or persons of Indian origin, resident abroad.
 Deposit will be accepted for period of 12 months only. In case of premature withdrawal of the deposit receipt,
the receipt needs to be signed by all the depositors irrespective of the operational instructions "Either or
Survivor", or "Anyone or Survivors/Survivor".
 Interest on deposits will be paid on maturity along with the principal. No interest will be payable for deposits
run for less than twelve months.

RESIDENT FOREIGN CURRENCY ACCOUNT

For NRIs returning to India for settling in India Our Bank offers remunerative deposits for NRIs returning to India
with the intention of permanently settling down. NRIs can also open RFC account with the ASSETS brought by
them on return as well as their foreign assets held abroad at any future date in case they desire so. Their present NRI
accounts will be re classified and called RFC accounts while the continuity of the deposit will be maintained till
maturity date of the deposit.

EXCHANGE EARNERS’ FOREIGN CURRENCY (EEFC) ACCOUNTS

1. All categories of foreign exchange earners are allowed to open and to credit up to 100 per cent of their foreign
exchange earnings to their EEFC Accounts with authorized dealers in India subject to the condition that the sum total
of the accruals in the account during a calendar month should be converted into rupees on or before the last day of
the succeeding calendar month. This account shall be maintained only in the form of non-interest bearing current
account. No credit facilities, either fund-based or non-fund based, shall be permitted against the security of balances
held in EEFC accounts by the AD Category – I banks

2. Funds held in EEFC account can be utilized for all permissible current account transactions and also for approved
capital account transactions as specified by the extant Rules/Regulations/ Notifications/ Directives issued by the
Government/RBI from time to time.

RFC (DOMESTIC) ACCOUNT

1. A person resident in India can open, hold and maintain with an authorized dealer in India, a Resident Foreign
Currency (Domestic) Account, out of foreign exchange acquired in the form of currency notes, Bank notes and
travellers cheques from any of the sources like, payment for services rendered abroad, as honorarium, gift, services
rendered in settlement of any lawful obligation from any person not resident in India proceeds of export of goods
and/or services, royalty, honorarium, etc., gifts received from close relatives (as defined in the Companies Act) and
repatriated to India through normal banking channels by resident individuals. Also, the unspent portion of foreign
exchange availed for travelling purpose can be credited in this account for use in subsequent travels abroad.
2. The account shall be maintained in the form of Current Account and shall not bear any interest. There is no ceiling
on the balances in the account.