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13A.14 The facility of maintaining Non-Resident (Special)
Rupee (NRSR) Account is extended to non resident individuals of
Indian nationality and persons of Indian origin. These accounts
will carry the same facilities and restrictions as are applicable
to domestic accounts of residents in respect of repatriation of
funds held in the account and/or income accrued thereon with an
exception of investment in shares / securities and immovable property
in India, which will be governed by the extant exchange control
regulations applicable on such investments.
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13A.15 For opening an NRSR account, the account
holders should submit an application in Form
NRSR together with the undertaking therein
duly signed to an authorised dealer. After these formalities are
completed it is the responsibility of the accountholder/s to ensure
that all operations in the account including investments/disinvestments
are covered either by the general or special permission of Reserve
Bank. Once this undertaking has been obtained, authorised dealers
need not verify the source of credits and purpose of debits or the
particulars of approvals for investments/disinvestments while permitting
individual credits/debits to the account.
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NOTE: Opening of and operations on the accounts of individuals
of Pakistani/Bangladeshi/Sri Lankan nationality require approval
of Reserve Bank.
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Change of Status from Resident to Non-resident
13A.16 When a person resident in India leaves India for
a country (other than Nepal or Bhutan) for taking up employment,
business or vocation outside India or for any other purpose indicating
his intention to stay outside India permanently or for an uncertain
period, he becomes a person resident outside India. He will have
the option of designating his account as Non-Resident Ordinary (NRO)
account or Non-Resident (Special) Rupee (NRSR) account.
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Joint Account with Residents
13A.17 Non-residents may hold accounts
jointly with residents.
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Types of Accounts
13A.18 NRSR accounts may be maintained
in the nature of current, savings, recurring or fixed deposit accounts.
The requirements laid down in the directives issued by Reserve Bank
in regard to resident accounts shall apply to NRSR accounts.
Operations on the Accounts
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13A.19 The operations on Non-Resident (Special) Rupee accounts
may be allowed freely as in the case of domestic accounts maintained
by resident individuals.
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Interest Rates
13A.20 The Non-Resident (Special) Rupee
accounts are subject to same interest rate discipline as applicable
to resident accounts.
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Inland movement of funds
13A.21 The account holders are permitted
to freely transfer funds from NRO/NRE/FCNR accounts to NRSR
accounts. However, under no circumstances funds held in NRSR
account, irrespective of their source, should be transferred to
NRO/NRE/FCNR account.
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Nomination Facility
13A.22 Like any other account held by residents
the NRSR accountholders can freely nominate residents and/or non-residents.
However, a non-resident nominee will not be entitled to any remittance
facility out of funds held in NRSR account of the deceased person.
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Form A4
13A.23 Irrespective of amount involved
Form A4 need not be completed in respect of debits and credits
to NRSR accounts.
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