FAQ'S

QUESTIONS REGARDING HOUSING LOAN
What is the maximum loan I can avail of? You can avail loan maximum upto 80% to 100% of the property.
The actual loan amount sanction is depend upon valuation and your repayment capacity max loan amt Rs. 15 Lakh(Rs. 50 lakh for kalbadevi Branch and for vpa A/C housing property purchased from bank.
The Mumbai Dist. Cent. Co-op. Bank Ltd. lends upto Rs.25.00 Lacs to an individual.
What is the maximum period in which i can repay the loan ? The Housing Loan can be repaid over maximum period of 15 years.       

When can I make application? You can make an application at any time after you have decided to purchase property.
Do I have to become member of Bank? for loan amount upto 1 lakh nominal membership allowed above Rs. 4 lakh loan you need to be regular member.
Can I apply for Loan to repay Home Loan availed from another bank/Financial Institution? Yes, you can avail home loan to repay a loan availed from another bank/Financial Institution.
What are the fees & charges payable & when are the payable? Processing fee would be applicable as below
  • Upto 5 lakh Rs. 113 per lakh
  • Above 5 lakh Rs. 562 per lakh
Charges for till Documents(Franking) will have to be borned by you.

How do I repay the loan? You can repay the loan in EMI (Equited monthly Installment) comprising principal & interest.
What security will have to provide? Normally the first mortgage of property.
Can I repay my loan ahead of the schedule by making part or full prepayment? Yes
Do I get a tax benefit on the loan ? Yes, you are eligible for tax benefits on principal & interest amount of loan under the Income Tax Act.
Does the Agreement for sale have to be registered? Yes
Does the property have to be insured? Yes, you will have to insured property for fire & other hazards and the Bank will be the beneficiary of Insurance Policy.
Any charges for late payment of installment? Yes, late payment charges will be recovered according to loan installment as per rules, if any monthly loan installment not paid within prescribed time schedule.
How much time it takes an advance to get sanctioned in the bank? It depends upon the quantity of the proceed applied for since applications for the higher amount requires approval at higher levels of the bank and therefore, in such case, little more time is taken. However, the bank endeavours to set out of the advances-applications within 24 hours at all levels.
How can i come near the bank for an advance? Rajkot Nagarik Sahakari Bank has one of the largest network of spread over all Gujarat and Kalbadevi. All these branches are manned by highly experienced personnel ever ready to be of service to the customers. All you have to do to simply approach our any branch-manager apprise him/her of your need, and, he/she shall be too pleased to guide you how to continue promote according to your specific needs.
Can i take the home loan from Rajkot Nagarik Sahakari? Of course, you can take a Home Loan from Rajkot Nagarik Sahakari Bank, if you plan to construct or purchase a house/flat or extend your existing house/flat and, you are:
You are a minimum of 18 Years.
Self Employed with regular Income.
Produce all papers and documents as per requirement of the Rajkot Nagarik Sahakari Bank.
Paying capacity can meet your EMI.

How much Loan provide Rajkot Nagarik Sahakari? Loan amount is determined on the basis of the repay capacity of the candidates. The maximum loan would be given as prescribed by the RBI and board of director per unit to any individual applicant.
What are the documents accepted for individual account opening? As per the KYC guidelines at the time of demat account opening the PAN card copy of all the holders is required. This is a mandatory clause. Apart from the PAN card copy, any one of the following address documents have to be attached.
Proof of new address (Any one of the following) of all the holders in the demat account.
  • Ration Card.
  • Copy of Landline telephone bill not more than 2 months old (not WLL or Mobile bill).
  • Electricity bill (not more than 2 months old).
  • Bank passbook.
  • Leave and License Agreement.
  • Copy of Agreement for purchase of premises.
  • Bank attested account statement specifying new address.
The clients should Visit the branch personally and sign once again in front of a DP official on the stamp of In person verification.

Can I submit a photocopy of the PAN card, without showing the original copy of PAN card at the time of account opening? As per the SEBI guidelines the client has to have at the time of account opening an original PAN card copy with him. Thesame has to be produced at the branch at the time of demat account opening along with the photocopy of the PAN card copy. The account cannot be opened in case, the client is unable to produce the original PAN card copy.
Can I open a demat account on the basis of the Letter of Allotment of the PAN card by the income tax authorities? No. Demat account can be opened after the PAN card has been received by the client.
Can I open more than one demat account with only one DP in identical names? Yes. You can open more than one demat account in identical names. There is no restriction on the number of demat accounts you can open with the same/other DP's. However all the demat accounts have to satisfy the KYC norms.
Can a depository account be opened with four holder's names? Yes, a depository account can be opened in the names of four holders but the account can be operated only for dematerialisation of shares held in the same combination. This account cannot be utilized for fresh purchase of shares nor any shares can be transferred from any other account to the 4holder account Hence the standing instruction for credits will be 'N' for such accounts
Can I operate a joint account on "either or survivor" basis just like a bank account? No. The demat account cannot be operated on "either or survivor" basis like the bank account.
Can I add or delete names of accountholders (second or third accountholder) after opening the account? No. Names of the accountholders for a depository account cannot be changed. If you want to change name or add / delete an accountholder, you need to open a new account in the desired holding pattern (names) and transfer the securities to the newly opened account. The old account may be closed.
What are the different categories of accounts that can be opened under an individual demat account? The different categories of accounts that can be opened under an individual demat account are Ordinary Resident, Hindu United Family (HUF) , Non Resident Indian - Repatriable, Non Resident Indian- Non Repatriable, Margin , Promoter, Others
What is 'Standing Instruction' given in the account opening form? At the time of opening a demat account with Saraswat Bank the client has given a Standing Instruction to receive purchases automatically in his account. This 'Standing Instruction for Credit' is given in the account opening form itself. Thus due to this facility, a separate receipt instruction need not be submitted by the client to get his shares credited which are purchased.
Can someone else operate my demat account on my behalf on the basis of Power of Attorney? Yes. If you authorise any person to operate your account by executing a power of attorney and submit it to your DP, that person can operate the account on your behalf. Ensure that the POA has the signature of both you being a Donor and the Donee
Can I open an account in a single name for shares held in joint combination of names? No. The demat account must be opened in the same combination in which the securities are held in the physical form. E.g.; if one share certificate is in the Joint name of Mr. A & Mr. B and another certificate is in the sole name of Mr.A, two demat accounts will have to be opened , one in the joint name of Mr. A & Mr. B and another in the sole name of Mr. A. However if A & B hold a demat account and if the certificates are in the names of B & A, the shares can be dematerialized in the demat account of A & B.by using the Transposition form for this.
How can the holder/s change the existing debit authorisation in his demat account? The holder can change his existing debit authorisation by submitting aduly signed form ofChange in Account Details/request letterby all the demat account holders mentioning the new bank number alongwith a copy of cheque leaf.
What are the different categories of accounts that can be opened under a corporate demat account? The different categories of accounts that can be opened under a corporate demat account are Body Corporate, Bank, Financial Institution , Foreign Institutional Investor , Overseas Corporate Body & Others
What are the requirements for opening a corporate demat account? Requirements:-
  • Copy of Memorandum & Articles Of Association.
  • Office address proof.
  • Board Resolution (For opening the Demat Account and the operating instructions of this account.
  • Photos of the Authorised signatories along with the proof of photo identity and proof of residence.
  • Companies common seal required on the Resolution copy. The common seal of the company is also required on the DP-Client Agreement .and also on the Account Opening form.
  • Introduction by existing account holder or by applicant's bank.

What are the requirements for opening an HUF demat account? The requirements are the same as that of opening an individual demat account except that the account will be opened in the name of the KARTA. No joint holding and nomination is permitted in this account. In addition the stamp of the KARTA should be affixed at all places signed by the KARTA.
PAN copy of both the HUF and Karta is required to be submitted. Also Coparcener's declaration stating the name of the Karta and their relationship to the Karta is to be mentioned.

What are the requirements for opening a demat account in the name of a minor? The requirements are the same as that of opening an individual demat account except that joint holder and nominee cannot be appointed. In addition photograph of the minor and the guardian, proof of identity and address of the guardian and the proof of age (copy of birth certificate) of the minor is required. PAN card of the Guardian to be provided.
CHANGE OF ADDRESS
What is the procedure for effecting change of address in an individual demat account? The change of address can be effected in an individual/HUF demat account on submission of the following:-
  • Duly completed Change of address form signed by all the demat account holders/Karta.
  • Copy of latest DP transaction statement.
  • Proof of the new address documents as per the documents approved as per KYC guidelines(DOCUMENTS ACCEPTED FOR ACCOUNT OPENING).
  • Proof of identity as per the documents approved as per KYC guidelines(DOCUMENTS ACCEPTED FOR ACCOUNT OPENING).

What is the procedure for effecting change of address in a corporate demat account? The change of address can be effected in a corporate demat account on submission of the following:-
  • Duly completed Change of address form signed by the authorized signatories as per the mode of operation with the rubber stamp of the company.
  • Board Resolution confirming the change of address signed by the authorised signatories.
  • Proof of address of the corporate (Document registered with ROC, acknowledged copy of Income Tax return/ Bank Statement/ Leave & Licence agreement/ Copy of Agreement for purchase of premises).
  • Latest transaction Statement of the demat account.
  • Authorised signatory to visit the DP and submit the request personally.
  • Authorised Signatory to sign once again in front of the DP official.

How can the holder/s change the existing mandate/bank details in his demat account? The holder can change his existing mandate/bank details by submittingaduly signed form ofChange in Account Details/request letterby all the demat account holders mentioning the new bank number along with a copy of cheque leaf.
What is the procedure to be followed when a customer has lost/misplaced his slip/instruction booklet? The customer has to immediately intimate the bank by submitting a letter mentioning the details of the slip/booklet lost duly signed by all the holders and request issuance of a fresh booklet. A "Stop Instruction" would be marked against all the unused slips to avoid misuse of slips.
Can I freeze my account? What is the procedure to be followed for freezing / defreezing a demat account? Yes. The depository system provides the facility to freeze the depository accounts for debits or for both debits and credits. The account can be freezed for the following activities:
  1. In an account "freezed for debits", no debits will be permitted from the account, till the time it is defreezed.
  2. In an account which has been freezed for all operations, no credits or debits will take place.
  3. An account can also be freezed for a particular ISIN or part quantity of an ISIN in an investor's account.
In order to freeze the account , the client has to fill the form for Freezing/Defreezing the account. The duly signed demat form has to be submitted at the branch. The status of the account changes from Active to, as per the choice indicated by the client

What is the procedure to be followed if the customer wishes to change his existing signature recorded with the DP? The customer has to give a request letter clearly defining his old and new signature, proof ofaddress and proof of identity of the holder wishing to change the signature . The new specimen signature has to be duly verified by the Branch Manager. Reason for change in signature has to be mentioned on the request letter. Latest transaction statement of the demat account received form the DP to be enclosed.
DEMAT
What is Dematerialisation (demat)? It is the process of converting securities held in physical form (certificates) to an equivalent number of securities in electronic form and crediting the same to the investor's demat account. Dematerialised securities do not have any certificate numbers or distinctive numbers and are dealt only in quantity i.e. the securities are fungible.
What are the formalities to be followed at the time of dematerialisation of shares? The client who wishes to get his demat shares converted from physical to electronic form has to submit a duly defaced Demat Request Form(DRF) to his/her Depository Participant(DP).
Ensure that the security mentioned on the certificate is eliglible for Demat and is listed with NSDL. You can check the eligibility at any of our nearest Saraswat Bank branch.
The client should deface the certificates by affixing the stamp of Surrendered for demat on the shares . This stamp is available at any of the Saraswat Bank Branches However it is advisable to deface the certificates only after confirming the eligibility of the shares. The list of shares available for demat is available at any of our branches.
SeparateDRFs(Demat Request Forms)are to be filled for each company having a unique International Security Identification Number(ISIN). All the holders should sign on the DRF. The client should sign on the DRF exactly in the same manner as the sign registered with the Issuer or Registrar.

What is an ISIN? TISIN (International Securities Identification Number) is an identification number given to the security of an Issuer Company at the time of admitting such security in the depository system by SEBI. This is common for both NSDL and CDSL.
Can I dematerialise any share certificate? Onlythose Shares that are registered in name of the client and belongs to the list of securities admitted for dematerialisation at NSDL /CDSL can be dematerialized.
Should a separate Dematerialisation Request Form be filled for each ISIN? Yes
WCan I have part of my holdings in demat form and part of my holdings in the form of share certificates for the same security? The client can dematerialize shares of the quantity as per his choice. It is not mandatory to dematerialize the entire quantity of shares.
Do my dematerialised securities have distinctive/ certificate numbers? The important characteristic of depository is Fungibility . This means that 100 shares of a security are the same as any other 100 shares of that security. The dematerialized shares have no Folio number, distinctive number and certificate numbers.
How long will the dematerialisation process take? The dematerialisation process would normally take about 30-45 days.
If I have certificates belonging to the same security, in the same order of holders, do I have to open as many accounts as the number of folios? No, you can choose to have all securities deposited in a single account. The combination of DP Id and the Client ID replaces the folio number.
Can I dematerialise all my depository eligible securities through the same account? Yes. You can choose to have all your securities deposited in a single account provided the securities have the same holding pattern.
Can I as a sole holder of the share certificates add one more name as a joint holder at the time of dematerialising my share certificates? No. However, if you want to transfer the ownership from your individual name to a joint name, you should first open an account as the sole holder (account A) and dematerialise the share certificates. You should then open another depository account (account B) in which you are the first holder and the other person is the second holder and make an off market transfer of the shares from the account A to account B. You will have to incur a charge on this transaction. Alternatively, the certificates can be transferred to the joint ownership and then sent for dematerialisation.
Can I dematerialise shares, which are pledged with a bank, which is a DP as well? Yes, you can with the permission of the bank.
How do I demat shares with Pre Marital / Maiden names? In such cases you need to submit a certified true copy of the marriage certificate along with the DRF, when you give your shares for dematting.
What is Rematerialisation. It is the opposite of Dematerialisation . It is conversion of electronic shares into physical form.
Will the investor get back the same certificates after rematerialisation? The registrar will print new certificates with a new range of certificate numbers.
The investor will usually be allotted a new folio number.
TRANSMISSION
What do you mean by Transmission? It is the process of converting securities held in physical form (certificates) to an equivalent number of securities in electronic form and crediting the same to the investor's demat account. Dematerialised securities do not have any certificate numbers or distinctive numbers and are dealt only in quantity i.e. the securities are fungible.
What happens when the shares are held in physical form and one of the holder of the shares expires.? If the securities are held in physical form and the client wishes to demat these holdings, then the surviving holders have to open a demat account in the name of the surviving holder only. In case the surviving holders already have a demat account in their names a new demat account is not required. The physical shares have to be submitted to Saraswat Bank along with the duly signed Demat Request Form and Transmission form (Form OB).The shares will be then send to the respective companies which will be dematerialised and credited to the surviving holders account
What happens when the sole holder of the shares held in demat form expires and there is no valid nomination made for the account? In the event of death of the sole holder, if valid nomination has not been made, then the claimants /successors/legal heirs of the deceased can get the securities transmitted in their favour ,by submitting the following documents to Saraswat Bank along with the transmission form.
  1. A copy of the death certificate, duly notarized or the Original Death certificate.
  2. A copy of the succession certificate duly notarised or an order of a competent court if the deceased has not left a will. OR
  3. A copy of the probate or letter of Administration duly notarised.
However if the market value of the holdings in each of the account of the holdings on the date of the application DOES NOT EXCEED Rs 1 LAC, only the following documents are required to be submitted to Saraswat Bank:
  1. A copy of the death certificate, duly notarised.
  2. Letter of indemnity duly supported by a guarantee of an independent surety made on a non judicial stamp paper.
  3. An affidavit made on a non judicial Stamp paper.
  4. No objection certificates from all legal heirs.
  5. Proof of address, Photo Identity, Income Proof of the Surety required with Branch verification.

What is the procedure to be followed when one of the holder of the shares held in demat form expires? If any of the joint holder of a security dies the surviving joint-holders can get the securities transmitted in their favour by producing the death certificate of the deceased to Saraswat Bank. The surviving holders will have to open a demat account only in the name of the surviving holders. If such a demat account exists, then a new account need not be opened.
Can the DRF be rejected? What are the reasons for rejection? Yes, DRF can be rejected. The reasons for rejection (not limited to) are Signature mismatch, Incorrect holders name, Shares not received as per DRF, Received quantity does not match with the quantity mentioned in DRF, DRF sent to wrong registrar, rejection due to technical reasons i.e. wrong account numbers, DRF not signed by all holders, duplicate certificates have been issued, fake certificates, court order prohibiting transfer etc.
What is the action to be taken in case the DRF is rejected due to "Signature Mismatch" If the DRF is rejected due to "Signature Mismatch", then either the holders need to sign as per their signatures recorded with the registrar as well as with their DP or the signatures have to be notarised/attested (preferably by an entity other than the Depository Participant).
What is transposition? Transposition is the change in order of names in which the certificates are issued.
Can electronic holdings be converted back in certificate form? Yes, it can be done through 'Rematerialisation' Rematerialisation is a process by which a beneficiary can convert the electronic balances in his account into physical share certificates. On Remat the Investor will get new certificates with new folio and certificate number. This entire Remat procedure normally takes 30-45 days depending on the Company.
DELIVERY INSTRUCTIONS
What are Market transactions? An instruction for transfer of security from beneficiary account(investor accounts) to a clearing member account (broker account)is termed as market trade. If a client wishes to transfer shares on account of transaction done on the stock exchange, he has to fill the Saraswat Bank delivery instruction slip column meant for market trade and cancel the column of offmarket trade.
What are Off market transactions? An instruction to transfer security from one Beneficiary Account to another Beneficiary Account is termed as off market transfer. For this the client has to use the Saraswat Bank delivery instruction slip and fill in the column meant for off- market trade and cancel the column of market trade.
What is 'execution date' given in the delivery instruction form? This is the date on which the shares are transferred from the account . Incase of market trades this is a very crucial date and the execution date has to be necessarily before the pay-in date of the stock exchange. Please note that any instruction submitted after 4 PM on a particular day with execution date of the next day is accepted only on a 'Best Effort Basis' without any risk or responsibility on the part of the bank in case of non-execution of the instruction. The delivery instructions accepted at the branch for the same day execution, will be stamped SAME DAY EXECUTION.ACCEPTED AT CLIENTS RISK'. In addition to this stamp all the delivery instructions accepted in the morning of the date of pay-in, will be charged a late fee of Rs 50/- per ISIN with a minimum of Rs 100/-per ISIN.
What is an 'Inter Depository' transaction? Any transaction between two clients not having demat accounts with the same depository is termed as an 'Inter Depository' transaction.
What is the procedure for getting Personalised Delivery Instruction Books? You are provided with a Personalised Delivery Instruction Book within a week's time of opening the demat account. The slips from this booklet should be used for transfer of shares. In case you are nearing exhaustion of the slips in the booklet, you can request for a new booklet by submitting to the nearest branch the requisition slip in the booklet. The requisition has to be signed by all the holders. The request will be couriered to your residence directly in 7-8 days.
What is the significance of DP ID in the delivery instruction slip? This is the DP Id of the client, to whom the shares to be transferred, is maintained. This is a 8 digit number always beginning with IN. It is very crucial to mention the right DP Id. Wrong DP Id could lead to transfer of shares to the wrong client. In case the shares are to be transferred from one demat account maintained with Saraswat Bank to another account maintained with Saraswat bank ,then the DP ID would always be IN300829.
NOMINATION
What is the procedure for nomination? The nomination form duly filled-in should be submitted either at the time of account opening or later. The account holder, nominee and two witnesses must sign this form and the name, address and photograph of the nominee must be submitted.
How many nominees can be appointed? Only one person can be nominated irrespective of the fact whether the demat account is held singly/jointly.
Can the nominee be changed? Yes, the account holder can change the nomination anytime by simply filling up the nomination form once again and submitting it to the Depository Participant. The account holder, nominee and two witnesses must sign this form and the name, address and photograph of the nominee must be submitted. In case of joint holders, all joint holders must sign.
Who cannot nominate? Non-individuals including societies, trusts, body corporates, partnership firms, Kartas of Hindu Undivided Family, minor, holders of power of attorney cannot avail of nomination.
Can a minor be nominated? A demat account holder can nominate a minor, represented by one guardian. However the guardian should not be a holder of the same demat account.
Can an NRI be appointed as nominee? Both resident Indians as well as NRI's can nominate an NRI, subject to exchange control regulations in force from time to time. Similarly, an NRI can nominate a resident Indian or another NRI.
PLEDGE
What is meant by Pledge of securities? Beneficiary Account holders who do not want to sell their shares but wish to avail of advances against dematerialised shares can take loans by marking pledge/lien against those shares. There are two parties involved under pledge, Pledgor (borrower) and Pledgee (lender). Certain set procedures need to be followed in case of a pledge transaction.
Can I pledge dematerialised securities? Yes. In fact, pledging dematerialised securities is easier and more advantageous as compared to pledging physical securities.
What should I do if I want to pledge electronic securities? The procedure is as follows:
  • There are two parties involved under pledge, pledgor (borrower) and pledgee (lender).
  • The pledgor and pledgee are required to initiate creation and confirmation of Pledge by submitting Form W.
  • Where the DP of the pledgor and the pledgee is different, pledgee's acceptance or rejection is communicated electronically to the pledgor's DP.
  • Once the loan is repaid the pledgor is required to initiate closure request to his DP . The pledged status will change to free balance once the pledgee confirms the repayment of the loan and confirms closure of pledge through their DP.
  • Where the pledgor has defaulted in the repayment of loan, the pledgee may invoke the pledge in its favour.
  • The process of creation and closure of pledge is simplified and expeditiously done as the client maintains a Depository account.

What is meant by unilateral closure? All the pledge closures for which the loan has been availed from Saraswat Bank can be closed on unilateral basis .i.e for closure of such a pledge the borrowers signature on the pledge closure form is not required.
Who will receive corporate action benefits on the pledged securities? Inspite of the shares being in the pledged status, the beneficiary will be entitled to corporate benefits offered by the companies from time to time.
Can locked-in securities be pledged? Yes. Locked-in securities can be pledged.
How is a pledge invoked? In case of default by the pledgor, the pledgee can unilaterally invoke the pledge by issuing instructions to his(pledgee's) DP in the prescribed format. On execution of this instruction, the securities are transferred into the pledgee's account. This does not require any confirmation from the pledgor.
MISCELLANEOUS
Is it possible for me to get securities allotted to me in public offerings directly in dematerialised form? Yes. In fact, in the public issue application form of depository eligible companies, there will be a provision for you to indicate the manner in which you want the securities allotted to you. All you have to do is to mention your demat account details i.e. DP Id , DP Name, Client Id and the names of the account holders and any allotment due to you will be credited into your account.
If I am allotted securities in dematerialised form, but the details regarding my beneficiary account are incomplete/ wrong, will I get physical delivery of allotted securities? Yes, securities would in such a case be dispatched in the physical form.
If I am allotted securities in dematerialised form, when will I get the electronic credit in my account? If securities are allotted in the dematerialised form, these would be credited to your account any day between allotment date and listing date, at the discretion of the company.
How will I come to know that my application for public issue in electronic form has been accepted? The issuer company/ their R & T agent will forward you the allotment advise giving the number of shares allotted in dematerialised form.
What are corporate benefits? Benefits accruing to the shareholders in the nature of dividends bonus etc are generally referred to as corporate benefits.
How will I receive dividend/interest, if any, on the securities I am holding? The company/R&T Agents will distribute dividend, interest and other monetary benefits directly to the client, if the shares are in demat form, on the basis of the particulars of the holdings of beneficial owners received from NSDL on the cut off date. If the company is making the payment through ECS, the company will directly credit the dividend to the bank account, which is registered by the client with the DP. If the company is making the payment through cheque, the bank details will be printed on the warrant. The mode of payment of the dividend etc is decided by the company.
If I have holdings in dematerialised form, will the bonus/ rights issue against this be in the same form? In case of bonus allotment by the company, the clients holding the shares in electronic form, will directly receive credit in their demat account. Intimation to that effect would be send by the company/ Registrar to the client.
What happens to the bonus ifyou hold shares in physical form and some others in demat? If you hold some shares in physical form and some others in demat, you will receive the bonus/rights shares in both the forms in proportion to the holdings in each form.
When will I receive the Transaction Statements? Statement of Account which includes Holdings, Transactions and Pending Demat status is send to the account holders every month ( if there are transactions in the account.) If there are no transactions, statement of Holdings will be sent quarterly. Statement of Account is sent to the clients also through Email where the client has registered for the same.
To which address are Depository statements sent? The Depository statements are sent to the correspondence address furnished with respect to the depository account. There is an option to the client to state his local as well as his correspondence address. The correspondence address should also have all the KYC related documents.
NRI
Who is an NRI? Section 2(w) of FEMA, 1999 defines a 'person resident outside India' as a person who is not resident in India.
An individual shall be deemed to be a non-resident in following cases:
  1. When he stays in India for less than or upto 182 days during the preceding financial year. The period of stay may not be 'continuous' and the same shall be calculated by adding up the days of his stay in India during that financial year.
  2. Thus a student who goes for studies abroad and his stay in India during a financial year is less than 182 days, then he shall be treated as non-resident Indian for the next financial year. Similarly, tourists and all others who have gone out of India without the purpose of taking up employment or starting any business abroad, shall be treated as non-residents if, their stay in India during the preceding financial year was less than or upto 182 days.
  3. When he goes or stays outside India for any of the following purposes:
    1. For or on taking up employment outside India, or
    2. For carrying on outside India a business or vocation outside India, or
    3. For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.
In such cases, the person becomes a 'non-resident' irrespective of the period of his stay in India. It is pertinent to note here that while the period of his stay in India shall be reckoned for the preceding financial year, the event of going or staying abroad for any of the aforesaid purposes shall be reckoned for the current financial year.

Who is Resident but not ordinarily resident (RNOR)? An individual is treated to be not ordinarily resident in India in any previous year if he
  1. Has been a non-resident in India in 9 out of the 10 previous years preceding the previous year; or
  2. Has during the seven previous years preceding that year, been in India for a period of or periods amounting in all to 729 days or less.
Thus according to condition in clause (a) a newcomer to India would remain 'not ordinarily resident' in India for the first 9 years of his stay in India. Similarly, in case where a person who is resident in India goes abroad and ceases to be a resident in India for atleast 2 years, he shall, on his return, be treated as not ordinarily resident for the next 9 years.

Who is a 'PIO'? The term PIO is defined as:
a Person of Indian Origin' means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who
  1. at any time, held an Indian Passport or
  2. who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
ACCOUNTS AND DEPOSITS
What are the kinds of bank accounts an NRI can hold in India? As per FEMA Notification No.5/2000-RB, dated 3rd May 2000, an NRI can have a 'Rupee Account' and/or a 'Foreign Currency Account' in India as described below:
  1. NRE SB account in Indian Rupees.
  2. NRE Fixed Deposits in Indian Rupees

The difference between NRE and NRO accounts? Balances held in NRE accounts can be repatriated abroad, whereas funds in NRO account are not generally repatriable. Repatriation of balances held in NRO accounts is allowed subject to certain conditions. Funds remitted from abroad or local funds which can otherwise be remitted abroad to the account holder can be credited to NRE accounts. Funds due to the non-resident account holder which do not qualify, under the Exchange Control regulations, for remittance outside India are required to be credited to NRO accounts. The interest income earned on NRO attracts income tax deduction at source.
Can an NRI transfer funds between NRE accounts? Yes. The funds can be transferred between NRE or FCNR accounts of an account holder and also between NRE or FCNR accounts of two different NRIs, i.e., the funds lying in NRE or FCNR accounts of an NRI can be freely transferred to NRE or FCNR account of any other NRI.
Are NRO or NRE account holders eligible for loans or overdrafts against their fixed deposits? Yes. except for the purpose of re-lending , carrying on agricultural/plantation activities or for investment in real estate business.Loans against NRE fixed deposits can, however, be utilized for investments in India on non-repatriation basis, in certain specified areas and for acquisition of flats/houses subject to prescribed conditions.
Are NRIs permitted to remit funds through Exchange Houses for investment in shares or debentures of Indian companies? Subject to general or specific permission from the Reserve Bank of India NRIs are permitted to remit funds through Exchange Houses for their investment in shares or debentures.
Is nomination facility available? Yes. Nomination facility is available on NRE / FCNB accounts. The account holder needs to fill in the requisite form DA1 which forms a part of NRI account opening form. You may also download nomination form and send it to your branch for them to record the same.
Are funds in NRE/FCNR accounts repatriable? All amounts in the various NRE / FCNR deposits accounts are fully repatriable.
Under liberalised norms, how much money can an NRI remit abroad annually from his NRO accounts? He can remit up to US$ 1 million (or equivalent) per calendar year on production of an undertaking and certificate
What are the tax concessions available to NRIs on balances or deposits held in NRE or FCNR accounts? The income from interest on moneys standing to the credit of NRE or FCNR accounts is exempt from Income Tax. Gifts from such accounts are not liable to Gift Tax as the Gift Tax is abolished w.e.f. 30/9/1998.
Can any person in India be authorised to operate the NRI's account? Yes, you can either use a letter of authority or give a Power of Attorney. The letter of authority must be duly completed with the signature of the person who is authorized to operate the account. The same must be attested and handed over at the branch when the account is opened.
Are Power of Attorney Holders allowed to credit proceeds of foreign currency notes, bank notes and travellers cheques to the NRE accounts? Power of Attorney Holders are not allowed to credit proceeds of foreign currency notes, bank notes and travellers cheques to the NRE accounts.
Can NRE accounts be opened by the power of attorney holder in India on behalf of a non-resident? No.
LOAN
Can Rupee loans be taken against NRE/FCNR deposits in India by the depositor himself? Yes.
For what purpose can these loans be taken?
  1. For personal purposes or for carrying on business activities.
  2. For direct investment in India on non repatriation basis by way of contribution of the capital of India firms / companies.
  3. For acquisition of a flat / house in India for own residential use.

How do I avail a Loan against Deposits? You can avail a loan in Indian rupees against the security of NRE deposits.

You need not close the deposit prematurely, and can avail the loan:
  • At the branch where you maintain the deposit.
  • As an overdraft or as a demand loan.
  • For a maximum of 90% of the face value of deposit, and including the interest accrued on the deposit.
  • At an interest rate linked to interest paid on the deposit, for a loan against NRE deposits