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Indian Banks and Interest rates
Since January 1, 2007 many Indian banks have hiked the interest rates on NRE fixed deposits and FCNR. While you can find great deal of information online regarding various bank account types, here is a quick list of types of accounts and their definitions.
NRI Info
Non Resident Indians (NRIs) can own several accounts.1. Non Resident External (NRE) - account is maintained in Indian Rupees.
2. Foreign Currency Non Resident (FCNR) -account with repatriation rights and is maintained in foreign currencies.
3. Non Resident Non Repatriable (NRNR) - account which was available earlier was without repatriation rights and used to earn higher rate of interest.
The interest is tax-free in India as long as the account holders remain an NRI.
4. Non-Resident Ordinary (NRO) is the non-repatriable account that NRIs can maintain. This is similar to the savings bank account that Residents have. The NRO account enables handling investments and income arising out of Indian sources before the account holder became an NRI and also the non-repatriable income.
