The NRE Account is an account that can be started by NRIs in Indian banks.
NRE account may be in the form of savings, current, recurring or fixed deposit accounts (with maturity of minimum one year). Such accounts can be opened only by the NRI himself and not through the holder of the power of attorney.
● NRIs may be permitted to open NRE account with their resident close relatives.
● Account will be maintained in Indian Rupees.
Repatriable: Balances held in the NRE account are freely repatriable.
● Accrued interest income and balances held in NRE accounts are exempt from Income tax and Wealth tax, respectively.
● Authorised dealers/authorised banks may at their discretion/commercial judgement allow for a period of not more than two weeks, overdrawing in NRE savings bank accounts, up to a limit of Rs. 50,000 subject to the condition that such overdrawing together with the interest payable thereon are cleared/repaid within a period of two weeks, out of inward remittances through normal banking channels or by transfer of funds from other NRE/FCNR accounts.
