Facilities available to Non-Resident Indians (NRIs)/ Persons of Indian Origin (PIO) for investments in India (As on October 1 , 2003) (i) Bank Accounts and Deposits a) NRE Accounts (Principal/interest repatriable) Savings - Interest is paid at par with domestic deposits. Currently it is 3.5 per cent. Term deposits - Fixed or floating rates of interest within the ceiling rate announced by RBI from time to time. At present the rate is USD LIBOR/SWAP rates of corresponding term plus 100 basis points* * The rate was revised to not more than 25 basis points above the LIBOR/SWAP rates for US dollar with effect from close of business in India on October 18, 2003. b) FCNR(B) (Principal/interest repatriable) Term deposit can be placed with ADs in India in 4 specific foreign currencies ($, £, Î and ¥). Rate of Interest - Fixed or floating within the ceiling rate of LIBOR/SWAP rates for the respective currency/corresponding term minus 25 basis points (except ¥). c) NRO Accounts (Current earnings repatriable) Savings - Normally operated for crediting rupee earnings / income such as dividends, interest. Currently the interest rate is 3.5 per cent. Term Deposits - Banks are free to determine interest rates. d) Repatriation from NRO balances Authorised Dealers can allow remittance/s upto USD 1 million, for any purpose per calendar year from balances in NRO accounts subject to payment of applicable taxes. The limit of USD 1 million per year includes sale proceeds of immovable properties held by NRIs/PIOs for a period of 10 years. In case a property is sold after being held for less than 10 years, remittance can be made if the sale proceeds have been held by the NRI/PIO for the balance period. (ii) Other Investments on repatriation basis: Government dated securities/treasury bills. Units of domestic mutual funds. Bonds issued by a public sector undertaking (PSU) in India. Shares in Public Sector Enterprises being dis-invested by the Government of India, provided the purchase is in accordance with the terms and conditions stipulated in the notice inviting bids. Shares and convertible debentures of Indian companies under FDI scheme (including automatic route & FIPB). Shares and convertible debentures of Indian companies through stock exchange under Portfolio Investment Scheme. Deposits with Indian companies, non-banking finance companies registered with RBI, housing finance companies and other financial institutions. (iii) Other Investments on non-repatriation basis: Units of Money Market Mutual Funds in India. The capital of a firm or proprietary concern in India, not engaged in any agricultural or plantation activity or real estate business. (iv) Investment in immovable Property : May acquire immovable property in India other than agricultural/plantation property or a farmhouse out of repatriable and non repatriable funds . May repatriate Sale proceeds of immovable property acquired in India to the extent of repatriable funds used for acquiring the property, without any lock-in period, upto two residential properties. The balance will be repatriable through NRO Account subject to conditions mentioned at item (i)(d). refund of (a) application/earnest money/purchase consideration made by house-building agencies/seller on account of non-allotment of flats/plots and (b) cancellation of booking/deals for purchase of residential/commercial properties, together with interest, net of taxes, provided original payment is made out of NRE/FCNR(B) account/inward remittances. (v) Facilities to returning NRIs/PIOs: Returning NRIs/ PIOs may continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India, if such currency, security or property was acquired, held or owned when resident outside India. may open, hold and maintain with an authorised dealer in India a Resident Foreign Currency (RFC) Account to transfer balances held in NRE/FCNR(B) accounts. Proceeds of assets held outside India at the time of return, can be credited to RFC account. The funds in RFC accounts are free from all restrictions regarding utilisation of foreign currency balances including any restriction on investment in any form outside India. *************************************************************************** Mailing list (sbinews@xxxxxxxxxxxxx) related information: News/articles about SBI and Banking related matters published in the print media, Internet etc will be circulated through this Mailing List. 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