PIO (Person of Indian Origin) and OCI (Overseas Citizenship of India) are special immigration statuses offered by the Government of India to people of Indian descent living abroad, providing them with significant rights and benefits without granting full citizenship. What is PIO? PIO refers to a foreign citizen (excluding those from Pakistan, Bangladesh, or certain…
A Complete Guide to Opening, Features, and Closure Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits provide Non-Resident Indians (NRIs) with a secure and efficient way to invest their foreign earnings in India while protecting both principal and interest from exchange rate fluctuations. Governed by Reserve Bank of India (RBI) guidelines, FCNR(B) deposits also offer tax-free interest…
Background: PML Rules and Name Change The Prevention of Money-laundering (Maintenance of Records) Rules, 2005 define what constitutes an officially valid document (OVD) for KYC purposes. To ease difficulties faced by individuals whose names change after marriage or otherwise, the Government notified the Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2015 (G.S.R. 730(E)…
Key Takeaways for Banks and Customers The Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025 represent a comprehensive reset of the KYC framework for commercial banks. Replacing the long-standing 2016 KYC Master Direction, the new Directions harmonise KYC references across the banking and payment ecosystem while strengthening customer due diligence, accountability,…
The RBI has now put in place a uniform, time‑bound framework for settlement of claims in respect of deceased customers’ deposits, replacing the earlier patchwork of circulars and ensuring standard procedures across banks. The new Directions mandate simplified documentation, defined thresholds for small-value claims, a strict 15‑day turnaround time (TAT), and compensation for delay, thereby…
The Reserve Bank of India (RBI) has issued guidelines mandating uniformity in interest rates on savings bank (SB) deposits to ensure transparency, fairness, and non-discrimination among depositors. These guidelines apply to all scheduled commercial banks, including public sector, private sector, and foreign banks operating in India. Uniform Rate up to ₹1 Lakh Banks must offer…
The Reserve Bank of India (RBI) has issued updated directions (2025) governing how commercial banks must set and pay interest on domestic deposits, NRE/NRO deposits, and FCNR(B) deposits. The circular emphasises transparency, uniformity, and customer protection. 1. Uniform, Transparent Interest-Rate Framework – Board-approved interest-rate policy. – Uniform, non-discriminatory rates across branches. – No negotiated rates;…
When Domestic, NRE, or FCNR(B) deposits remain inoperative for 10 consecutive years, banks are required to classify them as unclaimed and transfer the balances to the Depositor Education and Awareness (DEA) Fund maintained by the Reserve Bank of India (RBI). To reclaim these deposits, the customer (or their legal heir) must approach the bank where…
Quick summary An NRE account is a rupee account for NRIs/OCIs to park overseas earnings in India with full repatriation and tax‑free interest while they remain non‑resident under FEMA, subject to specific opening, operation, and conversion rules on change in residency status. What is an NRE account Purpose and use-cases Eligibility Key features Tax…
NRO (Non-Resident Ordinary) deposits are rupee-denominated accounts that allow NRIs/OCIs to hold and manage income accruing in India (such as rent, dividends, pension, interest), with repatriation of current income permitted and repatriation of principal subject to limits and documentation. These deposits can be opened as savings/current/term deposits, are subject to Indian taxation, and follow FEMA/RBI…