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What is an NRE Account: Meaning, Full Form, and Benefits
The full form of NRE a/c is Non-Residential External Account. Indian Citizens who live in foreign countries find it very difficult to maintain their finances with their Indian savings account. To eliminate this issue, the government has introduced an NRE account. An NRE account, meaning an account that allows NRIs to keep an account in India and transfer funds from abroad to this account in foreign currency. The funds are transferred in Rupees, which are converted by the prevailing foreign exchange rate. This is a much more convenient option, as NRIs are not allowed to keep a savings account. You can transfer the money from the country you are currently living in and from your other NRE accounts you hold.
What are the Features and Benefits of an NRE Account?
The features and benefits of a Non-Residential External Account are as follows:
- Tax-free Returns: The interest earned on your NRE account deposits is tax-free in India. Therefore, it is beneficial to save.
- Worldwide Access: If you have an NRE account, then you can access it from anywhere in the world. You can keep track of your transactions and check your balance anytime.
- Repatriation of funds: This means you can transfer your funds freely from one country to your home country. It allows you to conduct transactions frequently and move money back and forth as needed. With the help of an NRE account, you can transfer both the principal amount and the interest earned.
- Access other banking services online: You can also access various services such as paying bills for Indian families, requesting a new cheque book, opening a new fixed deposit, and more.
- International debit card: You will receive an international debit card with the NRE account, allowing you to withdraw cash and make online payments.