Interest earned as well as the principal amount is repatriable freely and can be
remitted abroad in the currency of depositor's choice. These funds can also be credited to NRE SB
A/c after conversion into Indian Rupees and the balances in NRE account are also repatriable
abroad.
If FCNR (B) deposits are withdrawn prematurely within the deposit period of 1
year, no interest is payable. Premature withdrawals after 1 year (if deposits placed for longer
periods) will be subject to penal interest of 1% below the rate applicable for the period the
deposit has remained with the bank.
Loans & overdrafts can be availed against the securtiy of NRE deposits for
business purposes or personal use. Such loans should not be used for the purpose of investment in
India or for re-lending or for investment in farm houses / Real Estate.
Power of Attorney can be given to Residents to renew the accounts on
maturity.
Power of Attorney holder cannot
Open an account
Remit funds abroad except only to the non resident account. Remittance in
favour of account holder is permitted provided specific power have been given in the Power of
Attorney.