State Bank of India (SBI) has introduced a TAB-based digital on-boarding process for Non-Resident Indians (NRIs) to simplify the opening of NRE and NRO accounts. The new initiative is now accessible at all SBI branches in India and select foreign offices. By utilising digital tools, the bank aims to enhance the efficiency and convenience of the account opening process.
The digital on-boarding process eliminates the need for physical paperwork, enabling quicker account openings at branches and during customer visits through digital document verification. This streamlined approach is designed to make the process more efficient and convenient for NRIs.
An NRI bank account is a tailored banking solution available to Indian citizens or Persons of Indian Origin (PIOs) residing overseas, offered by Indian financial institutions. These accounts offer a variety of banking services designed to assist NRIs in handling their financial affairs, investments, and transactions within India.
Challa Sreenivasulu Setty, Chairman, SBI, said: “The introduction of TAB-based end-to-end digital NRI account on-boarding journey represents a significant stride in leveraging cutting-edge technology to redefine customer convenience. This end-to-end digital solutionwill drastically reducethe turnaround time and delivering a truly seamless digital experience.”
FCNR (B) accounts
In its monetary policy meeting held on December 6, the Reserve Bank of India (RBI) announced an increase in the interest rate ceiling on Foreign Currency Non-Resident Account (FCNR(B)) deposits. The new ceiling is set at overnight Alternative Reference Rate (ARR) plus 400 basis points for deposits with maturities between 1 year and less than 3 years. This adjustment aims to attract foreign currency deposits from overseas. The revised rates will remain in effect until March 2025, replacing the previous limit of ARR + 200 basis points.
For Non-Resident Indians looking to open a fixed deposit account in India, an FCNR Account is a suitable option. This account enables you to securely deposit and save foreign currency earned abroad in India.
The RBI said: “In order to attract more capital inflows, it has been decided to increase the interest rate ceilings on FCNR(B) deposits. Accordingly, with effect from today (December 6, 2024), banks are permitted to raise fresh FCNR(B) deposits of 1 year to less than 3 years maturity at rates not exceeding ARR plus 400 bps and deposits with maturity between 3 to 5 years at rates not exceeding ARR plus 500 bps. This relaxation will be available till March 31, 2025.”
As per the RBI notification, the rates declared:
1 year to less than 3 years Overnight Alternative Reference Rate for the respective currency/ Swap plus 400 basis points
3 years and above upto and including 5 years Overnight Alternative Reference Rate for the respective currency/ Swap plus 500 basis points