| Eligibility | Any non-resident individual of Indian nationality |
| Minor | The deposit can be opened in the name of minor also |
| Joint Deposit | Fixed Deposit can be opened in single or joint name but the tax benefit can be claimed only by the first account holder |
| Min / Max Amount | Minimum Rs. 100.00 and thereafter in multiples of Rs. 100.00 subject to a maximum of Rs. 1,50,000.00. |
| Period | 5 ~ 10 Years |
| Lock In Period | 5 Years |
| Interest | Monthly interest, quarterly interest, half-yearly interest (quarterly compounded), annual interest (quarterly compounded) - based on investor needs |
| Taxation | Interest earned on NRO Savings Account / NRO Fixed Deposit is subject to tax deduction at source*. With effect from August, 2009, applicable TDS rates are :
As per section 206AA introduced by Finance (No. 2) Act, 2009 with effect from 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN Number to the deductor, failing which TDS shall be deducted at the maximum marginal rate or 30.90% Taxation whichever is higher.
The interest on NRO Accounts / Deposits and PIS transactions would be covered by the said rule. * TDS, when due and applicable will be deducted in accordance with the provisions of the Income Tax Act, 1961 and the Rules there as in force. Such TDS shall be recovered from saving/current/demand deposit a/c(s).
Double Taxation Avoidance Agreement (DTAA) is an agreement entered by India with various countries. Under the current DTAA provisions, NRI can enjoy concessional rate of Tax Deducted at Source (TDS). As per the recent amendment to the Indian Income Tax Act as announced in Union Budget 2012, NRIs who wish to avail DTAA benefit have to mandatorily provide "Tax Residency Certificate (TRC)" to the deductor (Bank). This is applicable for all NR customers who wish to avail DTAA benefit with effect from 1st April 2012.
If an NRI is desirous of availing the tax rate deduction as per the DTAA, the same will be applicable once he/she submits the relevant documents along with his /her PAN Number. Please note that PAN updation is mandatory to avail of DTAA.
A fresh tax declaration has to be submitted to the bank upon the expiry of the period for which DTAA rate is being applied for the NRO deposits. The DTAA rate will be applicable for the period mentioned on the Tax Residency Certificate (TRC). |
| Premature Closure | Premature Closure is NOT allowed during lock in period |
| Deposit Receipt | Deposit Receipt will be issued with the depositor's / assesse's name, address, PAN and his / her signature. It will be governed by the "Bank Term Deposit Scheme", 2006 of the Government of India Notification No. 203 / 2006 dated Jul 28, 2006 or its subsequent amendments |
| Transfer | The deposit is not transferable. However, the deposits are transferable from one branch to another branch in the same name(s) |
| KYC Compliance | Usual KYC compliance as applicable to term deposits |
| Nomination | Nomination facility is available. In the event of the death of the depositor the nominee can encash either before or after the maturity date |
| Payment to Legal heirs | If no nomination is in force at the time of death of the depositor, Manager of the branch shall pay the sum due to the deceased to his legal heir's as per Banks usual procedure |
| Rate of Interest | Rate of Interest as applicable for NRO Term Deposits |
| Loan against Deposit | Not allowed during lock-in period. (The term deposit shall not be pledged to secure loan or as security to any other asset during Lock in period) |
| Relaxation | Any relaxation in the scheme will be allowed as per the Notification issued by the Central Government from time to time |
