NRE term deposit

POSTED BY investngrow ON December 28, 2011 3:28 pm COMMENTS (6)

Hello Investors,

I have a query regarding NRE term deposit. I have a NRI status and will be visiting India next week. I do not hold any a/c in India and have planned to open a NRE & NRO a/c during my visit to India.

As most of the banks have revised attractive rates on NRE deposits, I want to create some NRE term deposits. As I currently do not hold any a/c in India I want to first transfer the money to my relatives and then with the transfer proof create NRE term deposit. Will the banks accept this as a proof?

As far as my understanding is, only the transfers from NRE/ NRO a/c, traveller cheque, foreign currency cash (with certain limits) are accepted for the deposits.

I will be visiting India next week, so I have to advice my local bank regarding the transfer before I leave.

Could experts throw some light on this?

Regards,
Investngrow

6 replies on this article “NRE term deposit”

  1. Dear Investngrow, Please keep posting your queries & updates here in this forum.

    thanks

    Ashal

  2. investngrow says:

    Thankyou Vinay & Ashal, I will postpone my remittance & will open an NRE a/c only in the bank which has online NRE term deposit facility.

  3. Dear Investngrow, in the NRE account, the money can be deposited from a wired transfer outside India only. Please keep this thing in mind & accordingly, do not try to hurry up. During your india visit, Open NRE account in a bank which is oeering online abnking facility also to you. Please do check that online Term deposit facility is also there. Once it’s done, you may transfer amount to this NRE account & may create term deposits yourself.

    Thanks

    Ashal

  4. Vinay Maithani says:

    Then in that case try to open an NRE account in any public bank through any of their foreign branches.

  5. investngrow says:

    Vinay, thank you for your reply. The problem is I want to initiate the transfer from my residing country before I go to India, I have restriction from my local bank, any amount more then 3k€ can not be transferred online, I have to go to the branch and initiate the transfer 🙁

  6. Vinay Maithani says:

    I am a NRE myself and have done following things so far.

    Visit India and Open a NRE account in the Bank. You would need a reference in the branch or any document which Bank would like to see as a proof of ‘good’ individual.

    Then you can transfer amount to the same NRE account using Remit2India website or any other remittance method you feel economical.

    Once funds are present in NRE account then you can open an NRE deposit in the same branch/bank.

    Hopefully this process would take max 1-3 days. I heard that only SBI has made NRE deposit rates sound tempting 🙂

    Regards
    Vinay

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