All You Need To Know About NRI Banking Services At IDBI Bank

In today’s digital world, banking has become much easier and quicker. However, with these advantages there are also disadvantages related to the lack of knowledge about banking. NRI banking is one such type of banking that requires a lot of due diligence. With a lot of private and public banks out there, it is difficult to choose the right bank for you. IDBI bank is one such bank that offers NRI banking. This blog gives all the information you need about NRI banking in IDBI bank.

1. Types of Accounts
2. How to open an account
3. Types of Deposits
4. Loans
5. Forex Card
6. Customer Care
7. FAQs
8. Useful Links

1. Types of Accounts

NRE Account

Eligibility

NRIs (Non-resident Indians) and PIOs (Persons of Indian Origin) are eligible for this kind of loan.

Types of NRE Accounts

• Savings
• Current
• Termed deposits
• Recurring deposits

Features

Some of the features of this type of account include:

• International debit card
• Internet banking facility
• Joint accounts

Repatriation

All funds including principal and interest are repatriable.

Tax

This account is exempt from taxation.

Joint Account

The bank allows individuals to open joint accounts with NRIs and other Resident Indians.

Permissible Credits

• Remittances in any convertible currencies from abroad, which will be converted at ruling exchange rates into Indian rupees
• Transfers from existing NRE/FCNR accounts / deposits
• Foreign exchange brought into India during visits to India

Interest Rate

For balances up to Rs. 5 Crores, the interest rate is 3.00% per annum, whereas the interest rate for balances ranging between 5 and 100 Crores is 3.25% per annum. The interest for balance above Rs. 100 crores is 3.35%.

NRO Account

Eligibility

NRIs (Non-resident Indians) and PIOs (Persons of Indian Origin) are eligible for this kind of loan.

Types of NRE Accounts

• Savings
• Current
• Termed deposits
• Recurring deposits

Features

Some of the features of this type of account include:

• International debit card
• Internet banking facility
• Joint accounts
• Mandate facility to let your family member handle the account on your behalf.

Repatriation

The RBI allows repatriation up to USD 1 million per financial year.

Tax

This account is subject to tax in India.

Joint Account

The bank allows individuals to open joint accounts with NRIs and other Resident Indians.

Permissible Credits

• Remittances in any convertible currencies from abroad, which will be converted at ruling exchange rates into Indian rupees
• Transfers from existing NRE/FCNR accounts / deposits
• Foreign exchange brought into India during visits to India

Interest Rate

For balances up to Rs. 5 Crores, the interest rate is 3.00% per annum, whereas the interest rate for balances ranging between 5 and 100 Crores is 3.25% per annum. The interest for balance above Rs. 100 crores is 3.35%.

2. How to open an account

To open an account, you will have to go to the website and click “Apply now”. You will be redirected to a page, where you will have to enter essential details such as your name, country of residence, contact details and so on. Once you’ve entered the details and submitted the form, the bank’s representative will give you a call to continue with the process.

3. Types of Deposits

IDBI bank offers the following kinds of deposits:

• NRE Fixed Deposits
• NRE Recurring Deposits
• NRO Fixed Deposits
• NRO Recurring Deposits
• FCNR (B) Deposits

NRE Fixed Deposits

Minimum balance

A minimum amount of Rs.10,000 is required to open this kind of account.

Tenure

The tenure ranges from a minimum of 1 years to a maximum of 10 years.

Repatriation

All funds including principal and interest are repatriable

Tax

This account is not subject to any kind of tax.

Premature closure

If you close the account within 1 year then no interest will be paid. Apart from that a penalty of 1% will be charged.

Interest rates

Interest payout at Monthly basis, Quarterly basis or Cumulative interest credit on maturity.

Note:-

• The above rates are applicable only on Fresh NRE / NRO deposits and on renewal of maturing deposits for amounts less than Rs. 2 crore.
• No interest will be paid on NRE deposits closed prematurely in less than 1 year

NRE Recurring Deposits

This account is an ideal tool to invest a fixed sum every month over a period of time from your NRE account.

Tenure

The tenure ranges from a minimum of 1 years to a maximum of 5 years.

Installment

The installment ranges from Rs.1000 to Rs. 10 Lakhs.

Repatriation

All funds including principal and interest are repatriable.

Tax

This account is not subject to any kind of tax.

Premature closure

If you close the account within 1 year then no interest will be paid. Apart from that a penalty of 1% will be charged.

Interest rates

NRO Fixed Deposits

Tenure

The tenure ranges from a minimum of 15 days to a maximum of 10 years.

Repatriation

The RBI allows individuals to repatriate funds up to USD 1 million per financial year.

Tax

This account is not subject to taxation in India.

Premature closure

If you close the account within 1 year then no interest will be paid. Apart from that a penalty of 1% will be charged.

Interest rates

Interest payout at Monthly basis, Quarterly basis or Cumulative interest credit on maturity.

NRO Recurring Deposits

This account is an ideal tool to invest a fixed sum every month over a period of time from your NRO account.

Tenure

The tenure ranges from a minimum of 1 years to a maximum of 10 years.

Installment

The installment ranges from Rs.1000 to Rs. 10 Lakhs.

Repatriation

The RBI allows individuals to repatriate funds up to USD 1 million per financial year.

Tax

This account is not subject to taxation in India

Premature closure

If you close the account within 1 year then no interest will be paid. Apart from that a penalty of 1% will be charged.

Interest rates

FCNR Deposit

Tenure

The tenure ranges from a minimum of 1 year to a maximum of 5 years.

Repatriation

All funds including principal and interest are repatriable

Tax

This account is not subject to any kind of tax.

Premature closure

If you close the account within 1 year then no interest will be paid. No penalty will be charged.

Interest rates

Interest payout at Monthly basis, Quarterly basis or Cumulative interest credit on maturity.

4. Loans

Education Loan

IDBI bank provides education loans for aspiring students who wish to pursue higher studies abroad.

The prospective student must have received an offer letter from the foreign university to be eligible for this loan. IDBI bank gives loans for M.Phil and PHD degrees in the following subjects:

• Arts/ Humanities/ Social Sciences
• Commerce
• Pure Sciences
• Engineering
• Bio- technology/ Genetic Engineering
• Industrial Environmental Engineering
• Nano- technology
• Marine Engineering
• Petro-chemical Engineering
• Plastic Technology
• Cryogenic Engineering
• Mechatronics
• Automation Robotics including artificial intelligence
• Laser Technology
• Low Temperature Thermal Dynamics
• Optometry
• Art Restoration Technology
• Dock and Harbor Engineering
• Imaging System Technology
• Composite Materials Engineering including Decentralized power Distribution
• Packaging Engineering/ Technology
• Nuclear Engineering
• Information Technology including Computer Engineering, Software, Software Quality assurance, Networking/ Connectivity Engineering, Communication system under Hazardous or Post-disaster conditions, Multi- media Communication
• Industrial Safety Engineering
• Agriculture & Agro Technology
• Agronomy
• Medical
• Floriculture & Landscaping
• Food Sciences & Technology
• Forestry & Natural Resources
• Horticulture
• Plant Pathology
• Energy Studies
• Farm Power & Machinery
• Veterinary Sciences
• Soils & Water Management
• Plant Breeding & Genetics
• Small- scale Rural Technology
• Ocean & Atmospheric Sciences
• M.B.A
• M.C.A

The bank allows students to take a loan up to Rs. 50 Lakhs. The interest rates are as follows:

You can contact the bank to apply for the same.

Home Loan

Eligibility

For salaried employees, individuals must be at least 22 years of age. However, they mustn't be older than 70 years of age. However, for self employed and non employed professionals, individuals must be at least 25 years of age, but less than 65 years of age.

Features

Maximum Loan Tenure:

• Salaried: Up to 30 years
• Self Employed Professional: Up to 20 years
• Self Employed Non-Professionals: Up to 20 years

Maximum Loan Amount:

• Up to 30 Lakhs (upto 90% of the property value)
• 30 to 75 Lakhs (upto 80% of the property value)
• Above 75 Lakhs (upto 75% of the property value)

Advantages

• In-principle loan approval even before property is selected.
• Extensive Range of Home Loan Products viz. Home Loan, Home Loan Interest Saver, Home Loan -Top up, Home Loan - takeover facility, Home Improvement Loan, Home Extension Loan, Home Loan - Booking Finance, Loan on second Charge/Pari-passu charge and Home Loan-Refinance Facility.
• Customized Home Loan Features for Salaried (Including NRI), Self Employed Professional.
• Already approved projects for convenience of Home Loan buyers
• Flexible Loan Repayment Option viz. Flexible Loan Installment Plan, Step up & Step down repayment facility, Tranche Based EMI.
• A loan from anywhere to purchase a home anywhere in India.
• Most experienced personnel for smooth and easy loan processing.

How to apply

Go to the online application portal, fill in the details, upload the necessary documents and submit it. A representative from the bank will shortly contact you for further process.

Documentation

• Application form with photograph
• Identity and address proof
• Bank statement
• Tax returns
• Salary slip

Repayment

The bank offers three modes of repayments:

• EMI
• Step up payment (This is for young executives who expect to have a gradual growth in their career)
• Step down payment (This is for executives who expect a fall in their career)

Interest rates

5. Forex Card

IDBI bank offers forex cards for those who wish to travel abroad. The World currency card is available in the following currencies:

AED, AUD, CAD, EURO, JPY, GBP, SGD, USD

Some of the features and benefits of using this card are:

• Special offers on flight tickets, hotel bookings and so on.
• Wider acceptances of card over the world
• Convenient to encash
• Easy to replace
• 24*7 support
• Cheaper than credit cards

To apply for this card you will have to call the bank (1800-209-4324, 1800-22-1070), or you can visit the nearest bank branch.

Following are the FEMA limits on the card.

6. Customer Care

You can contact the bank by calling the following numbers:

• 1800-209-4324 (Toll free)
• 1800-22-1070 (Toll free)
• 022-677199100
• 0091-22-67719100
• 1800-22-6999

You can also choose to mail the bank at: idbicards@idbi.co.in, customercare@idbi.co.in

7. FAQs

Where can I use the WCC Card?

POS transaction.
E-Commerce transaction.
Contactless ( Paywave) transaction.
ATM Cash Withdrawal

What is the validity period of the cards?

These cards are valid for a period of 2 years from the date of production. (Marked on the face of the card). Card is not valid for payments in India, Nepal and Bhutan

What is the minimum amount that can be loaded in IDBI Bank’s World Currency Card (WCC)?

The minimum amount that can be loaded on the card is US $ 100 or Equivalent amount in other currency. The maximum amount would be as per RBI/FEMA guidelines applicable from time to time.

What is the minimum and maximum tenor for which Retail Term Deposit can be kept with IDBI Bank?

The minimum and maximum tenor for general/Senior citizens is 15 days and 20 years, respectively.

Is there any Threshold limit for TDS on NRO deposit interest?

No. There is no threshold limit applicable for TDS on NRO Accounts, which means TDS will be applied on all interest payment including interest on savings bank deposits, right from the very first application.

How will IDBI Bank decide my Home Loan Eligibility?

We will assess your loan eligibility based on your age, qualification, income, number of dependents, spouse income, stability and continuity of your occupation, assets, liability base and your savings history and based on the value of the property proposed to be purchased.

What is the maximum Home Loan Amount I can get?

Home Loans are available maximum up to INR 10 Cr.

What security will I have to provide?

The security for the loan is a first mortgage of the property proposed to be financed with the proceeds of IDBI Home Loans by way of equitable mortgage by deposit of title deeds with memorandum of entry. The Bank will also decide the requirement of additional security if required for the process of loan application.

How do I repay my Home Loan EMI?

You may repay your Home Loan by way of SI (Standing Instruction) with an IDBI Account or by way of ECS (Electronic Clearing System) instruction on your non IDBI account.

Can I get the Home Loan eligibility without selecting the property?

Yes. We can extend in-principle sanction based on your repayment capacity. Accordingly, based on the loan amount sanctioned, you may search the property. For final sanction, property identified for the purpose should meet our criteria.

8. Useful links

• Global currency card
• Interest Rates
• Application Form
• Apply online