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FEATURES OF VARIOUS DEPOSIT SCHEMES
Banking Awareness is considered to be the high scoring section in any competitive exam. It includes two main portions, current affairs GK and static GK. In this article, we will discuss some really important Banking Awareness topics that are covered in almost all competitive exams. Also, you can download the PDF of lists of different Banking Awareness topics.
In Banking Section, the questions are asked from following topics: History of Banking, banking terms, Marketing of Banking Products, Functions of Banks, Banks and their taglines, schemes, committees related to banking, headquarters of bank, some Banking news related, apps launched by banks, new schemes etc.
In a series of sharing useful study material for upcoming banking exams. Here, we are providing Banking Awareness notes for all banking Exams (IBPS, SBI & Other Banking Exams).
FEATURES OF VARIOUS DEPOSIT SCHEMES AVAILABLE TO NON-RESIDENT INDIANS (NRIs) AT A GLANCE : Banking Awareness Study Notes
| Particulars | Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR(B) Account) | Non-Resident (External)Rupee Account Scheme (NRE Account) | Non-Resident Ordinary Rupee Account Scheme (NRO Account) |
| Who can open an account | NRIs/PIOs/OCIs (individuals / entities of Bangladesh/ Pakistan Nationality/ownership require prior approval of RBI) | NRIs/PIOs/OCIs (individuals / entities of Bangladesh / Pakistan nationality / ownership require prior approval of RBI) | Any person resident outside India (other than a person resident in Nepal and Bhutan). (individuals / entities of Bangladesh / Pakistan nationality / ownership as well as erstwhile OCBs require prior approval of RBI). |
| Joint account | In the names of two or more non-resident individuals. With a resident close relative on ‘former or survivor basis’. | In the names of two or more non-resident individuals.With a resident close relative on ‘former or survivor basis’ | In the names of two or more non-resident individuals. With a resident close relative on ‘former or survivor basis’. |
| Nomination | Permitted | Permitted | Permitted |
| Currency in which account is denominated | Pound Sterling, US Dollar, Jap. Yen, Euro, Canadian Dollar and Australian Dollar. | Indian Rupees | Indian Rupees |
| Repatriability | Repatriable | Repatriable | Not repatriable except for the following in the account – 1) Current income 2) Upto USD 1 Million per financial year (April- March), for any bonafide purpose out of the balances in NRO account / sale proceeds of assets in India acquired by way of inheritance / legacy inclusive of assets acquired out of settlement subject to certain conditions. |
| Type of Account | Term Deposit only | Savings, Current, Recurring, Fixed Deposit | Savings, Current, Recurring, Fixed Deposit |
| Period for fixed deposits | For terms not less than 1 year and not more than 5 years. | Term Deposit-Min 1 yr. Max 10 yrs. | As applicable to resident accounts. |
| Rate of Interest : | Banks are free to determine interest rates for FCNR(B) Deposits. | Banks are free to determine interest rates for NRE Term Deposits. | Banks are free to determine interest rates for term deposits. |
| Tax on Interest Income | Not Taxable | Not Taxable | TDS on Interest earned on NRO deposits to be deducted at 30.90% If the interest amount paid exceeds Rs.10 lacs, TDS will be @ 33.99% However, deduction of TDS is subject to DTAA with many countries. |
| Operations by Power of Attorney in favour of a resident by the non-resident account holder | Operations on the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels. | ||
| Loans : a. In India: i) to the Account holder ii) to Third Parties | Without any monetary ceiling on the loan amount subject to usual margin requirements. | Without any monetary ceiling on the loan amount subject to usual margin requirements. | Permitted Permitted |
| b. Abroad: i) to the Account holder ii) to Third Parties | Without any monetary ceiling on the loan amount subject to usual margin requirements. Not permitted |
Without any monetary ceiling on the loan amount subject to usual margin requirements. | Not Permitted Not Permitted |
| $ Provided no funds are remitted to India and are used only in abroad | |||
| c. Foreign Currency Loans in India: i) to the Account holder ii) to Third Parties | Permitted Not Permitted |
Not Permitted Not Permitted | Not Permitted Not Permitted |
| Purpose of Loan: a. In India i) to the Account holder | i) Personal purposes or for carrying on business activities. * ii) Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms / companies iii) Acquisition of flat / house in India for his own residential use. (Please refer to para 9 of Sch. 2 to FEMA 5) | i) Personal purposes or for carrying on business activities. * ii) Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms / companies iii) Acquisition of flat / house in India for his own residential use. (Please refer to para 6(a) of Sch.1 to FEMA 5) | Personal requirement and / or business purpose * |
| ii) to Third Party | Fund based and / or non-fund based facilities for personal purposes or for carrying on business activities *. (Pl. refer to para 9 of Sch. 2 to FEMA 5). | Fund based and / or non-fund based facilities for personal purposes or for carrying on business activities *. (Please refer to para 6(b) of Sch. 1 to FEMA 5) | Personal requirement and / or business purpose * |
| b. Abroad :To the account holder and Third Party | Fund based and / or non-fund based facilities for bonafide purposes. | Fund based and / or non-fund based facilities for bonafide purposes. | Not permitted. |
Read More:
| 1. | Complete General Knowledge/GS Preparation Bag | Click Here |
| 2. | Static Awareness Preparation Bag | Click Here |
| 3. | English Preparation Bag | Click Here |
| 4. | Banking Awareness Preparation Bag | Click Here |
| 5. | Data Interpretation Preparation Bag | Click Here |
| 6. | Quant Preparation Bag | Click Here |
| 7. | Computer Awareness Preparation Bag | Click Here |
| 8. | Reasoning Preparation Bag | Click Here |
| 9. | Daily Current Affairs | Click Here |
| 10. | Monthly Current Affairs PDF | Click Here |
| 11. | Daily Current Affairs Quiz | Click Here |
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