These accounts can be opened only by persons who are Non Resident Indians. The NRI can open either a savings account with a bank or could make fixed deposits. A special feature of investments by the Non Resident Indians either in NRI bank account or in NRI fixed deposits is that the entire income is completely tax free under section 10(4) of the IT act. These accounts could also be opened under a separate account head know as FCNR Account. It is worthwhile to note that the deposits in all these accounts have to come out of remittances of foreign exchange from abroad. For further details and the terms of opening an NRI account, one should contact the nearest branch of any bank. Most banks in most of their branches have the facility of opening of NRI Accounts. For latest rate of interest on NRE Bank Account contact any branch of a bank in your area.
Foreign Currency Non Resident Accounts can be opened only by Non Resident Indians. Money in such bank accounts can be deposited only from foreign remittance in convertible foreign exchange. The bank interest from these accounts is also completely exempted from income tax. Likewise, the entire bank balance in these accounts is free from wealth tax without any upper limit. The big advantage of FCNR account is always maintained in foreign currency and if there is fluctuation in the price of the foreign currency, the account holder does not stand to lose.
Please contact your nearest bank to enquire about the rates interest rates on NRI Bank Accounts and also on fixed deposits by NRI.