Nri Project

7/24/2019 Nri Project

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NRIBanking Management

CHAPTER-1

DESIGN OF

STUDY

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OBJECTIVE

1) The present study seeks to analyse objectively the various facilities,

incentives and policies in this direction. It also aims to study the trend

and progress of NRI investments in various schemes, the general

aareness of the facilities and concessions, and investment patterns of

NRIs, and to offer recommendations of more funds from NRIs through

various channels.

!) The various investment opportunities, incentives and concessions

available to NRIs, and to trace the evolution of the NRI Investment

policy in India.

") NRIs investments in various fields, such as, #ank $eposits, $irectInvestments, and %ortfolio Investments, Investment in real estate.

&) To analyse the different banking facilities available to NRIs.

') To analyse the various banking services in India to Non Resident

%erson.

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SCOPE OF STUDY

The role of NRIs in the industrial and economic development of the

country is gaining importance day(by(day, and the *1 is continuously

taking serious efforts toards liberalising the procedures and idening

the scope of investment opportunities

+n attempt has been made to study NRI investments in India in various

fields. The scope of the study is limited to the eisting investment

schemes of direct and portfolio investment, bank deposits and other

investment opportunities available to NRIs. It also discusses the

incentives and concessions that are being made available to NRIs, and

the special role of NRIs in increasing the foreign echange earnings- ittraces out the procedure to open NRI account, and amplification of non(

residential status under change /ontrol and Income Ta Regulations.

0urther, it is intended to eamine ho far the NRIs are aare of the

situation to avail themselves of the opportunities and benefits presently

available to them. +n attempt is also made to analyse the servicespattern of different banks to NRIs in India.

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RESEARCH METHODOLOGY

SECONDARY DATA

The study has been based on a descriptive and analytical method, and it

is a blend of secondary data. The secondary data ere collected from the

reports and record of various banks like #I bank, union banks etc. The

secondary data on the other hand, are those hich have already been

collected by someone else and hich have already been passed through

the statistical processes. 2hen the researcher utili3es secondary data

then he has to look into various sources from here he can obtain them.

0or e.g. #ooks, nespaper, Internet, publications and reports. In the

present study I have made use of secondary data collected from various

ebsites, #ooks.


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CHAPTER-2INTRODUCTION TO NRI

HISTORY +bout 1'44 years ago, the Tamil %oet +vvaiyar said to the young men

of her generation5 6o across many seas and seek the ealth of human

achievements.6 The enduring maritime, commercial and cultural

contacts that Indians of her generation forged ith outh ast nations

have led to a strong Indian presence there.7 India, hile poor in material

terms, is rich in talent, ambition and drive. This means that Indians havebeen able to go to the farthest corners of the globe carrying ith them no

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capital, but relying solely upon their intrinsic abilities, their illingness

to ork and determination to succeed.

In almost every country of the orld there is a si3eable population of

Indians. 8any had migrated generations ago and settled don there as

nationals of the country of their adoption. In more recent years, there has

been a revival of migration. ome have taken up short(term

assignments, hile others have taken up long(term residence abroad.

+lthough many of them have become citi3ens of other countries, their

social, cultural, and emotional ties ith India and Indians have

continued to be strong. +s a result of their hard ork and initiative, they

have accumulated large resources of investible funds. It is an

indisputable fact that India needs a substantial inflo of capital

resources from abroad. This is mainly to supplement domestic savings,

and also to finance the deficit in the balance of payments and trade.7 To

tide over the difficult balance of payments situation, and to bring about a

turn(round in the balance of payments, the overnment of India 9*I)

have initiated a number of measures to generate additional resources

through different channels It is a recognised fact that the Non(Resident

Indians 9NRIs) command si3eable resources in terms of finance,

scientific talent and technical kno(ho. Though they are settled in

distant lands, their links ith India still continue to help mobilisation of

resources. In a developing economy, like India, investments from NRIs

are indispensable to accelerate the rate of industrialisation and groth,

and they have assumed a great importance in recent years.

There are about 1! million NRIs spread over 1&! countries. iven

attractive facilities and incentives, estimates of NRI funds seeking

investment in India vary from Rs.14, 444 crores to 1',444 crores per

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The success of NRIs in the scientific, economic and cultural fields has

been a matter of great satisfaction to the country. India has had a

continued association ith them, and their investments have been

playing a significant role in the crucial area of the country7s balance of

payments.7

The NRIs have contributed greatly to the industrial promotion and

development of the country by making available foreign echange,

technical skill, entrepreneurship, knoledge and contacts ith

international market, etc. + large number of them settled in developed

countries like the :;, the :+, 2est ermany, /anada, etc., have at

their command immense technical talents- most of them have migrated

after their professional education in engineering, science or technology

in India- they have orked in those countries for more than to or three

decades specialising in their chosen areas, and benefitting from the

eposure to and knoledge about the most advanced technologies.

The *1 naturally stressed upon the technological opportunities in the

country to modernise itself at a fast pace, and therefore asked the NRIs

to use the various facilities offered for their investments. +part from the

technological imperative, NRI investment is elcome for the capital it

ould bring into the country. India is critically short at the margin of

financial resources, and outlays for several crucial areas in the public

sector in the eventh %lan are being kept at loer than desirable levels.

+ shift from the public to private sector is no solution to the resources

constraints. 2hat is needed is an increase in resources for additional

investment, and this can come from outside.


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NRIBanking Management /onstructive role.

2hen liberali3ation of NRI investments as announced in the #udget

speech for 1=>!(>", the amount invested by NRIs that year in these

schemes as Rs.'=.?" crore. It steadily rose to Rs.>>".>? crore in 1=>?(

>@, and crossed the Rs. 1,444 crore mark at Rs. 1,4!'.@? crores1" by

$ecember, 1=>@.

per cent in 1=>'(>? over 1=>&(>', &" per cent

in 1=>?(>@ over 1=>'(>?. In 1=@=, the 8inistry of 0inance appointed a

orking group to study the trends in the flo of inard remittances, and

suggest ays and means of facilitating the deployment in India of the

savings of Indians abroad of late, the *1 has no doubt provided more

facilities and fiscal incentives to NRIs as compared to hat ere

available in earlier years

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%


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INTRODUCTION

NRI Account Meann!"

In India banking terminology, the term NRI +ccount refers to funds

deposited by a Non(Resident Indian or NRI ith a financial institution

authori3ed by the Reserve #ank of India to provide such services. +

Non(Resident Indian is an Indian citi3en ho primarily resides outside

of India.Non-#e$%ent In%an &NRI'

trictly speaking, the term non resident refers only to the ta statusof a

person ho, as per section ? of the Income(ta +ct of 1=?1, has not

resided in India for a specified period for the purposes of the Income

Ta +ct. The rates of income ta are different for persons ho are

6resident in India6 and for NRIs. 0or the purposes of the Income Ta+ct, 6residence in India6 reAuires stay in India of at least 1>! days in a

calendar year or "?' days spread out over four consecutive years.

+ccording to the act, any Indian citi3en ho does not meet the criteria

as a 6resident of India6 is a non(resident of India and is treated as NRI

for paying income ta.

De(nton o( NRI acco#%n! to Fo#e!n E)c*an!e

Re!u+aton Act, ./0

+n Indian /iti3en ho stays abroad for employment, or for carrying

business, or vocation outside India, or for any other purpose, for an

indefinite period.

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+n Indian citi3en ho proceeds abroad for higher studies and takes up a

job on completion of his studies.

+ overnment servant ho is posted abroad on duty ith the Indian

8ission and similar agencies set up abroad by the *I, and those ho

have been deputed abroad on assignments ith foreign overnment or

RegionalBInternational agencies like 2


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+ non(resident Indian 9NRI) pravasi bhartiya is a citi3en of Indiaho

holds an Indian passport and has temporarily emigrated to another

country for si months or more for employment, residence, education or

any other purpose.

+ person of Indian origin 9%I*) is a person of Indian origin or ancestry

but ho is not a citi3en of India and is the citi3en of another country. +

%I* might have been a citi3en of India and subseAuently taken the

citi3enship of another country, or have ancestors born in India or other

states.

*ther terms ith vaguely the same meaning are overseas

Indian and epatriate Indian.In common usage, this often includes

Indian(born individuals 9and also people of other nations ith Indian

ancestry) ho have taken the citi3enship of other countries.

+ccording to the 8inistry of *verseas Indian +ffairs, India has the

second(largest $iaspora in the orld after overseas /hinese. The

overseas Indian community, estimated to number over !' million, is

spread across every major region in the orld overnment of India

considers anyone of Indian origin up to four generations removed to be a

%I*, ith the eception of those ho ere ever nationals

of +fghanistan, #angladesh, #hutan, Nepal, %akistan, or rilanka. The

prohibited list periodically includes /hina and Iran as ell. The

government issues a %I* /ard to a %I* after verification of his or her

origin or ancestry and this card entitles a %I* to enter India ithout a

visa. The spouse of a %I* can also be issued a %I* card though the

spouse might not be a %I*. This latter category includes foreign spouses

of Indian nationals, regardless of ethnic origin, so long as they ere not

born in, or ever nationals of, the aforementioned prohibited

12
https://en.wikipedia.org/wiki/Ministry_of_Overseas_Indian_Affairshttps://en.wikipedia.org/wiki/Overseas_Chinesehttps://en.wikipedia.org/wiki/Overseas_Chinesehttps://en.wikipedia.org/wiki/Ministry_of_Overseas_Indian_Affairs


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countries.%I* /ards eempt holders from many restrictions that apply to

foreign nationals, such as visa and ork permitreAuirements, along ith

certain other economic limitations.

NRI Account E)a3+e"

0or eample, a NRI +ccount held in an India(based bank or another

Reserve #ank of India authori3ed dealer could be opened by a citi3en of

India ho is living for an uncertain but etended period of time in the

:nited tates or another country outside of India. The Non(Resident

Indian citi3en might be operating a business, orking for someone else,

or obtaining higher education.

uch an NRI +ccount should generally be opened by the account holder

personally, instead of by someone holding their poer of attorney. *ne

of the advantages of opening an NRI +ccount is that it can be used by

Non(Resident Indians to invest in and trade the Indian financial markets.

13
https://en.wikipedia.org/wiki/Work_permithttps://en.wikipedia.org/wiki/Work_permit


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CHAPTER-3

TYPES OF NRIACCOUNTS

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T4e$ o( NRI account5

1) NR +ccount ( Non(Resident ternal Rupee +ccount!) NR* +ccount ( Non Resident ordinary +ccount") 0/NR +ccount ( 0oreign /urrency Non(Resident +ccount&) NRNR +ccount ( Non Resident Non Reparable +ccount') R0/ +ccount ( Resident 0oreign /urrency +ccount?) 0/ +ccount ( change arner 0oreign /urrency +ccount

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' NRE &Non Re$%ent E)te#na+ Ruee' Account" Non Resident ternal Rupee +ccount is a term assigned to bank

accounts available to NRIs ho currently reside outside India.

+n NR account can be a saving account, current account or a fieddeposit account and term deposit account in the bank.

It is a Rupee dominated account hich means funds in the NR

account are maintained in Indian Rupees. This mean that the foreign

currency is converted to Indian rupees at the prevailing foreign

echange rates hen the money is deposited into the account.

The primary source of funds deposited into NR accounts must be

from your earning abroad. In other ords, you cannot deposit money

from sources in India such as house rent or pensions in this account.

#oth %rincipal and Interest can be repatriated 9can be converted into

any foreign currency)B transferred out of India. The conversion back

to foreign currency is done at the prevailing fore rates.

%rincipal as ell as Interest income earned on the money in a NR

account is non(taable in India. +lso there is no ealth ta. This ta

eemption is available only for an NR +ccount held by an

individual and not for those maintained by */#s 9*verseas

/ompany #odies)

Interest rate NR saving deposit are the same as the rates applicable

to domestic savings deposits.

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Cou can only have other NRI as joint account holders on NR

accounts. Resident Indians cannot be joint account holders in NR

accounts ith NRIs.

Cou cannot deposit local Rupee fund i.e. Indian currency into this

account.

+ Resident poer of attorney holder cannot open an NR account

on behalf of an NRI. #ut the Resident poer of attorney holder

can make local, rupee payment on behalf of the NRI.

Nomination is alloed for NR account.

Featu#e$ 6 Bene(t$

Rupee denominated avings +ccount

0unds held in this account and interest earned is fully repatriable

$ebit /ard gives you access to your account more than 1 million

master card +T87s

%ersonali3ed cheAue book

8andate facility for your loved ones in India ith a $omestic $ebit

cardto access your account hile you are aay

asy account funding through our alliances ith correspondent banks

orldide

Internet bankingfacility for !&(hour access to your account hile

ensuring the highest level of security

%ay your bills online using our online bill paymentsfacility

njoy an enhanced spending limit and cash ithdraal limit

depending on the account variant availed.

*ur inter(city banking facility allos you to bank at any of our

branches during your visit to India

NR* D NR avings account balances are groupedEE alloing you

the fleibility to maintain balances in either of accounts

1#
http://www.yesbank.in/index.php/branch-banking/yes-touch/24-hour-atm-access.htmlhttp://www.yesbank.in/index.php/branch-banking/yes-touch/24-hour-atm-access.htmlhttp://www.yesbank.in/index.php/branch-banking/yes-touch/internet-banking.htmlhttp://www.yesbank.in/index.php/branch-banking/yes-touch/online-bill-payments.htmlhttp://www.yesbank.in/index.php/branch-banking/yes-touch/24-hour-atm-access.htmlhttp://www.yesbank.in/index.php/branch-banking/yes-touch/24-hour-atm-access.htmlhttp://www.yesbank.in/index.php/branch-banking/yes-touch/internet-banking.htmlhttp://www.yesbank.in/index.php/branch-banking/yes-touch/online-bill-payments.html


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2' NRO &Non Re$%ent O#%na#4' Account" NR* is term assigned to the bank accounts available to the NRIs

ho currently reside outside India. It is also operated for crediting

rupee income, dividend, and interest rates.

+n NR* account can be saving account, current account, fied

deposit account or a term account.

It is a Rupee dominated account hich means funds in the NR*

account are maintained in Indian Rupees. This means that the foreign

currency is converted to Indian rupees at the prevailing foreign

echange rates hen the money is deposited into the account.

Regular bank account of a person, ho becomes an NRI, also gets

converted into NR* accounts.

The sources of fund deposited into NR* account can be from India

or abroad. +n NR* account can hold income earned in India 9such as

dividends, pension or rental income).

0unds cannot be transferred from an NR* account to an NR

account.

+n NR* account can be held jointly ith another NRI or ith a

resident Indian.

%rincipal amount cannot be repatriated outside India in foreign

echange, ithout prior permission of the Reserve #ank of India.

*nly current earnings are repatriable.

The Interest earned on deposits in an NR* account is taable in the

hands of the NRI as per the applicable income ta slab rates.

Interest rates on NR* avings deposits are the same as the rates

applicable to domestic savings deposits.

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+ resident poer of attorney holder cannot open an NR* account on

behalf of the NRI. #ut the resident poer of attorney holder can

make local, rupee payments on behalf of the NRI.

Nomination is alloed for NR* accounts.

Reat#aton (#o3 NRO 7a+ance$

+uthorised $ealers can allo remittances upto :$ 1 million, per

calendar year from balances in NR* accounts subject to payments of

applicable taes. The limit of :$ 1 million per year includes sales

proceeds of immovable properties held by NRIsB%I*s for the period of

14years. In case of property is sold after being held for less than 14

years, remittance can be made after the sale proceeds have been held in

the account for the balance period.

0' FCNR &Fo#e!n Cu##enc4 Non Re$%ent' Account" 0/NR refers to fied term deposit account available to NRIs and

%I*s

0/NR accounts have to be opened and maintained in the foreign

currency account itself.

0/NR can be opened in five different currencies vi3., : dollar,

%ound terling, uro, Fap Cen, and /anadian $ollar and +ustralian

$ollar The sources of funds deposited into 0/NR accounts have to be from

sources abroad. They can also be from your other NR or 0/NR

accounts.

The %rincipal amount and the interest rates are fully repatriable. The

rates are fied or floating ithin ceiling rate of GI#*RB2+% rates

for the respective currencyBcorresponding.

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Interest income earned on the money in a 0/NR account is non(

taable in India.

0/NR is free from currency risk as it keeps the money in same

currency.

8' NRNR Account &Non Re$%ent Non Reat#a7+e

Account'"

2ith a vie to providing further incentives and ider options to persons

of Indian NationalityB*rigin residing abroad 9NRIs) and *verseas

/orporate #odies predominantly oned by NRIs 9*/#s) as ell as

giving opportunities to persons of non(Indian origin and overseas

corporate bodies oned by them for making investments in India,

Reserve #ank has formulated Non(resident 9Non(repatriable) Rupee

$eposit cheme. The cheme came into effect from 1'thFune, 1==!.

The scheme is open to all non(residents including foreign citi3ens of

non(Indian origin 9ecept %akistani and #angladeshi Nationals) and

*verseas /orporate #odies oned by them. +ccounts under the Non(

resident 9Non(Repatriable) Rupee $eposit cheme may be opened in

Indian rupees by authorised dealers out of the funds in freely convertibleforeign echange transferred for the purpose to India in an approved

manner from the county of residence of the prospective non(resident

account holder or from any other country. +ccounts may also be opened

by transfer of funds from the eisting NRB0/NR +ccounts of the non(

resident account holder. No penal interest is charged in case of

premature ithdraal of eisting NRB0/NR deposits for the purpose

of making investment under the scheme.

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+uthorised dealers are free to fi the maturity period of such deposits

beteen si months and three years. They are also free to fi the rate of

interest payable on such deposits. The eact rates may be ascertained

from the concerned bank. The maturity proceeds of the deposit ill not

Auality for repatriation outside India at any time.


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Interest is credited Auarterly and is taable.


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relations etc. In fact the depositor can decide about the purpose of use of

such funds ithout the permission of R#I.

Deo$t an% 9t*%#a9a+$"

Cou can deposit funds from the folloing sources in your R0/

account5

(+ny balances brought from your overseas bank account including

foreign echange earnings through employment, business or vocationoutside India taken up or commenced hile you ere resident outside

India.

(+ny foreign currency notes you bring from abroad- hoever, if the

value of such notes eceeds ',444 or the combined value of TravellersJ

/heAues and notes eceeds 14,444, then you have to submit a

/urrency $eclaration 0orm to the customs authorities on arrival in

India.

Cou must produce the /urrency $eclaration 0orm for endorsement by

the bank hen you submit the money for openingBcredit to an +ccount.

(+ny foreign echange that you get on sale of eligible assets abroad-

eligible assets include bank accounts, overseas shares and securities,

immoveable property and investment in business outside India

(+ny income that you earn from your foreign assets such as dividends,

interest

(Cou can transfer funds from your NR or 0/NR account into the R0/

account once you become a resident Indian- in such cases, no penalty for

premature ithdraal ill be levied on your NR or 0/NR accounts

(+ny pension received from abroad

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Cou can use funds in the R0/ account for the folloing

purposes5

(Cou can use R0/ funds for any remittances or investment abroad- you

can also use the funds for maintenance of dependents or any personal

purposes abroad

(Cou can also use these funds for epenses and investments to be made

in India- ithdraals can be made in rupees and are usually credited by

the bank to the resident rupee bank savings account

R0/ 9$) account is different from R0/ account although the

nomenclature of the accounts is similar. R0/ 9$) account can be

maintained by any resident individual even hen he had not been abroad

at any time. Thus you can open a foreign currency account ith a bank

in India out money received from your relations living outside India.

It can be opened ith gift given in foreign echange by non residents B

NRIs hen they visited India or sent from abroad. upposing you ent

to ingapore ith 14444B purchased from bank for sightseeing, etc.,

and on your return if you are left ith unspent foreign echange, R0/

9$) account can be opened ith such left over cash.

The account can also be opened ith eport proceeds received or

foreign echange earned through consultancy, etc., services rendered to

non residents.

The funds held in the account can be utili3ed for personal purposes as

may be approved by R#I. The funds cannot be utili3ed in the ay as in

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the case of R0/ accounts. This account scheme as introduced from

Fanuary, !44".

:' EEFC 9E)c*an!e Ea#ne# Fo#e!n Cu##enc4

Account'"

These accounts can be maintained by residents ho happen to receive

money from abroad in foreign currency as in the case of R0/ 9$)

account. They can be individuals or corporate like porters.


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that depositor can use the funds for personal and business purposes

ithout buying foreign currency from banks at the ongoing market rate.

ven if the rupee value goes don against foreign currency 9 1 LRs.&' and later becomes Rs. &>. '4), depositors can dra don balance

from account ithout buying from market 9banks) at Rs. &>.'4. It should

also be remembered that in case rupee value goes up as happened during

+pril B 8ay !44", the depositor, hen he B she ithdras funds for

conversion into rupees ill get rupees only at the rate prevailing at that

point of time.

The above type of foreign currency accounts cannot be maintained by all

banks. *nly those commercial #anks, 9also fe co(operative banks)

hich have obtained licence from Reserve #ank under 0oreign

change 8anagement +ct 908+), 1=== are permitted to open and

operate these accounts.

144H foreign echange earnings can be credited to the 0/ account

subject to the condition that the sum total of the accruals in the account

during a calendar month should be converted into Rupees on or before

the last day of the succeeding calendar month after adjusting for

utili3ation of the balances for approved purposes or forard

commitments

uch banks are knon as authori3ed dealers or authori3ed person in

0oreign change.


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made in foreign echange may be regarded as a remittance through

normal banking channel and the same can be credited to the 0/

account.

T*e e#3$$7+e c#e%t$ nto t*$ account"

i) Inard remittance through normal banking channels, other than

remittances received on account of foreign currency loan or investment

received from abroad or received for meeting specific obligations by the

account holder

ii) %ayments received in foreign echange by a 144 per cent port

*riented :nit or a unit in 9a) port %rocessing Kone or 9b) oftare

Technology %ark or 9c) lectronic


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account of #ank for 0oreign conomic +ffairs, 8osco, ith an

authorised dealer in India

vii) %rofessional earnings including directors fees, consultancy fees,lecture fees, honorarium and similar other earnings received by a

professional by rendering services in his individual capacity

viii) Re(credit of unutilised foreign currency earlier ithdran from the

account

i) +mount representing repayment by the account holder7s importercustomer, of loanBadvances granted, to the eporter holding such

account

CHAPTER-

2$


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FACI'ITIES

A(AI'AB'E TO

NRI

Facilities Available to NRIs/PIO

2%


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In;e$t3ent (ac+te$ (o# NRI$

+s a Resident you made some investments and redeemed them after

becoming an NRI, this ill be treated differently. 0or instance, NRI

cannot etend the tenure of their %%0 +ccount. /apital gains long(term

or short(term ill be applicable hen you redeemBsell your past

investments. If you sell shares that are on recogni3ed stock echange in

India for them for more than a year, you ill not have to pay ta on the

capital gain provided the securities transaction ta has been paid. If NRI

ish to buyBsell shares on Indian stock market, they need to open special

account called %I. NRIs can open %I account both repatriation 9NR)

and non(repatriation basis. #ut capital ta ill be deducted at source of

all sell transactions 9this T$ is not applicable for resident share trading

account) they are not alloed to trade on ordinary resident share

tradingBdepository account. NRIs are also not alloed to open

/ommodity Trading +ccount. NRIs also alloed investing in Ta 0ree

#ond.

NRI$ a#e a++o9e%, 9t*out +3t, u#c*a$e on

#eat#aton 7a$$"

1) overnment dated securitiesB Treasury bills.

!) :nits of domestic mutual funds. #onds are issued by public sector

3&


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undertaking 9%:) in India

") Non convertible debentures of a company incorporated in India.

&) %erpetual debt instruments and debt capital instruments issued by

banks in India.

') hares in public sector enterprises being disinvested by the

overnment of India, provided the purchase is in accordance ith the

term and conditions stipulated in the notice inviting bids.

?) hares and convertible debentures of Indian companies under the

0$I schemes 9including automatic route and 0I%#), subject to the

term and conditions specified in schedule 1 to the 08+ Notification

Number !4B!444( R# $ated 8ay ", !444, as amended from time to

time.

@) hares and convertible debentures of Indian companies through stock

echange under portfolio investment scheme, subject to the term and

conditions specified in schedule " to the 08+ Notification Number

!4B!444 R# $ated 8ay ", !444, as amended from time to time.

Infrastructure Ta 0ree #onds.

NRI$ a#e a++o9e%, 9t*out +3t, u#c*a$e on non-

#eat#aton 7a$$"

1) overnment dated securitiesBTreasury #ills.

!) :nits of $omestic mutual fund.

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") :nits of money market mutual funds.

&) National planBsavings certificates 9this is not National avings

/ertificate(N/)

') Non /onvertible $ebenture of a company incorporated in India.

?) hares and convertible debentures of India companies through stock

echange under portfolio investment scheme, subject to the term and

conditions specified in schedules "and & to the 08+ Notification

Number !4B!444 R# $ated 8ay ", !444, as amended from time to

time.

@) change Traded $erivative contract approved by the #I, from

time to time, out of INR funds held in India on non(repatriable basis,

subject to the limits prescribed by the #I.

An In%;%ua+ Re$%ent can 7o##o9 3one4 (#o3 *$

c+o$e #e+at;e$ out$%e In%a"

The minimum maturity period of the loan is 1 year,

the loan is free of interest and.

The Bamount of loan is received by inard remittance in free foreign

echange through normal banking channels or by debit to the

NRB0/NR +ccount of the NRI.

32


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Rea43ent o( *ou$n! +oan o( NRI


34/69


CHAPTER-!

NRI IN(ESTMENT

IN INDIA

3


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NRI INVESTMENTS IN INDIA

A' DIRECT INVESTMENT OPPORTUNITIES

NRIs can invest in India as under5

1. Investment under +utomatic Route ith repatriation benefits

!. Investment ith overnment approval

". *ther investments ith repatriation benefits

&. Investments upto 144H eAuity ithout repatriation benefits

'. *ther investments by NRIs ithout repatriation benefits.

' Auto3atc Route o( RBI =t* Reat#aton Bene(t$

3!


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B' PORTFOLIO INVESTMENT &PI'

NRIs are permitted to make portfolio investment in sharesBdebentures

9convertible and non(convertible) of Indian companies 9ecept print

media sector) ith or ithout repatriation benefit provided the purchase

is made through a stock echange and also through designated branch of

an authorised dealer. NRIs are reAuired to designate only one branch

authorised by Reserve #ank for this purpose.

' Gene#a+ Con%ton$ (o# Pu#c*a$e 9t* Reat#aton o# Non

Reat#aton R!*t$

Investments in eAuity shares and convertible debentures is permitted

subject to an overall ceiling of

9a) ' per cent of the total paid(up eAuity capitalBpaid(up value of each

series of convertible debentures of the company concerned- for

individual NRIs

9b) 14 per cent of the total paid(up eAuity capitalBpaid(upvalue of each

series of the convertible debentures issued by the company concerned

for all NRIs taken together both on repatriation and on non(repatriation

basis. The purchase of shares and debentures under the scheme is

reAuired to be made at the ruling market price. M Indian companies listed

on recognised stock echanges in India are hoever permitted to allo

3#


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NRIs to acAuire sharesBdebentures up to !&H instead of the 14H limit

after a resolution in eneral #ody and necessary information to R#I

2' In;e$t3ent on Non-Reat#aton Ba$$

NRIs intending to invest on non(repatriation basis should submit theapplication to a designated branch of an +uthorised $ealer 9+$). The

+$ ill grant general permission to purchase sharesBdebentures to NRI

subject to the condition that the payment for such investment is received

through inard remittance or from the investorJs NRB0/NRBNR*

+ccount. ecurities acAuired by NRIs under %I scheme on a non(

repatriation basis can be sold ithout any permission on the floor of a

stock echange. $ividend and interest income is fully repatriable.

0' In;e$t3ent on Reat#aton Ba$$

NRIs intending to invest ith repatriation benefits should submit the

application to the designated branch of +$. The +$ ill grant to NRI

permission for purchase of sharesBdebentures subject to the conditions

that ( 1& year the payment is received through an inard remittance in

foreign echange or by debit to the investorJs NRB0/NR account.

Investment made by any single NRI investor in eAuityBpreference shares

and convertible debentures of any listed Indian company does not

eceed 'H of its total paid(up eAuity or preference capital or 'H of the

3$


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total paid(up value of each series of convertible debentures issued by it.

NRIs take delivery of the sharesBconvertible debentures purchased and

give delivery of the sharesBconvertible debentures sold under the

cheme. NRIs can freely sell securities acAuired by them ith

repatriation benefits, ithout any permission, through a stock echange.

$ividend and interest income is also fully repatriable.

8' In;e$t3ent n t*e Unt$ o( Do3e$tc Mutua+ Fun%$ on Non

#eat#aton


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C' INVESTMENT IN REAL ESTATE

1. +ll persons, hether resident in India or outside India, ho are citi3ens

of %akistan, #angladesh, ri Ganka, +fghanistan, /hina, Iran, Nepal or

#hutan, reAuire prior permission of Reserve #ank for acAuiring or

transferring any immovable property in India.

!. + person resident outside India, ho has been permitted by Reserve

#ank to establish a branch, or office, or place of business in India

9ecluding a Giaison *ffice), has general permission of Reserve #ank to

acAuire immovable property in India, hich is necessary for, or

incidental to, the activity.


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CHAPTER-"

PROCEDURE TO

OPEN NRI

ACCOUNT AND

MONEY TRANSFER

1


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Process to open a NRI bank account

in India

Int#o%ucton

F)* a++ t,)e .,) a*e *ei/ing )0ti/e t,e )*/e* ) t,e

In/ia )4ening an NRI ank a55)0nt *)m )0ti/e ) In/ia

i n).a/a6 7e*6 ea6 an/ 5)n7enient8 One 5an )4en

an/ 0e an a55)0nt ) an6 ank in In/ia8 T,e e95ien56 )

t,e inte*net anking )7e* t,e +at /e5a/e ,a ma/e t,i

7ent0*e 4)i+e8 :it, t,e 0e ) e anking a++

t*ana5ti)n 5an e 5a**ie/ )0t eai+68

2hile *pening an NRI bank account from outside of India, one can

have multiple choices. The bank should compulsorily have an

authori3ed dealer to handle foreign currencies. The account balance ill

need to be denominated in rupees.

*ther rules are applicable and functional as it is ith any other account

held by a resident of India. The NR* account can be held jointly ith

anyone, nomination facility is available, maimum limit of remittance

on the amount transferred from the account is 1 million :$ and loan

sanctions to third parties is also provided based on certain norms. In

case of a NR account, balances are freely repatriable. The accrued

interest in them is devoid from ealth and income taes. The poer of

attorney holder can operate this type of account only for a limited time.

Goans up to 144 lakhs can be provided against the funds lying in the

NR account.

2


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0or the 0/NR account, it can be used in any freely convertible currency.

+ll types of debits and credit facilities that are alloed in the case of

NR accounts can also be availed in the case of 0/NR account. Theinterest rates are governed by the #anking *perations and $evelopment

department of the Reserve #ank of India. If the person becomes a

resident of India during the duration of term deposit, the deposits can

continue under the permission of the holder till maturity.

ome of the ell(knon banks in India for opening of NRI accounts are


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5 Contact t*e Ban@

There are usually to ays of getting in touch ith a bank5 either have

them call you, or you call their helpline.

#anks like


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They ill ask for documents based on your country of residence and

hat type of account youJre opening but here are some common ones

that you should be ready ith.

/opy of first and last page of passport

/opy of the visa page on your passport

To residence proofs this can be things like your driverJs license,

phone or utility bills, bank statements, pay stubs etc.

The filled up account opening forms.

%assport photograph.

*n their ebsite some banks have asked for these to be notari3ed, but

in reality they donJt alays need that. elf attested documents also do,

hich is nothing more than signing on every document yourself.

85 =#te a c*ec@ n USD o# 4ou# cu##enc4

Cou ill need to rite a check in order to open the account, and this can

be done in :$ or a fe other foreign currencies. They ill tell you if

you can give the check in the currency of your country, or the alternative

if thatJs not possible.

>5 Ma+ t to t*e PO Bo) o# In%a A%%#e$$

In some cases the banks ill have a %* #o in your country of

residence here you can send the documents instead of sending it to

India.


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These documents are generally processed in India, and sending your

documents to a %* bo may add to a delay of as much as 1' !4 days,

so before you decide here to send the documents itJs better to check

ith them on hat they advise, and hat the difference in cost is.

The bank rep ill follo up ith you and its a good idea to email him

letting him kno that youJve mailed the documents so they can keep a

track of hen they receive it, and help in processing.

Ho9 to t#an$(e# 3one4 (#o3 a In%an 7an@account?

Transferring or repatriating money from an Indian bank account to

your international or NR account is no easy if one follos some

simple guidelines mentioned belo. In a nutshell one can transfer or

remit funds from NR* to NR bank accounts from India to abroad or

you can say to your resident country using the services of a Aualified /+

/hartered +ccountant ho could help you get a form >CA an% >CB

an% ot*e# #e3ttance ce#t(cate$. I believe there may be some of you,

ho are illing to repatriate your funds or looking to kno the

procedure about transferring money from your Indian bank accounts to

foreign banks out of India. o, this one is for you people on ho to

proceed ith this and hat can be the best time to do this.

Ho9 t*e #oce$$ 9o#@$?

Cou being a NR* and NR account holder in India, sometimes brings in

some money to deposit in India or, if you are in receipt of sale proceedsof any immovable property that you have purchased or inherited in

"


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India. There may be fe other situations, like, you are in continuous

receipt of some rental or regular Income in India and no you prefer

transfer of these funds to your bank account in country of residence.

+re you ondering hether you can take back all these receipts to your

bank account in your resident countryO $efinitely, you can transfer all

above ith some of the folloing documents5

1. 0orm 1' /# 9a certificate from /hartered +ccountant).

!. 0orm 1'/+

". 0orm +! 908+ certificate).

&. + reAuest letter to your #ank.

'. ource of Income.

?. %roof of taes paid 9if any).

+bove documents are very basic that are reAuired for every transfer, but

there ill be additional documents reAuired by bank depending upon

source of Income that you are transferring. +s for an eample, copy of

sale deed and registration certificate ill be additionally reAuired in case

of transfer of sale proceeds of Immovable property.

No, if you are thinking about process involved in this and if you are

ondering on ho to arrange above mentioned documents, donJt orry

people, please go ahead ith your reading.

1. +sk a /hartered +ccountant in India to issue you 0orm 1'/#. #ased

on source of Income that you ant to repatriate and upon presentation of

#


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certain documents, chartered +ccountant ill issue 0orm 1'/# hich

clearly eplains about ta deduction on particular Income.

!. #ased upon 0orm 1'/# issued by /hartered +ccountant in India 9eoffer such services) you can fill 0orm 1'/+ online that e ill send you

at your email.

". 0ill in 0orm +!, hich ill ask you about ire details and reason for

repatriating funds.

&. +rrange other documents as reAuired and send all these documents toparticular branch of your bank in hich you hold account.

'. #ank upon scrutiny of documents ill ire funds from Indian account

to your overseas account.

$


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CHAPTER-/

NRI SER(ICES IN (ARIOUS BAN;S

%


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NRI SERVICES IN VARIOUS BANS

BAN OF BARODA

#ank of #aroda commenced its overseas journey ay back in 1='" and

has nurtured Indians abroad to spread their business across the orld.

The un never sets at #ank of #aroda, popularly knon as PIndiaJs

International #ankQ. 2e continue to cherish our rich ethnic traditional

values and culture, during our personal interface ith NRIJs residing

!&


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abroad.

*ur ide netork of foreign branches, offices and /orrespondent

Relations at convenient business locations all round the orld, ensure a

smooth and safe banking eperience to NRIs. 2e understand your

changing needs and epectation on #anking ervices. *ur state of art

technology platform enables us to provide you host of tech savvy

products at your comfort and convenience, thereby facilitating a global

banking.

2e understand you, the NRIs and immensely value your patronage and

ould like to etend to you our bouAuet of products and services. 2e

assure you the best possible banking eperience and ill ensure that

your ealth continues to gro ith us.

P#o%uct$ 6 Se#;ce$

Deo$t P#o%uct$

0oreign /urrency Ginked Rupee $eposits 90/GR) cheme

0oreign /urrency $enominated Non(resident 0ied $eposits 90/NR(

0$)

Non Resident ternal 9NR) 9R:%) avings +ccount

#aroda $ouble $hamaka NR Term $eposit cheme

#aroda %remium Non Resident ternal 9NR) avings #ank +ccount

Non Resident ternal 9NR) 9R:%) /urrent +ccount

Non Resident ternal 9NR) 9R:%) 0ied $eposits

Non Resident *rdinary Rupee avings +ccount 9NR*(#)

Non Resident *rdinary Rupee /urrent +ccount 9NR*(/+)

Non Resident *rdinary 9NR*) 9R:%) 0ied $eposits

Resident 0oreign /urrency +Bc for NRIs returning to India for settling

in India

!1
http://www.bankofbaroda.co.in/int/fclr.asphttp://www.bankofbaroda.co.in/int/fcnr_fd.asphttp://www.bankofbaroda.co.in/int/fcnr_fd.asphttp://www.bankofbaroda.co.in/int/nre_sb.asphttp://bankofbaroda.com/int/nre_sb_premium.asphttp://www.bankofbaroda.co.in/int/nre_ca.asphttp://www.bankofbaroda.co.in/int/nre_fd.asphttp://www.bankofbaroda.co.in/int/nro_sb.asphttp://www.bankofbaroda.co.in/int/nro_ca.asphttp://www.bankofbaroda.co.in/int/nro_fd.asphttp://www.bankofbaroda.co.in/int/rfca.asphttp://www.bankofbaroda.co.in/int/rfca.asphttp://www.bankofbaroda.co.in/int/fclr.asphttp://www.bankofbaroda.co.in/int/fcnr_fd.asphttp://www.bankofbaroda.co.in/int/fcnr_fd.asphttp://www.bankofbaroda.co.in/int/nre_sb.asphttp://bankofbaroda.com/int/nre_sb_premium.asphttp://www.bankofbaroda.co.in/int/nre_ca.asphttp://www.bankofbaroda.co.in/int/nre_fd.asphttp://www.bankofbaroda.co.in/int/nro_sb.asphttp://www.bankofbaroda.co.in/int/nro_ca.asphttp://www.bankofbaroda.co.in/int/nro_fd.asphttp://www.bankofbaroda.co.in/int/rfca.asphttp://www.bankofbaroda.co.in/int/rfca.asp


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Resident 0oreign /urrency 9$omestic) +ccount ( for Resident Indians

Rupee Ginked 0oreign /urrency $eposit 9RG0/$) cheme for NRIs

Loan Fac+te$ to NRI$


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Gargest bank in India

2orld7s largest netork of branches

*ver 1=4 foreign offices

%resence in "' countries

erving the largest number of NRIs

2herever you may be in the 2orld, remitting money to India couldn7t be

made easier. Remit funds to your on account or accounts of your loved

ones in India through our ide array of remittance services. These

remittances can be originated from different time 3ones B countries in

multiple currencies as mentioned belo

!3


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!

Remittance Services

Norm

al

Time

Taken

SBI Rupee Instant Flash from associated ExchangeHouses or Banks in Bahrain, Kuwait, Oman, atar,Saudi !ra"ia and #!E

$ithin%&minutes

SBI Rupee Instant from associated Exchange Housesor Banks in Bahrain, Kuwait, Oman, atar, Saudi!ra"ia and #!E

$ithin' hours

SBI Express Rupee from associated ExchangeHouses or Banks in Bahrain, Kuwait, Oman, atar,

Saudi !ra"ia and #!E

$ithin% to '

da(s

Online Remittances)

SBI Express Remit #K for customers "ased out of

#nited Kingdom

SBI Express Remit *anada for customers "ased out of

*anada

SBI Express $orldwide for customers "ased out of +

selected countries except #S!

$ithin% to +da(s

Instant -ransfer from SBI offices in !ustralia, Bahrain,Belgium, *anada, *hina, France, Hong Kong, Israel,.apan, /aldi0es, /auritius, 1epal, Oman, Singapore,South !frica and #K

$ithin% da(

S$IF- or $ire -ransfer$ithin% to +da(s

2raft, *he3ue and International /one( Order

$ithin4 da(sto '5da(s


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NRI Fa3+4 Ca#%

Cou have alays been there for your family, taking care of their every

need. 2ith NRI 0amily /ard you can continue to take care of them. ItJs

a cash(free, hassle(free, orry(free ay of sending money to your loved

ones. 8aking sure that henever your family needs money, you are

alays there

It is a prepaid card for use in India, hich is issued to resident Indian

9family member or dependent or beneficiary or any acAuaintance of

NRIs in India). :sing this card, the card holder in India can no easily

receive the remittances, by ay of periodic re(charging the amount in

this card by NR or NR* account holder through hisBher IN# account.

The card can be used for cash ithdraal through +T8s, for online

payment on the Net or for making payment at point of sale in malls etc.

E+!7+t4"

Resident Indian 9family member or dependent or beneficiary or any

acAuaintance of NRIs in India) can apply for this card. +pplicant has to

fill an application and needs to submit it in #I branch along ith oneIdentity and +ddress proof for ;C/ purposes If %ersonali3ed /ard 9i.e.

bearing the name of the applicant) has been opted, then card has to be

collected from the branch after approimately 1! orking days from the

date of submitting the application in the branch.

If it is a Non(%ersonali3ed card, then branch ill deliver the card to

applicant at the branch itself instantly.

!!


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Ca#% u$a!e #oce$$"

/ard applicant ill take card from #I branch

/ard holder has to inform card number to NR B NR* account holder

NR B NR* account holder ill map the card to hisBher NR B NR*

avings bank account through Internet #anking 9IN#) facility, as per

folloing steps5

o o to Internet banking account

o /lick on Se(/ardsJ in the menu bar

o /lick on S%repaid /ardJ on the left hand side panel

o /lick on SRegister %repaid /ardJ and enter the card number

*nce the card is registered, then recharge the card can through IN#

account as and hen needed, as per folloing steps5




o /lick on STop up %repaid /ardJ and enter the amount

!"


57/69


/ard holder ill get 8 alert and mail alert on the recharge as ell

as on every spend. Thereafter, card is ready to be used at +T8 B %* B

online shopping.

e4 Featu#e$"

/ard is valid for 14 years from the date of issue

8inimum recharge amount is Rs. 144B(

8aimum recharge amount is Rs. '4,444B(

8aimum balance in the card is Rs. '4,444B(

Regular 8 and mail alerts on every recharge done or spend done

using the card

#alance enAuiry and vieBdonload statement of card can be seen

through the folloing link online5 https5BBprepaid.

NR B NR* account holder can also do the balance enAuiry online after

logging into their Internet #anking +ccount. The procedure is

mentioned belo5




o /lick on S%repaid /ard $etailsJ and select the card

NRE Sa7ing A55)0nt

!#


58/69


UNION BAN

Unon Ban@ Un()e% Deo$t Sc*e3e

:nder the present NR deposit scheme, if an NRI needs funds, he has

the folloing options5

To raise a loan against pledge of deposit !H *$R or at interest rate

stipulated from time to time.

To close the deposit before maturity.

%remature closure of deposit entails loss of interest on the entire

deposit, if the deposit has not run for minimum maturity period of 1!

months.

If deposit has run for a period of 1! months or more, the NRI depositor

is entitled to interest at the rate applicable for the period the deposit has

actually run, subject to penalty of 4.!'H.

#oth the above options involve a cost to the depositor either in the form

of interest payable on loan or loss of interest on deposit. To mitigate

these difficulties, the :nion :nfied $eposit cheme as introduced,

hich facilitates ithdraal in units of deposits ithout affecting the

interest due on the subsisting 9continuing) portion of the deposit.

I3o#tant Featu#e$ O( T*e Sc*e3e

1. ligibility

!$


59/69

NRIBanking Management Non Resident Indians of Indian nationality or origin.

!. +mount *f $eposit

8inimum Rs. 14,444B( or more in multiples of Rs. ',444B(

$eposits under the scheme ill be sub(divided into units of Rs.

',444B( each. very unit ill be treated as a separate deposit. $etails

of units ill be mentioned on the face of the deposit receipt.

Unon S3a#t Ruee Deo$t Sc*e3e

In India, uniform rates of interest are offered on repatriable deposits of

NRIs Ui.e. NR Term 9Rupee) and 0/NR Term 90oreign /urrency)

depositsV by all banks, as these interest rates are fied as per directions

from the Reserve #ank of India, the regulator, and are linked to

prevailing GI#*R.


60/69


"&


61/69


CHAPTER-

FINDING

SUGGESTION

CONC'USION

"1


62/69


FINDINGS

The findings of the study sho that there are various attracting NRI

investments- the overnment has been providing a number of special

facilities and incentives to NRIs.

tate bank of India is one of the largest NRI services serving bank. #ank

of #aroda is providing many services to NRI customers as compare to

:nion #ank

G)7e*nment t) a++). Aa/,aa* en*)+ment ) NRI

PIO OIC

"2


63/69


overnment has decided that +adhaar enrolment of Non(Resident

Indians, %ersons of Indian *rigin and *verseas /iti3en of India should

be eventually alloed to help them authenticate their identity digitally,

%arliament as informed today.

6The government has decided that a longer term goal should be to

epand +adhaar enrolment activities in order to ensure that all personson the Indian soil 9Resident Indian, NRIs, */IB%I* and visa holding

visitors) shall be empoered ith a uniAue identityBidentifier that can

authenticated on a digital platform any time anyhere,6 %lanning

8inister Rao Inderjit inghsaid in ritten reply to Gok abha6

RemitG0*0 5,a*ging


64/69


The online remittance service provider Remituruis charging fied fee

from Non Resident Indians 9NRIs) in the :; and uro3one for

transferring funds to friends and relatives in India.

:ntil recently, customers could only send money either through an

option ith indicative echange rates or through a fied rate option

here there as no fied fee charged.

0rom +ugust !41' onards, customers can choose a nominal fied fee

to transfer money using the services of Remituru, said a release issued

by the company hich claims it7s the first and only digital money

transfer service that offers the diaspora in the :; and uro Kone three

different options to send money to folks back home.

Remituru is backed by +venues, one of the biggest e(commerce

companies in outh +sia. The +venues group ons close to >'H in

Remituru.

6Gistening closely to our customer over the last fe months revealed the

need to offer a ider choice,6 said the release Auoting Remituru /*Naushad /ontractor. 6If customers ant a fourth option, e ill

"
http://economictimes.indiatimes.com/topic/RemitGuruhttp://economictimes.indiatimes.com/topic/exchange%20rateshttp://economictimes.indiatimes.com/topic/CEO%20Naushad%20Contractorhttp://economictimes.indiatimes.com/topic/CEO%20Naushad%20Contractorhttp://economictimes.indiatimes.com/topic/RemitGuruhttp://economictimes.indiatimes.com/topic/exchange%20rateshttp://economictimes.indiatimes.com/topic/CEO%20Naushad%20Contractorhttp://economictimes.indiatimes.com/topic/CEO%20Naushad%20Contractor


65/69


implement it.... The market is groing and rapidly shifting toards

digital options6, said /ontractor.

+ccording to 2orld #ankestimates, global cross(border personalremittances touched : '>4bn last year. India, accounting for more

than : @4bn of this, is the single largest receiver of foreign

remittances in the orld.

The brand Remituru is oned and run by +venues %ayment7s India

%vt. Gtd., a subsidiary of the +venues group.

Ra!*u#a3 Raan t#e$ to 9n NRI %eo$t$ 74 $u7$%n!

7an@$"

In a big(bang entry, ne Reserve#ank of India9R#I)

governor Raghuram Rajanopened the door ide to dollars from NRIs

and foreign borroings by banks, by subsidi3ing the cost of using these

funds locally.

+t present, banks do not go all out to raise non(resident deposits becauseto use them locally, they have to sap them into rupees. + sap enables

a bank to get back the same Auantity of dollars to repay hen the deposit

matures even if the rupee has depreciated since then. Typically fore

saps cost around @H, hich increases the cost of a dollar deposit

eAuivalent to 1!.@"H. The R#I has offered to provide saps at ".'H,

making them very attractive for banks.

"!
http://economictimes.indiatimes.com/topic/World%20Bankhttp://economictimes.indiatimes.com/bank-of-india/stocks/companyid-11964.cmshttp://timesofindia.indiatimes.com/topic/Raghuram-Rajanhttp://economictimes.indiatimes.com/topic/World%20Bankhttp://economictimes.indiatimes.com/bank-of-india/stocks/companyid-11964.cmshttp://timesofindia.indiatimes.com/topic/Raghuram-Rajan


66/69


The governor also reversed some of the capital controls, promised ne

bank licences by Fanuary and hinted at reversing some liAuidity

tightening measures. The R#I partially reversed an earlier decision

alloing companies to take over foreign businesses up to four times

their net orth if funds came by ay of eternal commercial

borroings.

SUGGESTIONS

#anks must conduct regular customer urveys and customer needs to

assess the changing needs of customers.

""


67/69


#anks should design various NRI services and products to suit the

underlying dimensions of Auality service, convenient location, lo cost

and safety.

There should be less regulation hile opening NRI account. %rocedures

to open NRI account should also be easy and simple to create NRI

accounts.

8ajor training programmes need to be introduced for bank staff in

marketing of NRI services to enable skill development, reorient mindset

and to become customer centric.

Technology upgradation by ay of enhanced access and delivery

channels should supplement the eisting netork and the branch unit

should transform into most attractive marketing outlets ith

personalised consultancy services.

CONCLUSION

"#


68/69


/ustomers for NRI services are changing in terms of their ants, needs,

desires, epectations and problems and financial service providers have

to understand ho their customers are, hat they prefer, hy they buy,

ho makes the decision and ho the consumer uses the product and

service.

$ue to NRI investments in India there are increase in economic

development and financial development in India

India is also gaining the name in orld by providing various investment

policies, banking services and also ta saving facilities to NRIs.

In conformity ith these changes, there should be changes in the #ank7s

services, training, attitudes and images, marketing strategies and patterns

of organi3ation and control.

Ne technology driven products blended ith the traditional ones and

personali3ed service ill enable banks to etend a variety of financial

services under one roof.

NRIs are able to access their bank account effectively and efficiently in

India.

B7+o!#a*4

"$


69/69


0inancial institution and markets

&thedition G. 8. #hole

Tata 8cra

Documents

Nri Project