All You Need To Know About NRI Banking Services At Punjab National Bank

NRI Banking is difficult and tedious. Deciding the right bank for you requires a lot of contemplation. There are several banks in India that offer NRI Banking. Punjab National Bank is one of them. This page contains all the information you need to know about NRI banking in Punjab National Bank. This page covers all the basic details such as eligibility, termed deposit interest rates, NRI loans, and online remittance for NRI.

1. NRI Bank Accounts
2. Documents required to open an account
3. Deposits
4. Foreign remittance
5. Loans:
6. Forex card:
7. Forex services offered to Exporters and importers
8. Customer Care
9. FAQs
10. Useful Links

1. NRI Bank Accounts

Punjab National Bank has the following NRI accounts:

F.C N R(B) Account

N.R.E Account

N.R.O Account

R.F.C Account

NRE Account:

Who can open an account?

Both Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) can apply for this type of account. Savings, Fixed deposits & recurring accounts can be opened.

Joint account:

If you wish to open a joint account, you can open a joint account with an Indian residing in India.

Repatriation

Both interest and principal are repatriable in permitted countries.

Transactions:

All the remittances made to this account will be converted into Indian rupee based on the day’s exchange rate. A noteworthy point is that NRIs residing in Pakistan and Bangladesh require permission from the Reserve bank of India to open an account in PNB.

Interest and Taxation:

Both interest and principal amount are exempted from taxation in India. The interest rate for savings accounts with balances below Rs. 10 lakh is 2.7% per annum, and the interest rate for savings accounts with balances more than Rs. 10 Lakh is 2.75% per annum.

NRO Account:

Who can open an account?

This type of account can be opened by NRIs, that is non-resident persons of Indian origin or nationality (other than nationals of Pakistan and Bangladesh) and by Overseas Corporate Bodies (OCBs). Just like an NRE account, you can opt for a savings, fixed deposit or current account.

Joint account:

If you wish to open a joint account, then you can open only with a resident only on ‘Former or survivor’ basis.

Repatriation

Capital held in any NRO account can be repatriated abroad upto $1M USD.

Transactions:

All legitimate dues in rupees and proceeds of foreign remittances can be credited into these accounts. However, selected transactions over Rs. 100,000 are subject to reporting.

Interest and Taxation:

All NRO accounts are subject to tax. The interest rates are the same as NRE accounts. The interest rate for savings accounts with balances below Rs. 10 lakh is 2.7% per annum, and the interest rate for savings accounts with balances more than Rs. 10 Lakh is 2.75% per annum.

RFC Account:

Who can open an account?

RFC or resident foreign currency account can be opened by any person who is residing in India. You can hold and maintain a RFC account if you receive regular pension or income from your employer outside India or if you received or acquired assets in the form of inheritance from a person is/was a resident outside India. These deposits can be maintained under savings, current or termed deposits.

Interest and Taxation:

The interest is exempted from tax only if the person holds the status of an NRI. The interest rates are the same as NRE accounts. The interest rate for savings accounts with balances below Rs. 10 lakh is 2.7% per annum, and the interest rate for savings accounts with balances more than Rs. 10 Lakh is 2.75% per annum.

FCNR Account:

Who can open an account?

NRIs can open these accounts. However, NRIs residing in Pakistan and Bangladesh must seek approval from RBI. That being said, Indian staff posted at the Indian Embassy in Pakistan or Bangladesh can open these accounts. A noteworthy point is that the account can be opened by the NRI only and not by the holder of power of attorney in India. These accounts can only be maintained in the form of term deposits for a tenure ranging from a minimum of 1 year to a maximum of 5 years. These deposits can be maintained in 6 currencies, i.e., US dollar (USD), Pound Sterling (GBP), Euro (EUR), Australian dollar (AUD), Canadian dollar (CAD), and Japanese Yen (JPY).

Repatriation

Both principal and interest are repatriable in the currency of your choice.

Transactions:

Any remittance from outside India or Traveler cheques or currency notes tendered on visit to India are accepted. However, International postal orders cannot be accepted. If the remittance is received in any of the designated currencies mentioned above including the Indian rupee, it will be converted into INR by the authorized branch at the risk and cost of the remitter. The balance in the existing accounts can also be converted to any of the designated currencies at the prevailing TT selling rate of that currency.

Interest and Taxation:

No wealth tax or income tax is applicable to these accounts. The interest rates are the same as NRE accounts. The interest on these deposits are paid on the basis of 360 days to a year. For deposits upto 1 year, the interest will be paid without any compounding effect. However, if the tenure exceeds a year, the interest can be paid at intervals of 180 days.

Additional Benefits:

Any account holder maintaining a balance of 5000 USD will be eligible for the following concessions:

• Free remittance up to Rs. 1,00,000 per annum from your account to anywhere in India.
• 50% concessions on bank service charges.
• Free multi city cheque books.
• Free locker for customers maintaining a balance above $10000 or its equivalent.
• No inter-bank transaction charges.
• Bank will bear foreign bank charges on transfer of funds to Nostro accounts, only if the balance is above $10000 or its equivalent.

2. Documents required to open an account

To open an NRI account, the following procedure has to be followed: Visit their website to download the account opening form. Indians living in other countries with the exemption of Bangladesh and Pakistan can fill this form and post it to the bank or you can choose to visit the bank in person.

You can also choose to mail the bank (ebaydelhiaof@pnb.co.in, nri@pnb.co.in ) asking for the account opening form.

The form must have a mention of the bank’s branch in which you would like to maintain your account. Apart from that you will have to attach the following documents with your AOF:

• Two passport size photos of the account holder. (One has to be affixed to your AOF)
• Copies of relevant pages of your passport and visa.
• Proof of your current overseas address.
• Initial foriegn remittance to open your account (Demand draft in rupees, Demand drafts or personal cheques in foreign currency, Wire transfers, foreign currency or travelers cheques).
• Copies of photographs and passports have to be self-attested.
• A set of specimen signatures of the applicant on a separate sheet.

Applicants may fill the form and submit it along with the other required documents to the bank’s centralized center:

NRI Cell, RLBD division, PNB CORPORATE OFFICE 1 st floor, West Wing, Plot no: 4, Sector-10 Dwarka, New Delhi-110075, India

Telephone Nos. 011- 28044202, 011-28044201 E-mail ID: ebaydelhiaof@pnb.co.in , nri@pnb.co.in

3. Deposits

Punjab National Bank offers two kinds of deposit schemes, termed deposit and global deposit scheme.

1.Termed Deposits:

NRE & NRO Deposits:

The interest rates mentioned below are applicable for new and renewed NRE & NRO deposits. The interest earned on NRO deposit is subject to a tax deduction at source. Senior citizens are eligible to an additional rate of interest of 50 basis points, for all maturities on domestic deposits less than Rs. 2 crores.

* Annualized Yield in % terms at the beginning of the slab.

2.Global Deposit schemes :

The bank offers the Global Foreign Currency Deposit Scheme. NRIs can deposit a minimum amount of USD 5000 or its equivalent under the FCNR (B) scheme. The foreign currency will be converted into Indian rupee. Some of the benefits of this type of scheme include:

• Free remittance up to Rs. 1,00,000 per annum, from anywhere in India.
• No collection charges on any instrument collected in account holder’s account, up to Rs.1 lac per annum, from anywhere in India subject to recovery of out of pocket expenses.
• Depository services: 50% concessions on service charges of our bank till the deposits remain with our bank.
• Free multi city chequebook for CBS branch customers
• Free Lockers facility for the customers maintaining a minimum balance of US$ 10000 or its equivalent under FCNR(B) Scheme or Rs. 5,00,000 under rupee deposit scheme.
• No Inter-branch (Intersol) transaction charges for the account holders, in the CBS branches
• Bank will bear foreign bank charges on transfer of funds to our nostro accounts subject to minimum deposit of USD 10000 or its equivalent.
• Foreign Currency funds will be converted into Rupees with exchange margin of only 2 paise per unit of foreign currency in case remittance is received through SWIFT for opening accounts under Rupee Deposit Scheme.
• Facility of automatic renewal of Fixed Deposits on maturity.
• Linkage with saving account for family at home by allowing overdraft by marking lien in their FCNR account.

You can contact the bank for interest rates. Source: https://www.pnbindia.in/document/NRIservices/GLOBAL-DEPOSIT-SCHEMES-INCENTIVES.pdf

3.Gold monetization scheme (GMS):

You can also choose to deposit your gold and earn interest on that. The rate of interest along with the tenure are mentioned in the table below:

Please contact the bank for more details.

4. Foreign remittance

Punjab National Bank does not have its own flagship remittance platform. However if you wish to remit money to India, it can be done through PNB’s Nostro Account with the correspondent banks listed below and following the steps:

You can approach the bank with the following details:

• Correspondent bank name, swift code & the nostro account number for the respective currency ( EgL HSBC Bank for GBP)
• PNB’s swift code “PUNBINBBISB”
• Beneficiary’s name, account number and branch
• Purpose of remittance

Trade foreign currency on PNB’s FX platform.

PNB allows you to trade foreign currency on its FX platform. The platform allows you to buy, sell and trade foreign currency. The platform maintains anonymity to ensure safe banking. Below are the registration and transaction charges.

The above mentioned charges are subject to GST.

The platform can be accessed by logging on to the website https://www.fxretail.co.in/#/login. There is no limit on the number of transactions per day. However, a single transaction must not exceed 5 million USD.

You can check the official website for more details.

Outward Remittance under LRS (Liberalised Remittance Scheme)

Eligibility:

To be eligible for this feature, you must be:

• Resident individual (Retail Internet Banking) customer
• KYC complied, account should be 1 year old, PAN, Mobile No and Email Id must be updated in CBS.

Purpose:

You can use this feature for the following purposes:

• Gift
• Donation
• Travel (Business, Pilgrimage, Medical treatment, Education)
• Maintenance of close relative

How to use this feature:

Go to the netbanking website, select retail internet banking, login to your netbanking account, click on transactions , choose transfer to other bank accounts, select LRS, select account number and click continue. Accept the terms, and click “LRS outside India”, enter your beneficiary details and continue with your transfer.

Supported Currencies:

The supported currencies are:

●USD ●GBP ●CHF ●EURO ●CAD ●AUD ●JPY ●HKD ●SGD ●SEK ●AED ●NZD

Transaction limit and time frame:

Limit for single outward remittance will be USD10000 or its equivalent and the limit or cumulative value of all outward remittance in a financial year will be USD 100000 or its equivalent. A noteworthy point is that both limits will be applicable within the LRS limit of USD 250000 per FY. All valid remittance orders received till 16.00 Hrs IST will be processed on all working days. Remittance orders received after this time will be taken up for next forex business day (excluding Saturday / Sunday / and intervening holidays).

5. Loans:

Punjab National Bank offers two kinds of loans, Housing loans for NRIs and Student loans for students who wish to travel overseas to pursue their studies.

House Loans for NRIs:

All NRIs and POIs are eligible for this loan. The loan can be acquired in the form of a mortgage against a property or a loan for the construction/ renovation/ acquisition/ repair and improvement of a property. The loan must be repaid by the borrower within 30 years. Repayment along with EMI and interest can be paid through the NRE/NRO/FCNR account.

The documents required to apply for the house loan are:

• ID proof
• Residential address proof in India
• Copy of your passport and Visa
• Residential address proof for your current overseas address
• If you’re a PIO, then you have to submit a copy of the PIO card issued by the government
• Work permit or employee contract
• Salary statements if you’re a salaried employee
• Balance sheet if you’re not a salaried employee

Education loan:

PNB Udaan Loan allows students to go abroad and continue their studies. Students (Indian citizens) who get opportunities for undergraduate, post graduation, and diploma/degree are eligible for this loan. The purpose of this loan includes:

• Fee payable for tuition/hostel.
• Examination/library/laboratory fee.
• Travel expenses
• Life insurance.
• Caution deposit
• Purchase of books
• Any other tool required for completing your education

If the loan amount is less than Rs. 7.5 Lakhs, no security is required. However, if the loan amount exceeds Rs. 7.5 Lakhs, you have to provide some tangible assets as security to the bank. The loan has to be repaid within 15 years, and the moratorium is course tenure + 1 year. You can contact the bank for the application procedures and interest rates.

6. Forex card

All Indian citizens with a valid PAN card traveling abroad with the exception of Nepal and Bhutan are eligible for this card.

Currency of Issue and Validity of Card:

World Travel Cards (WTCs) are available in three currencies i.e. USD, GBP & EURO. The Cards are issued with a pre- embossed expiry date in mm/yy format which cannot be extended further. If the validity of the card expires, a new card needs to be issued to the customer. The existing balance in old card, if any, may be transferred through the nodal branch of WTC i.e. BO ISB, New Delhi (D No.- 4553). The request of the same to be done in the issuing branch.

The documents required to apply for this card include:

• Forex card application form
• Copy of passport and visa
• Copy of pan card
• Declaration form A2
• Latest passport photo

Transaction Limit:

Cash withdrawal limit per transaction on ATM are as per the limit, set by the concerned ATM provider of the country of visit with a maximum of USD 1000/Euro 800/GBP 500 per day. No maximum ceiling for use of the card at merchant establishments (POS) has been prescribed. However, local acquirer (Overseas outlets) may fix their own limits.

To apply for this card, you can either walk into the bank asking for the application form, or you can download it, fill it and submit it along with the above mentioned documents in the nearest branch of the bank.

There is no minimum limit for loading money into the card, however the maximum limit is USD 2,50,000 or its equivalent. The card can be reloaded for reuse. A noteworthy point is that you don't need an account in the bank to purchase this card. You can also claim insurance on the card by filling a form for the same. You can visit the nearest branch with the above mentioned documents to get yourself a Forex card. The issuance of the card costs Rs. 100 excluding taxes. And the ATM withdrawal fee is USD/Euro/GBP 1.50 per transaction.

Sr. No	Particulars	Charges
1	Issuance/Recharge	Rs.100+ Applicable Taxes
2	Duplicate PIN	Rs.100+ Applicable Taxes
3	Replacement of Card	Rs.100+ Applicable Taxes (if delivered in India) USD 20.00/ actual cost whichever is higher for delivery abroad
4	ATM withdrawal fee	USD/GBP/EUR1.50+ ApplicableTaxesasperthe currencv of the card #
5	ATM balance enquiry	USD/GBP/EUR0.50+ ApplicableTaxesasperthe currency of the card #
6	Refund/ Surrender of Balance in branch	Rs.100+ Applicable Taxes

7. Forex services offered to Exporters and importers

Punjab National Bank offers services to exporters and importers as well. These services include:

• Pre-shipment finance in foreign currency and Indian rupees
• Post-shipment finance in foreign currency and Indian rupees
• Handling export bills on collection basis
• Outward remittances for purposes as permitted under Exchange Control guidelines
• Inward remittances including advance payments
• Quoting of competitive rates for transactions
• Maintenance of Exchange Earners Foreign Currency (EEFC) accounts
• Assistance in obtaining credit reports on overseas parties
• Services Offered To Importers
• Establishment of Import Letters of Credit covering import into India and handling of bills under Letter of Credit
• Handling of import bills on collection basis
• Remittance of advance payment against imports
• Offering utilization of PCFC ( pre-shipment credit in foreign currency) for imports
• Credit reports on overseas suppliers
• FX-Retail: The portal customized by CCIL available in our Website where direct access to the interbank market is available even for small value transactions. Customers can buy/sell foreign exchange (USD/INR) directly using the portal by creating a user ID and password.
• Trade Finance Redefined Portal: In this portal Export customers can scan and send documents directly to bank assures better turnaround time and simultaneously offering a host of other features like information DashBoard, real time tracking transactions/application status etc.

8. Customer Care

Punjab national bank has dedicated NRI CELL to answer all NRI banking related Queries. Find the information below.

Address and contact details:

For account opening NRIs/PIOs customer can contact centralized branch located at Delhi at following address:

NRI Cell (Retail Liability Banking division):

PNB CORPORATE OFFICE 1 st FLOOR, WEST WING, PLOT NO: 4, SECTOR-10 DWARKA NEW DELHI-110075, INDIA

Dedicated NRI Telephone lines: +91-11- 28044202, +91-11-28044201

International Toll Free Nos. for NRI Customers:

United States: +18444519295
United Kingdom: +448000318030
UAE: +800035770298

Dedicated Email ID: nri@pnb.co.in ebaydelhiaof@pnb.co.in

Official Website: www.pnbindia.in

For all inward remittance to India NRIs/PIOs customer can contact centralized branch located at Delhi on following address:

PUNJAB NATIONAL BANK, INTERNATIONAL SERVICE BRANCH, 1 St Floor, PNB House7, Bhikaji Cama Palace, New Delhi- 110066

E‐mail: bo4553@pnb.co.in

PHONE: +91-11- 23414237, +91-11-40045915/16/18/19/20

Punjab national bank has foreign offices as well for any queries related to NRI banking. Branches and contact details in respective countries are found here .

9. FAQs

In what currency will the NRE and NRO account be maintained?

All the deposits in these two kinds of accounts will be maintained in the Indian currency (Indian rupee).

NRE/FCNR accounts can be opened with which funds?

Money remitted from overseas through legitimate channels can be used to open and maintain these accounts. These accounts can be opened in Indian Rupees with / out of the funds received as foreign inward remittances in freely convertible currency through normal banking channel.

The Foreign Currency Travelers Cheques / Notes may be accepted during temporary visits of the NRI, for credit to account.

Transfers from rupee accounts of non-resident banks.

Can NRO accounts be opened jointly with Indian residents?

Yes. The accounts may be held jointly with residents only on ‘former of survivor’ basis. NRIs and PIOs may hold an NRO account jointly with other NRIs and PIOs.

Is the addition or deletion of name/s of joint account holders allowed?

At the request of all the joint holders, the Bank may allow the addition or deletion of name/s of joint account holder/s, as per rules.

Is the amount held under NRO deposit repatriable?

NRI/PIO may remit from the balances held in NRO account an amount not exceeding USD one million per financial year, subject to payment of applicable taxes.

The limit of USD 1 million per financial year includes sale proceeds of immovable properties held by NRIs/ PIOs.

Other than current income and the limit of USD 1 Million per financial year applicable to NRIs/PIOs, balances in NRO accounts cannot be repatriated without the prior approval of RBI.

Is transfer of funds from existing NRE / FCNR a/c to NRE a/c and vice-versa permitted without the prior approval of RBI?

Yes.

Is nomination permitted in NRE Account?

Nomination in favor of NRI/PIO or a resident is allowed in the account.

What are permissible credits for NRE Accounts ?

Inward remittance to India in permitted currency,

Proceeds of account payee cheques, demand drafts / bankers' cheques, issued against encashment of foreign currency, where the instruments issued to the NRE account holder are supported by encashment certificate issued by AD Category-I / Category-II,

Transfers from other NRE / FCNR accounts,

Sale proceeds of FDI investments, interest accruing on the funds held in such accounts,

Interest on Government securities/dividends on units of mutual funds purchased by debit to the NRE/FCNR(B) account of the holder, certain types of refunds, etc.

What are permissible debiits for NRE Accounts ?

Local disbursements, transfer to other NRE / FCNR accounts of person eligible to open such accounts, remittance outside India, investments in shares / securities/commercial paper of an Indian company, etc.

Is Debit Card Facility available to NRE account holders?

DEBIT-cum-ATM Card facility is available for NRE account holders. The same is provided, upon request.

Is there any facility for granting Loan / overdrafts against NRE Deposits to account holders/ third parties?

Yes, for permitted purposes, as per RBI guidelines.

What are the restrictions on advances against NRE deposits?

Can be extended against security of funds held in NRE Account either to the depositors or third parties without any ceiling subject to usual margin requirements.

What are permissible credits for NRO Accounts ?

(i) Proceeds of freely convertible currency foreign inward remittances, received through normal banking channels.

(ii) The Foreign Currency Travellers Cheques / Notes may be accepted during temporary visits of the NRI.

(iii) Transfers from rupee accounts of non-resident banks.

(iv) Legitimate dues in India of the account holder. This includes current income like rent, dividend, pension, interest, etc. as also sale proceeds of Assets including immovable property acquired out of rupee/foreign currency funds or by way of legacy/inheritance.

What are permissible debits for NRO Accounts ?

(i) All local payments in rupees including payments for investments in India subject to compliance with the relevant regulations made by the Reserve Bank.

(ii) Remittance outside India of current income like rent, dividend, pension, interest, etc. in India of the account holder.

(iii) NRI/PIO may remit current income from the balances held in NRO account an amount not exceeding USD one million includes sale proceeds of immovable properties per financial year, subject to payment of applicable taxes.

Is the amount held under NRO deposit repatriable?

NRI/PIO may remit from the balances held in NRO account an amount not exceeding USD one million per financial year, subject to payment of applicable taxes.

The limit of USD 1 million per financial year includes sale proceeds of immovable properties held by NRIs/ PIOs.

Other than current income and the limit of USD 1 Million per financial year applicable to NRIs/PIOs, balances in NRO accounts cannot be repatriated without the prior approval of RBI.

Can FCNR accounts be opened as joint accounts?

In the names of two or more non-resident individuals provided all the account holders are persons of Indian nationality or origin.

Resident close relative (relative as defined in Section 6 of the Companies Act, 1956) on ‘former or survivor’ basis. The resident close relative shall be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the lifetime of the NRI/ PIO account holder.

Whether a resident Indian holder of Power of Attorney is permitted to operate the FCNR account?

Yes. However, remittances can only be made by the account holder.

Some useful links for other FAQs related to NRE,NRO and FCNR Accounts/Deposits can be found below:

https://www.pnbindia.in/document/NRIservices/FAQ_NRE_RMD.pdf
https://www.pnbindia.in/downloadprocess.aspx?fid=THGsIVP2E6LgQSvW7efCjw==
https://www.pnbindia.in/document/NRIservices/FAQ_FCNR_RMD.pdf

10. Useful links

Account opening form
Internet banking services for NRIsbr
Internet banking services application form
ATM application form
How to remit money to India
Housing loan for NRI
Education loan
NRI Help Desk
Forex card application form