SBI NRE Account Online Opening Application Form, Process, Interest Rates, Benefits

In this article you will find in depth information related to SBI NRE Account such as account opening process, features & benefits, Interest rates, eligibility, withdrawal, fund transfers etc.

The full form of NRE account is NON Resident External. This account is helpful in sending money earned abroad to India. This account can also be Saving, Current or Recurring deposit account. Apart from the account holder, this type of NRI account can also be run by a local Indian resident. The local resident can deposit money in the local currency in the Indian. But for this, it is necessary to have a power of attorney. The India’s largest government sector bank State Bank of India (SBI) is offering the facility of NRE Account to it’s customer below is the complete details related with SBI NRE Account.

Main Features of SBI NRE Account

·         International/Domestic Debit Card

·         SMS Alert

·         Internet-banking

·         NRI Family-Cards

·         To deposit your overseas earnings remitted to India and converted to Indian Rs.

·         Multi City Cheque (MCC)

·         Account may be opened either individually or jointly with other NRIs / OCIs / PIOs

·      Funds deposited in the account will be in the form of fresh remittances from overseas or transfer from other NRE / NRO / FCNR (B) accounts

·         Account can be withdrawn to make local payments in Indian Rs.

·         Account can be opened with close resident relatives on "former or survivor" basis

·         Interest earned on SBI NRE accounts is exempt from Income tax in India.

·      Tenor Of Deposits (TDR/STDR/RD) Minimum period of 1 year and Maximum period of  10  years

·         loan in Indian rupee is available against SBI NRE Deposits

·         Income in the form of interest is exempted from Indian income tax

Types Of SBI NRE Accounts

Following 5 account types are permissible:

o    Savings Bank

o    Current Account

o    Term Deposit

o    Special Term Deposit

o    Recurring Deposit

 

Savings Bank (SB) / Current Account

·         Rupee denominated account

·         Account can be opened with a NIL balance

·   It is preferable to fund the account upfront to avoid payment of charges for non-maintenance of Minimum Average Balance

·   Interest is paid quarterly on the daily balance in Savings Bank account. However no interest is paid in case of Current Account.

·         Principal & interest amount are fully repatriable

·         Nomination facility available

 

Term Deposits (TDR) -

·          Rupee deposits of fixed tenure

·         Account can be opened with a zero balance

·    Interest is paid quarterly on Term Deposit Receipts (TDRs). As per request of the customer Interest can be credited to the NRE Savings Bank account.

·         Principal & interest amount are fully repatriable

·         Nomination facility available

·         You can avail a loan/overdraft against your deposit

·         Premature withdrawal permissible

·     Automatic renewal on maturity for the same period but at the then prevailing rate of interest, if there are no instructions for renewal

 

Special Term Deposits (STDR) -

·         Rupee deposits of fixed tenure

·         Interest gets compounded every quarter. It is paid on maturity with the Principal.

·         Principal & interest amount are fully repatriable

·         Nomination facility available

·         You can avail a loan/overdraft against your deposit

·         Premature withdrawal permissible

·     Automatic renewal on maturity for the same period but at the then prevailing rate of interest, if there are no instructions for renewal

 

Recurring Deposits (RD) -

If you want to set up a foundation to educate children or get married, buy a house or spend your dream vacation? Whatever your financial goals, with our recurring deposit scheme, you can save a little every month so that you have enough funds at the right time to reach your financial goals. So, save a small amount each month and earn at compounded interest rates.

 

·         Minimum monthly installment of Rs.100/-

·         Principal & interest amount are fully repatriable

·         Nomination facility available

·         You can avail a loan/overdraft against your deposit

·         Premature withdrawal permissible

·         No automatic renewal will happen, if there are no instructions for renewal

 

Eligibility For SBI NRE Account Opening

Residential Status	Non Resident External (NRE) Accounts
NRI	Permitted*
PIO	Permitted*#
OCI	Permitted*#
Foreign Nationals on employment in India	Not-permitted
Foreign Students studying in India	Not-permitted
Foreign Tourists on short visit to India	Not-permitted

* A joint account with Resident Indian (RI) who is a close relative can also be opened subject to following conditions:

·         Mode of operation permitted is 'Former (NRI) or Survivor' only

·       The NRI (PIO / OCI) will be the primary/first account holder in the joint account and RI will be the second applicant

 

# Following conditions applicable:

·         Pakistani National will require a prior approval from RBI before opening the account.

·   Bangladesh National to have a valid visa and residential permit issued by Foreigner Registration Office (FRO) / Foreigner Regional Registration Office (FRRO) concerned.

Permissible Credits in SBI NRE Account

·         Transfer from another NRE / FCNR (B) account

·         Transfer from another NRO account (subject to limit)

·         Fresh remittance from abroad through banking channel

·         Personal cheques drawn on foreign account

·      Proceeds of Foreign Currency Notes / Travelers cheques tendered by  NRI / PIO / OCI,  while visiting India. Amounts in excess of USD 5000 (or equivalent) in currency or USD 10,000/- (or equivalent) in Travelers cheques should be accompanied by a Currency Declaration Form

·         Drafts issued by bank / exchange companies abroad

·     Interest, dividend and maturity proceeds of investments made in India etc on repatriable basis

Interest Rates on SBI NRE Account

o    Please click here for SBI NRE Savings Bank account

o    Please click here for SBI NRE Deposits (TDR / STDR / RD)

Funds Transfer From NRE To Overseas Account

The funds in NRE Savings Bank account and deposits are fully repatriable i.e. funds can be transferred to any overseas account. You can place a request for transfer of funds as per any of the following mode:

 

·    Through Internet Banking (INB): For placing outward remittance or funds transfer  request (forex) favouring yourself or third party from your NRE Savings Bank account or NRE fixed deposit account or FCNR (B) account holders to any account overseas. For this, you have to first add a ‘beneficiary’ and then place a request for remittance in his/her favour. The ‘beneficiary’ is to be added only once and the details thereof will be stored in our system, thereby enabling you to send multiple remittances to him/her at any time subsequently.

 

·     Through Branch: Please download a standard request letter by clicking on ‘For outward remittance from NRE / FCNR (B) account’ from ‘Download Forms’ and post / courier it your home branch. Please note that such request coming through email cannot be acted upon, due to security reasons.

Premature Withdrawals

·         Below Rs.1 Crore - No interest is payable if the deposit is withdrawn before one year.

o  Effective 01st April 2017, Penalty for Premature Withdrawal for Retail Term Deposits upto Rs.5.00 lacs will be 0.50% (all tenors).

§     Description- Up to Rs.5.00 lacs

§     Penalty (All Tenors : 0.50%

§     Description: Above Rs.5.00 lacs but below Rs.1 Crore

§     Penalty (All Tenors) : 1%

o    The interest shall be 0.50% or 1% below the rate applicable at the time of Deposits for the period Deposit has remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower.

 

·         Rs.1 Crore & Above - No interest on withdrawals before one year

Account Opening Process

A.    Online Process by making application online 

You may click here to reach below online application form to open SBI NRE Account

Step 1: Fill the Customer Information Section.

Step 2: Next fill the Account Information Section.

Step 3: Download your online submitted application by clicking on "Download Completed Application" on home page and entering NARN number and your date of Birth

Step 4: Please affix passport size photograph(s) of sole/first applicant and second applicant (if any) in the ‘Specimen Signature, Photograph & Third Party Attestation’ section on page 3 and 5 respectively. Also, please enclose one additional photograph of each applicant in the envelope while sending account opening application to the Bank.

Step 5: Please mention place, date and affix your signatures at A1, A2, A3 & A4 for first applicant and B1, B2, B3 & B4 for second applicant.

Step 6: In case you are not visiting our Branch, then for all applicants signatures in the application and all Identification Documents have to be attested by any one of the designated authority as prescribed by SBI.

Step 7: If you are sending an initial remittance (cheque / demand draft), then please draw it in favor of "State Bank of India A/c [Applicant’s Name]".

Step 8: Please mention "ONLINE NRI ACCOUNT OPENING APPLICATION [NARN No issued to you]" on the cover of envelope and post / courier your Account Opening Application along with Identification documents after attestation to the postal address mentioned in the email sent by the Bank during the course of filling online application.

Step 9: Before dispatching your application and supporting documents to SBI in India, if you want to ensure whether your application and all documents are acceptable or not for opening of an account, then you can upload the scanned copy of application and supporting documents for the preliminary verification. For the purpose of uploading, please click on "Upload Application & Document for Preliminary Verification" button on the home page of online account opening application and proceed as mentioned. Uploaded documents will be reviewed by the Bank and the preliminary verification status will be informed to you over email. Accordingly, you can arrange to dispatch your application and supporting documents, after doing the necessary changes / correction (if any required).

B. Offline Process by visiting a SBI branch

·       Please click here to download the account opening application, fill it manually and send it to your preferred home branch in India along with the attested copies of proofs & documents selected for KYC in the application.

 ·      Please fill and submit application along with proofs & documents selected for KYC in the application by visiting a SBI branch in India or overseas.

Documents required to open SBI NRE Account:

·      To open SBI NRE account you will need documents like electricity, water, telephone bill, passport, driving license, resident permit, foreign or Indian bank statement. Also, it is necessary to deposit minimum amount through forex remittance or transfer from NRE account.

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