A Special Non-Resident Rupee (SNRR) Account is opened with Authorized Dealer (AD) banks in India for specified transactions related to trade, foreign investments, External Commercial Borrowings (ECBs), and more. It serves as an alternative to executing inward/outward remittances in convertible foreign currency for each transaction with residents in India. This account allows non-residents with business…
FCNR (B) deposits and NRE deposits can be opened by Non-Resident Indians or persons of Indian Origin (PIO) or Overseas Citizens of India (OCI). The difference between FCNR (B) deposits and NRE deposits is that the FCNR-B (Bank) deposits are maintained only in Foreign Currencies term deposits and maturity of these deposits is payable in terms…
A non-residential Indian is a person who stays outside India for 182 days or more An Indian citizen or a foreign citizen of Indian origin who has stayed abroad for employment/carrying out business or vocation for 182 days or more during the period of the foreseeing financial year. Non-Resident Indians (NRIs) are permitted to open…
Diamond Dollar Accounts (DDAs) are specialized current accounts denominated in US dollars, maintained with banks in India. These accounts are exclusively available to firms and companies engaged in the import and export of rough or cut and polished diamonds, coloured gemstones, and precious metal jewellery, whether plain, enameled (minakari), or studded with diamonds or other…
[This post answers questions about the rules related to addition or deletion of names in FD, TDS in case of joint accounts, interest calculation in leap year, conditions for deposits held in minor’s name, transfer of fixed deposits, interest payment on prematurely closed deposits, renewal of Overdue deposits, and deposits in the joint names of…
A 2-in-1 account refers to a financial product that integrates a Demat (Dematerialized) account with a trading account, thereby streamlining the process of buying and selling securities. This consolidated arrangement allows investors to deposit funds, manage securities, and execute trades through a single platform, enhancing convenience and operational efficiency. In banking terminology, the term “2-in-1…
Introduction to TDSTDS stands for Tax Deducted at Source. It is a mechanism introduced to collect tax at the very origin of income. Under this system, a person (referred to as the deductor) responsible for making specified payments to another person (the deductee) is required to deduct tax at the source and deposit the same…
Premature withdrawal refers to the closure of a Fixed Deposit (FD) before its maturity date. While depositors may opt for early withdrawal due to unforeseen financial needs, such actions typically attract a penalty, which is generally a deduction from the interest earned on the deposit. General Penalty Structure Most banks impose a penal interest—usually ranging…
A time deposit is a type of bank account that earns interest on the condition that the funds remain deposited for a predetermined period. The term “periodicity” in the context of time deposits refers to the specific duration for which the funds are committed. This term can range from as short as 7 days to…
This post elucidates how interest rates offered by banks may vary based on the tenor of deposits, the Periodicity of interest payable on SB accounts, accounts frozen by enforcement authorities, and floating deposits. Additional rate of interest paid by banks in certain cases, interest payable on NRE and FCNR (B) deposits, rules regarding interest payable…