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

NRI banking is very tricky and complicated. Therefore, it is essential to have the right kind of support. With several choices, it can be difficult to choose the right bank for you. Canara bank is one of them. Canara bank offers premium NRI banking to its customers. This blog contains all there is to know about NRI banking in Canara bank. It covers the account types, deposit types, loans, remittance services, interest rates and so on.

1. Types of Accounts
2. Interest Rates
3. Types of Deposits
4. Loans
5. Remittance Platform Remit Money
6. Remittances through Western Union and Ria Money
7. Remittances through Demand Drafts
8. Instant RemitMoney
9. Forex Card
10. Customer Care
11. FAQs
12. Useful Links

1. Types of Accounts

The types of accounts are:

• NRE Account
• NRO Account

Permissible Debits

The permissible debits to NRE accounts are:

• Local payments.
• Remittances abroad.
• Transfer to NRE/FCNR (B) accounts of the same account holder.
• Transfer to the NRE account of a person other than the account holder subject to conditions. 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 of India.
• Any other transaction if covered under general or special permission granted by the Reserve Bank of India.

Permissible Credits

The permissible Credits to NRE accounts are:

• Proceeds of inward remittances in any permitted currency.
• Current income of NRIs like rent, dividend, pension, interest, subject to payment of income taxes.
• Transfers from NRE/FCNR accounts of the account holder and Interest accruing on the funds held in these accounts.
• Proceeds of Foreign Currency Notes/Travelers Cheques brought by the NRI account holder from abroad during his temporary visit to India, subject to conditions.
• Proceeds of Personal cheques/ Bank drafts, subject to conditions.
• Refund of share/debenture subscriptions to Initial public offer of Indian companies or portion thereof, if the amount of subscription was paid from NRE/FCNR account of the account holder or by inward remittance through normal banking channels.
• Sale proceeds of immovable property purchased out of inward remittances, NRE/FCNR funds subject to conditions.
• Any other credit covered under general or special permission granted by the Reserve Bank of India.

2. Interest Rates

Following are the interest rates on both NRO and NRE accounts

Source: https://canarabank.com/User_page.aspx?othlink=9

You can open bank accounts by filling this form.

3. Types of Deposits

There are three types of deposit accounts:

1. NRE- Rupee Account Scheme
2. NRO-Rupee Account Scheme
3. FCNR (b) Account Scheme

NRE-Rupee Account Scheme Interest Rates

This account is eligible for both simple and compound interest. Below are the interest rates:

Source: https://canarabank.com/User_page.aspx?othlink=9

NRO-Rupee Account Scheme Interest Rates

This account is eligible for both simple and compound interest. Below are the interest rates:

Source: https://canarabank.com/User_page.aspx?othlink=9

FCNR (b) Account Scheme Interest Rates

This account is eligible for both simple and compound interest. Below are the interest rates:

Source: https://canarabank.com/User_page.aspx?othlink=9

RFC Account Scheme Interest Rates

This account is eligible for both simple and compound interest. Below are the interest rates:

Source: https://canarabank.com/User_page.aspx?othlink=9

4. Loans

Canara Bank allows NRIs to avail the following Loan facilities:

Source: https://canarabank.com/User_page.aspx?menulevel=1&menuid=2&CatID=21

Education Loan

This loan is for students who wish to study abroad.

Eligibility

The student must be an Indian. Only students who wish to study STEM (Science, Technical, Engineering and Management) courses are eligible for this loan. The student must have an offer from the top 50 universities in the world.

Quantum of Finance

Collateral Coverage Eligible loan quantum
100% & above Min 7.50 lakh,
Less than 100%. Max- Rs.100 Lakh

10% of Loan amount.

Repayment of the loan will be in equated monthly Installments up to a maximum of 15 years excluding the moratorium period ( i.e., course period plus one year).

Rate of Interest

Source: https://canarabank.com/User_page.aspx?othlink=13

A noteworthy point is that the government has come up with an initiative where they have created a platform- “Jansamarth” that links all national banks and other private banks for students who wish to avail education loans. This unified platform gives all the details you need to get yourself an education loan. Canara bank is also a partner of this initiative.

NRIs can get this type of loan if they wish to :

• Purchase of a ready built house / flat.
• Construction of house / flat.
• Purchase of site and construction of house thereon.
• For undertaking repairs, renovation, expansion, upgradation and creation of additional amenities with a monetary ceiling of Rs. 15.00 Lacs in case of repairs & renovations only.
• For acquiring a second house/flat where the borrower is already having a House/flat with or without loan.

Eligibility

All NRIs within the age range of 21 and 60 are eligible for this loan. The applicant must have held NRI status for at least 3 years. The applicant must also have a steady source of income.

Joint Loans

Spouses and close relatives can also join as joint applicants.

Below is the margin depending on the loan amount.

Source: https://canarabank.com/User_page.aspx?menulevel=1&menuid=3&CatID=37

The margin cost is stipulated on the total project cost, and a noteworthy point is that In the case of Repairs & Renovations, expansion of existing units, upgradation and creation of additional amenities, a uniform margin of 25% on project cost is applicable.

The loan can be repaid by

• EMIs.
• Remittances from abroad through normal banking channels.
• Funds transfer from NRE/FCNR (B) accounts.
• Remittance from local funds by close relatives.
• ECS mandate/PDCs lodging as the case may be.

The repayment period can be a maximum of 30 years. A repayment holiday of 2 months will be given if you are purchasing a new house. Whereas if you purchase Site & Construction of House a repayment holiday of 2 months after completion of House OR 24 months from the date of first disbursement will be given. Similarly if you purchase a flat under construction, then the repayment shall start within 2 MONTHS of completion of construction OR 36 Months from the date of first disbursement, whichever is earlier.

Documents Required for application

• Loan application form with 2 passport size photographs
• Latest Salary Certificate and Form No.16
• ITAO / IT Returns (for professionals and non-salaried persons)
• Proforma Invoices, cost estimates
• Copy of Visa, and passport
• Valid Address proof
• Valid employment proof

Rate of Interest

Below are the interest rates for home loans.

Source: https://canarabank.com/User_page.aspx?othlink=13

Home Improvement Loan

NRIs can get this type of loan if they wish to purchase:

• household furniture items,
• refrigerator,
• fans,
• air conditioner/s,
• wardrobes or
• any other household item/s

Eligibility

The house owner is eligible for this loan. Salaried individuals should have a minimum monthly net take home salary of 25% of their gross salary or Rs. 2000/- after meeting the loan installments for the proposed loan. Professionals and other non-salaried persons should have a minimum annual income of Rs. 50000/- to be evidenced by Income Tax assessment order / return.

• If the loan under this scheme is availed as a part of housing finance, then, the margin stipulated under housing finance may be prescribed for this loan too. In other cases, a uniform margin of 20% may be stipulated.
• In the case of Repairs & Renovations, expansion of existing units, upgradation and creation of additional amenities, a uniform margin of 25% on project cost is applicable. The margin is stipulated on the total project cost.
• In case of Housing Loans where project cost is up to Rs.10 lacs, Stamp duty, Registration Charges and other Documentation Charges can be included in the project cost for the purpose of stipulating margin as well as LTV ratio.
• Where the project cost exceeds Rs.10 lacs, the margin is stipulated only on the basic project cost which shall not include expenses towards Stamp Duty, Registration and other Documentation Charges.

Residual tenure of underlying Housing Loan OR 7 years, whichever is lower.

Documents Required for application

• Loan application form with 2 passport size photographs
• Latest Salary Certificate and Form No.16
• ITAO / IT Returns (for professionals and non-salaried persons)
• Proforma Invoices, cost estimates

Rate of Interest

Below are the interest rates for home loans.

Source: https://canarabank.com/User_page.aspx?othlink=13

Canara Cash

This scheme allows you to earn instant cash against shares, debentures, bonds and units. You can earn interest on your investments and you get to keep them as well as you won’t liquidate them.

Eligibility

All NRIs are eligible for this loan.

How much will you get?

For Shares and Debentures, you will get upto 50 % of market value. For PSU Bonds you will get upto 70% of Market Value, whereas for units of UTI and CBMF you will get 50% of NAV or market value whichever is less.

Maximum Loan Amount

You will be eligible for a max loan amount of Rs. 20 Lakhs if you maintain your demat account with the bank.

You will have to repay the loan amount within 60 months. EMI options are also available.

Uniform margin of 50% shall be applicable on all advances.

Documents required for Loan application

• Stipulated Loan Application with 2 passport sized photographs
• Guarantee / co-obligation where applicable
• Statement of holding of scrips issued by DP
• Latest salary certificate / income proof like ITAO / IT Return
• Financial Statements for the last 2 years (in case of non-salaried individuals)

Rate of Interest

Source: https://canarabank.com/User_page.aspx?othlink=13

Canara Rent

This scheme gives cash against some property for someone’s business or personal needs.

Eligibility

Anyone can apply for this loan. However, the property should have been leased / rented out to PSUs / Central / State / Semi Govt. Undertakings, Reputed Corporates, Banks, Financial Institutions, Insurance Companies and MNCs including the property leased / rented out to our Bank’s Branch/Office or House/Flat leased/rented out to the Bank as Quarters to their Officers/Executives.

The Loan has to be paid within 120 months or the unexpired lease period whichever is earlier.

The margin is 25%.

• Application form
• Registered Lease Deed executed between lessor and lessee to be submitted along with ANY ONE OF THE FOLLOWING:
• Tripartite Agreement (to be stamped as agreement-cum-power of attorney) executed between lessors, lessee and the financing branch authorizing the lessee to remit lease rentals to the financing branch directly
  OR
  A Power of Attorney (to be stamped and notarized) executed by the lessors in favor of the Bank authorizing the Bank to receive the rents from the lessee which should be lodged with the latter (lessee) and acknowledgement obtained.
• Copy of the sanctioned plan issued by the Competent Authority in the name of seller/earlier owner /developer/land owner as the case may be.

Rate of Interest

Below is the interest rate for this scheme.

Source: https://canarabank.com/User_page.aspx?othlink=13

Canara Mortgage

This scheme allows individuals to claim a mortgage for unprecedented emergencies.

Eligibility

Anyone can apply for this loan.

The Loan has to be paid within 120 months.

Documents Required

• Loan Application form with passport size photographs - 2 copies each
• Copy of lease deed
• Income proof of the applicant and guarantor Income Tax Assessment Order / IT Returns
• Title deeds of the property / EC, latest tax paid receipt / Legal Scrutiny Report
• Approved plan of building
• Certificate of balance if finance is availed against property from any other source
• Annual Financial Statements for the past 2 years (in case of persons other than salaried individuals

Equitable Mortgage of property acceptable to the Bank having clear marketable title. The value of the property should be 200% of the loan amount.

Rate of Interest

Source: https://canarabank.com/User_page.aspx?othlink=13

5. Remittance Platform Remit Money

This facility is for NRIs living in the middle east who wish to send money to India. You will have to visit the below mentioned office to remit money to India. For more details, you can visit their website.

Source: https://canarabank.com/User_page.aspx?menulevel=1&menuid=2&CatID=22

6. Remittances through Western Union and Ria Money

This service allows only cross-border personal remittances, such as, remittances towards family maintenance and remittances favoring foreign tourists visiting India shall be allowed. No outward remittance from India is permissible under this scheme. All the Canara Bank branches are enabled to handle inward remittances under M/s Western Union Money Transfer Scheme and M/s Ria Money.

Source: https://canarabank.com/User_page.aspx?menulevel=1&menuid=3&CatID=67

Swift Transfer

You can send money to India through banking channels. To transfer money via Canara bank’s nostro accounts, you will have to provide the following details:

• Correspondent Bank Name, Swift Code & our Nostro A/c number for the respective currency. (For Example: J P Morgan Chase, New York, CHASUS33 & 001 1 395969- for USD)
• Canara Bank’s Swift Code “CNRBINBBBFD”
• Beneficiary Name, Canara Bank A/c No. & Branch.
• Purpose of remittance:______________ (In absence of Valid Purpose Code, the bank reserves the right to put the remittance on hold and/or return the funds back to the remitter)

The benefits of this method include:

• Simple & Secure Way of remitting funds.
• Remittances upto USD 10,000 or equivalent processed immediately, unless otherwise specified.
• Inward Remittances is accepted in 11 currencies namely AED, AUD, CAD, CHF, EUR, GBP, HKD, JPY, SEK, SGD, USD.
• Convenient channel for creating FCNR deposits

7. Remittances through Demand Drafts

This scheme is available for individuals in the middle east. To avail this feature, you will have to visit the below mentioned exchange houses. For more details, you can visit their website.

Source: https://canarabank.com/User_page.aspx?menulevel=1&menuid=3&CatID=69

8. Instant RemitMoney

This facility allows individuals living in the middle east to instantly transfer money. You can visit the below mentioned exchange houses to avail this facility. For more details, you can visit their website.

Source: https://canarabank.com/User_page.aspx?menulevel=1&menuid=3&CatID=71

9. Forex Card

Canara Bank allows you to buy Forex cards for traveling. You can either buy or sell foreign currencies using this card or you can load money into the card to use it abroad. You can contact your nearest Canara Bank branch to apply for the same.

Below mentioned are the rates as of 16th September, 2022.

Source: https://canarabank.com/User_page.aspx?nid=1325

10. Customer Care

Foreign offices are mentioned below:

11. FAQs

Can proceeds of personal Cheques and Bank Drafts be credited to NRE accounts?

Normally proceeds of personal Cheques drawn by a NRI/ PIO account holder on his foreign currency account and Bank Drafts payable in any permitted currency including instruments expressed in Indian rupees for which reimbursement will be received in foreign currency can be deposited to his/her NRE account, provided the same is tendered in person during his temporary visit to India and the Cheques/ Drafts are standing in the name of the account holder.

Are NRI Senior Citizens eligible for NRI banking?

No. They are not.

How many NRI individuals can join together and open a single NRE joint account?

The joint account should not have more than 4 individuals.

Can a resident Power of Attorney holder open/close an NRE account on behalf of a NRI?

Can NRE term deposits be extended/ closed during the tenure of the deposit?

The period of NRE term deposits can be extended during the tenure of the deposit, but for a period longer than the remaining period of the deposit. The period of the extended deposit shall be a minimum of one year & a maximum of 10 years effective from the date of extension. However no interest is payable if extended before completion of the minimum stipulated period of one year. NRE Term deposits can also be closed prematurely, subject to applicable penal cut. If the deposit has run for a period of less than 1 year, no interest shall be payable.

Can loans be granted to NRI/PIOs in INR against their own NRE/ FCNR deposits?

Yes, loans can be granted to NRI/PIOs as well as to third parties in India against NRE/FCNR deposits without any ceiling subject to usual margin requirements.

Can an NRI/PIO acquire an immovable property in India?

NRI/PIO can acquire immovable property in India other than agricultural land/ plantation property or a farmhouse out of inward remittances as well as from repatriable or non repatriable funds held in his non-resident account. He may acquire an immovable property by way of gift and inheritance also.

Can an NRI/PIO repatriate sale proceeds of immovable property?

An NRI/PIO can repatriate the sale proceeds of immovable property to the extent of Foreign inward remittances or amount drawn from FCNR/NRE account. Excess sale proceeds, if any can be credited to NRO account, which will be eligible for repatriation abroad upto USD1 million per financial year, subject to payment of eligible tax. In case of Residential properties, the repatriation of sale proceeds is restricted to not more than two such properties. If the property was acquired out of Rupee sources/ inheritance/ Legacy, NRI or PIO may remit an amount up to USD 1 million or equivalent per financial year out of the balances held in the NRO account, subject to tax compliance. However this facility is not available, if such inherited property is agricultural/ plantation property or Farm house.

12. Useful links

• Deposits
• Loans
• Remittance facilities
• Consultancy services
• Investment services
• Other Services
• Contact details