What Are The Features Of An NRE Account?

[Shashank Bhaskar]

A Non-Resident External account allows the transfer or conversion of Indian currency across borders effectively. Many NRIs who stay in foreign countries can easily send money to India using this account. The primary advantage here is that the currency converts to Indian Rupee upon reaching India. It helps your family in financial need.

An NRE account has user and finance friendly features that help families access it without any difficulties. You can open the account, withdraw funds, and access its features for better control over finances in a foreign and home country.

1. The account operates in Indian Rupees
2. The amounts deposited get repatriated to borders across India
3. Only a Non-Resident Indian (NRI) and the joint holders who can be NRIs or Persons of Indian Origin (PIO) are eligible to open this account
4. All kinds of Indian currencies and some acceptable foreign currencies are allowed to get deposited when the NRI visits India. You can also deposit through foreign exchange transfer abroad using FCNR or NRE
5. You can apply for loans in foreign countries
6. The interest received on the deposits in the NRE bank account has no tax charges
7. A power of attorney has limited access to functions such as money withdrawal and remit of funds across the border to reach the account holder
8. FEMA regulates credit and debit flow within the account by having a set of permissions for transfer types to and from it
9. According to the NRE account rules, deposits of foreign currencies in the form of cheques, banking channels, foreign exchange by the account holder during the visit to India, and transfers from other banking accounts is also allowed. Apart from these credits, the money earned through government bonds, mutual funds, etc., can also get deposited.
10. Debits from the External Rupee account are subject to general permission to invest in shares, mutual funds, transfers to other remittance accounts, outward remits, etc.
11. As an account holder, you can apply for loans in foreign as well as Indian banks, and the permissible limit is relatively high compared to other accounts
12. The balances in the account are available for transfer to other NRIs
13. The facilities available include payments of utility bills, chequebooks, international credit cards, and much more

You can open an NRE account for easy repatriation, and transfer of income earned in foreign currency converted to Indian currency. You can maintain funds earned from India, like income from the financial market and real estate investments. During emergencies, you can access the account and withdraw money from it using an international debit card.