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NRI FAQs

Common questions for HSBC Non-Resident Indian services

NRI

What are the permissible debits?

NRE Accounts

  1. Local disbursements.
  2. Remittances outside India.
  3. Transfer to NRE / FCNR accounts of the account holder or any other person eligible to maintain such account.
  4. Investment in shares / securities / commercial paper of an Indian company or for purchase of immovable property in India provided such investment / purchase is covered by the regulations made, or the general / special permission granted, by the Reserve Bank.
  5. Any other transaction if covered under general or special permission granted by the Reserve Bank.

NRO Accounts

  1. All local payments in rupees including payments for investments in India subject to compliance with the relevant regulations made by the Reserve Bank.
  2. Remittance outside India of current income like rent, dividend, pension, interest, etc. in India of the account holder.
  3. Remittance up to USD one million, per financial year (April- March), for all bonafide purposes, to the satisfaction of the authorized dealer bank.
  4. Transfer to NRE account, within overall limit of USD 1million per financial year, subject to payment of applicable taxes in India.

Can I repatriate money out of balances held in my NRO accounts?

Interest earnings can be repatriated. In addition to this, remittance/s up to USD 1 million per calendar year from balances in NRO accounts subject to payment of applicable taxes is allowed for any purpose up to an aggregate value of USD 1 million:

The documents required to be produced for effecting a remittance are:

  1. Account holder's Letter giving details of purpose of remittance and certifying the same
  2. Cheque or debit authority if the same is not contained in the letter in item (i)
  3. Application in Form A2
  4. A certificate from a Chartered Accountant
  5. FEMA Declaration to be filled in by the NRI

Can I repatriate money from my Property and Investment Income?

All forms of current income arising out of investments in India are repatriable. This includes income by way of interest, dividends, rentals, etc. Current income is repatriable even if the asset generating the income itself is not.

There is no ceiling on the value of such remittances and the amounts are remitted out of the NRO Account based on the following documents: 

  1. The documents required to be produced are: Account holder's Letter instructing the remittance
  2. Copy of document/s establishing the inheritance and value of proceeds credited to the NRO account
  3. Chartered accountant's certificate in the format prescribed by IT authorities
  4. Cheque or debit authority if the same is not contained in the letter in item (i)
  5. Application in Form A2

Can NRI repatriate money from the Sale Proceeds of my Immovable Property?

There are fairly liberal provisions relating to remitting overseas, proceeds arising from sale of properties in India. These provisions can be considered under three categories:

Property acquired by the Non Resident after becoming a non-resident and out of either remittances from abroad or from NRE and FCNR deposits held with banks. The extent of remittance is restricted to the amount of repatriable funds used to acquire the property. Further the facility is restricted to two properties.

The documents required to be produced are: 

  • Account holder's Letter giving details of purpose of remittance and certifying the same
  • Copies of sale deeds or other property ownership document evidencing the acquisition and sales consideration
  • Evidence that the acquisition was from repatriable sources (inward remittance certificate and/or certificate that the payment was made from NRE/FCNR deposits)
  • Cheque or debit authority if the same is not contained in the letter in item (i)
  • Application in Form A2
  • Chartered accountant's certificate in the format prescribed by IT authorities

Sale proceeds of immovable properties held by NRIs/PIOs can be remitted along with other remittances allowed out of NRO accounts mentioned earlier in the note subject to a value ceiling of USD 1,000,000 per financial year (April-March)

The documents required to be produced are: 

  • Account holder's Letter giving details of purpose of remittance and certifying the same
  • Copies of sale deeds or other property ownership document evidencing the holding of the property for ten years and the sale consideration
  • Cheque or debit authority if the same is not contained in the letter in item (i)
  • Application in Form A2
  • Chartered accountant's certificate in the format prescribed by IT authorities

Property acquired by inheritance as an NRI can be remitted along with other remittances allowed out of NRO accounts mentioned earlier in the note Requirements subject to a value ceiling of USD 1,000,000 per financial year (April-March):

The documents required to be produced are

  • Account holder's Letter giving details of purpose of remittance and certifying the same
  • Copy of document/s establishing the inheritance and sale proceeds of property credited to the NRO account
  • Cheque or debit authority if the same is not contained in the letter in item (i)
  • Application in Form A2

Can I repatriate money from Inheritances?

Inheritance proceeds of Assets other than property can also be remitted by an NRI along with other remittances allowed out of NRO accounts mentioned earlier in the note subject to a value ceiling of USD 1,000,000 per financial year (April-March) The documents required to be produced are: 

  1. Account holder's Letter giving details of purpose of remittance and certifying the same
  2. Copy of document/s establishing the inheritance and value of proceeds credited to the NRO account
  3. Cheque or debit authority if the same is not contained in the letter in item (i)
  4. Application in Form A2

Can I deposit a foreign currency cheque or draft at a HSBC branch in India?

You can certainly deposit a foreign currency cheque or draft at an NRI Services Centre in India. Since the instrument would have to be sent overseas for collection it would take between 14 to 21 days to credit the proceeds of the same into your Rupee Account.

How do I send a Rupee draft to a beneficiary in India?

You can give us instructions to issue Rupee drafts in India through online@hsbc - our Internet Banking service. The draft will be issued in India and couriered directly to the beneficiary within 2 banking days.

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This is brought to you by The Hongkong and Shanghai Banking Corporation Limited, India (HSBC). These FAQs are for the general information of the customers and should not be construed as any advise for availing any products / services. Customers before investing in any of the products are required to check with their financial adviser before investing or availing of any products / services. HSBC, India shall not be liable for any loss or damage arising out of any investments based on these FAQs. These FAQs are subject to regulatory changes from time to time and there may be a time lag/delay in updation of the same online.