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Time of India
2 days ago
- Business
- Time of India
Rupee fall makes diaspora's foreign currency deposits attractive
Chennai: The weakening rupee was among the reasons that made foreign currency deposits attractive for NRIs. The net inflow under Foreign Currency Non-Resident (B) Account (FCNR(B)) increased by 11% YoY from $6.4 billion in FY24 to $7.1 billion in FY25. It comes after NRIs pulled out their deposits earlier, turning the category (FCNR(B)) negative during 2020–21 and 2021–22. Data available in RBI's annual reports shows that FCNR (B) recorded a net outflow of -$3.8 billion and -$3.6 billion during two Covid years of 2020–21 and 2021–22, respectively. However, its net inflow revived during 2022-23 and stood at $2.4 billion. In FY25, the net inflow under non-resident deposits basket comprising Non-Resident External (Rupee) Account (NRE), Non-Resident Ordinary (NRO) Account and FCNR (B) was at $16.2 billion, the highest in the past 11 years. Of this, FCNR (B) share was 44%. RBI raising the interest rate caps on FCNR (B), allowing banks more freedom to offer better returns also fuelled its growth. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai FCNR(B) account is a type of fixed deposit account designed specifically for NRIs and Persons of Indian Origin (PIOs). Its unique feature is that money is held in international currencies such as US Dollar (USD), British Pound (GBP), Euro (EUR), Australian Dollar (AUD), Canadian Dollar (CAD), Swiss Franc (CHF), and Japanese Yen (JPY), which protects depositors from exchange rate fluctuations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Upexi's $100M Solana Investment: What It Means for Shareholders bullseyealerts Read More Undo While the duration of term deposits ranges from 1 year to 5 years, interest earned on FCNR(B) accounts is tax-free in India. Private sector South Indian Bank, which has a sizeable NRI customers base particularly in the Gulf countries, says it has experienced a steady growth in NRE, NRO, and FCNR(B) accounts over the last three financial years at 3%, 5% and 6%, in FY23, FY24, and FY25 respectively. "The relative strength and stability of foreign currencies such as the US dollar further incentivized NRIs to invest in these accounts. Additionally, the depreciation of the Indian Rupee enhanced the appeal of foreign currency deposits as a hedge against exchange rate risk," said Biji S S, senior general manager and head of branch banking, South Indian Bank. Tanvi Kanchan, head - NRI business & strategy, Anand Rathi Shares and Stock Brokers said, "Looking ahead to FY26, inflows are expected to rise further. This is because interest rates in India are still relatively high, and if rates fall in the US or other developed markets, India will become even more attractive for NRIs seeking better returns," Kanchan added.


Mint
3 days ago
- Business
- Mint
Personal loans for NRIs in India: Interest rates, loan tenure, and top bank options
Despite contemporary international migration, many Non-Resident Indians (NRIs) continue to hold deep emotional and financial ties to India. Personal loans for NRIs in India are a great way to cover unexpected expenses, remodel their homes, or for a family gathering. Let's take a look at the options, eligibility, documentation required, and frequently asked question: Can an NRI apply for a personal loan in India? Yes, NRIs can apply for personal loans in India, but there will be limitations. NRIs cannot apply for personal loans from all banks and NBFCs and the eligibility requirements may be stricter than those for Indian citizens. Banks Max. loan amount Interest rate Processing fees Loan tenure HDFC Bank Up to 40 lakhs 10.9% - 24% ₹ 6500 Up to 6 years Axis Bank Up to 10 lakhs 10.49% - 22% Up to 2% Up to 6 years Kotak Mahindra Bank Up to 35 lakhs 10.99% - 16.9% Up to 5% Up to 6 years ICICI Bank Up to 50 lakhs 10.8% - 16.5% Up to 2% 1 - 6 years Yes Bank Up to 40 lakhs 11.25% - 21% 0% - 2.5% Up to 5 years IndusInd Bank Up to 50 lakhs 10.49% - 26% 10.49% - 26% 1 - 7 years IDFC First Bank Up to 10 lakhs 10.7% - 23.9% Up to 2% Up to 6 years Standard eligibility requirements include the following; however each lender has its own variation on the terms: Residency: The borrower must be an Indian national who resides outside India. The borrower must be an Indian national who resides outside India. Age: The borrower must be between the ages of 21 and 60. The borrower must be between the ages of 21 and 60. Employment: The borrower must work or have been employed in a reputable company overseas for a minimum of six months to one year in the past. The borrower must work or have been employed in a reputable company overseas for a minimum of six months to one year in the past. Income: The borrower must have consistent monthly income (generally greater than ₹ 25,000 or the equivalent in another currency). The borrower must have consistent monthly income (generally greater than 25,000 or the equivalent in another currency). Co-applicant: Many lenders require an Indian resident co-applicant. The following must be provided as information, but lender requirements may vary: Current passport and visa. Evidence of residency overseas. Current or most recent pay slips and employment agreement. Statement of NRE/NRO accounts. PAN Card. Identity and address proof of co-applicant in India. Quick access to funds for personal or family needs. Useful for education, medical emergencies and home renovations. NRE/NRO accounts can be paid back via EMIs. Maintains an Indian credit profile that can be useful for future loans. Ensure the co-applicant has a good credit score. Compare the offers of different banks. Be aware of the prepayment and foreclosure fees. Go through the finer print regarding processing fees and the way interest is calculated. In conclusion, for NRIs, personal loans in India can be a fast and flexible method of accessing funds for personal or family needs without the necessity of disposing of assets. With the right bank and co-applicant it can be an easy approval even though the process may involve a bit more paperwork. Disclaimer: Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.


Mint
6 days ago
- Business
- Mint
Guide for NRIs for filing FY25 income tax returns
MUMBAI : For non-resident Indians (NRIs), filing income tax returns (ITRs) in India can seem complex. But with increased digital scrutiny and evolving compliance requirements, it is more important than ever to get it right. With the ITR deadline for FY25 (AY26) set for 15 September 2025, NRIs should begin preparing well in advance. Mint spoke to tax experts to learn what's required this tax season, from documents to dos and don'ts. Determining residency To qualify as an NRI for income tax purposes under the Income Tax Act, you must have stayed in India for less than 182 days during the relevant fiscal year. Additionally, your stay in the country must be less than 60 days during that fiscal year or less than 365 days in total during the four preceding fiscal years. If you meet these conditions, you will be treated as an NRI for that fiscal year. Also Read: NRI taxation: How to claim special tax concessions There is also a 'deemed residency" rule. If you are an Indian citizen who earns more than ₹15 lakh from Indian sources in a fiscal year and are not liable to pay tax in any other country, you will be treated as a Resident but not ordinarily resident (RNOR), even if your physical presence in India does not meet the standard residency thresholds. Your residency affects tax liability, Double Taxation Avoidance Agreement (DTAA) eligibility, and disclosure requirements. It's important to track your travel using passport stamps or flight records, especially if your stay is near the threshold. The first step is to assess whether you qualify as a resident or non-resident for tax purposes. 'You should carefully determine your residential status based on the number of days you stay in India and keep your passport handy as documentary proof," explained Laxmi Ahirwar, director, & Co. Your residential status should be updated on the income tax portal accordingly. Important identity documents include PAN card, passport (including immigration stamps), and visa or overseas residence proof. 'Your registered email and mobile number on the portal should match your bank records to ensure smooth refund processing," pointed out Ajay Vaswani, chartered accountant and NRI tax advisor. Full-year bank statements from 1 April 2024 to 31 March 2025 for NRO, NRE, and Indian savings accounts should be collected. While interest from NRO accounts is taxable, interest from NRE and FCNR accounts is exempt under specific FEMA conditions. 'Even if exempt, these incomes must be reported for consistency with AIS and TIS," Ahirwar added. Also Read: Golden tax window for NRIs: What RNOR means and how to use it The annual information statement (AIS) is a detailed record of your financial transactions as reported by banks, employers, mutual funds, and other entities to the income tax department. It includes income from salary, interest, dividends, securities transactions, and foreign remittances. The taxpayer information summary (TIS) is a simplified snapshot of this data, offering category-wise totals like salary, capital gains, or business income. It helps taxpayers cross-check figures easily while preparing their return. For NRIs, reviewing AIS and TIS is essential. Any mismatch between your return and these records can raise compliance flags. If there are errors, you can submit a 'disagreement" for specific entries directly on the income tax portal to clarify and avoid issues. Other documents to keep include rent receipts, property tax payments, tenant details, sale and purchase deeds, capital gain reports, and investment proofs. To claim treaty relief under the DTAA, a tax residency certificate (TRC) and Form 10F are essential. 'This is a mandatory pre-condition for claiming DTAA relief now that manual filing of Form 10F has been disabled," Vaswani noted. NRIs must use ITR-2 to file their returns. 'ITR-1 is not applicable to NRIs under any circumstances," said Vaswani. Your PAN must be operative, and your bank account should be validated on the portal to avoid refund delays. If your total income in India exceeds ₹1 crore, then disclosure of Indian assets and liabilities under Schedule AL becomes mandatory. On this, Ahirwar clarified, 'There's no need to disclose foreign assets—even if your income is above ₹1 crore." Also Read: New US remittance tax proposal: What it means for NRIs sending money to India Ensure proper tax rates are applied. 'Dividend income, for instance, is taxed at a flat 20% under Section 115A, unless a DTAA benefit is availed for a lower rate," Vaswani explained. Ahirwar also reminded that 'Section 87A rebate is not applicable to an NRI, so compute tax accordingly." When determining your tax residency, both arrival and departure days count as days spent in India. Ahirwar reiterated: 'Both the day of arrival and the day of departure count as a day in India." Additionally, accurate income reporting is critical. 'Don't assume that if TDS is deducted and shown in Form 26AS, you're in the clear. You still have to report that income," Ahirwar clarified. Vaswani also advised NRIs to regularly reconcile their income with AIS, TIS, and Form 26AS. 'Reconcile income with AIS, TIS, and Form 26AS before filing. Any mismatch should be formally disagreed with on the portal." Another common error is assuming that filing is unnecessary when income is below the basic exemption limit. But failure to file, especially when Form 26AS or AIS reflects transactions, may lead to unnecessary scrutiny or compliance notices.


Time of India
25-06-2025
- Business
- Time of India
IDFC FIRST Bank Enables UPI for NRIs in 12 Countries Using International Numbers
Mumbai: In a move to ease digital transactions for overseas Indians, IDFC FIRST Bank has enabled its NRI customers in 12 countries to make UPI payments using their international mobile numbers. The feature, launched on Tuesday, allows real-time, INR-denominated payments directly from NRE or NRO accounts through the bank's mobile app or any UPI-enabled platform, without the need for an Indian SIM card or incurring transaction fees. The facility is available to IDFC FIRST Bank customers residing in Australia, Canada, France, Hong Kong, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, UAE, UK, and the US. NRIs can send and receive money using UPI IDs, QR codes, or mobile numbers, making everyday financial transactions like bill payments and fund transfers quicker and more convenient. 'This service empowers our NRI customers to transact in India with the same ease as domestic users,' said Ashish Singh, head – retail liabilities at IDFC FIRST Bank. 'Our aim is to simplify banking, regardless of geography.' This development comes after the National Payments Corporation of India (NPCI) issued a circular in Jan 2023 allowing UPI access for NRIs using international mobile numbers. Member banks were mandated to implement the feature by Apr 30, 2023. Initially, the facility was permitted in 10 countries including the US, UK, Singapore, and UAE, later expanding to include others like France and Malaysia. T he accounts used must be KYC-compliant, and all transactions must follow RBI and FEMA regulations. Banks are also responsible for conducting anti-money laundering and compliance checks. With this move, IDFC FIRST Bank joins other major banks like ICICI Bank, HDFC Bank, Axis Bank, and Federal Bank in rolling out UPI access for NRIs. The facility eliminates the need for NRIs to retain an Indian mobile number, significantly lowering the cost and complexity of managing finances from abroad. This initiative is part of the bank's broader digital-first approach, which has helped it grow its customer base to 35.5 million. The bank's mobile app, which ranks among the top globally for customer experience, plays a key role in delivering secure, seamless digital banking services to users worldwide. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
25-06-2025
- Business
- Business Standard
IDFC FIRST Bank launches UPI for Indians in 12 countries: How service works
IDFC FIRST Bank has rolled out UPI services for Indians in 12 countries, enabling them to use the digital platform to make payments in India without needing domestic SIM cards or incurring any transaction charges. Diaspora members can use the service by linking their international mobile numbers to NRE/ NRO accounts in India. 'Our vision has always been to simplify and enhance banking, making it accessible no matter where our customers are located,' said Ashish Singh, head of retail liabilities at IDFC FIRST Bank, in a press statement. How it works Using the IDFC FIRST Bank app, NRIs can: Send and receive money using QR codes, UPI IDs, or mobile numbers Pay Indian utility bills or transfer funds to friends and family Complete transactions instantly with zero fees UPI for NRIs: Log in to IDFC FIRST Bank app Link your NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account Create a UPI ID and start paying This move follows a decision by the National Payments Corporation of India, which operates UPI (Unified Payments Interface), to extend the digital payments service to NRIs by using international mobile numbers. The feature is live for Indians living in Australia, Canada, France, Hong Kong, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, UAE, UK, and USA. Other banks and apps also support UPI for NRIs A clutch of other Indian banks already offers this facility. These include State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, among others, according to the NPCI's official list of 'UPI for NRIs - Live Members'. Popular UPI apps that support international mobile numbers for NRI transactions include: BHIM PhonePe FedMobile (Federal Bank) iMobile (ICICI Bank) BHIM IndusPay (IndusInd Bank) SIB Mirror+ (South Indian Bank) BHIM AU (AU Small Finance Bank) These apps allow NRIs to access UPI from abroad as long as the payments are for transactions within India. With no requirement for an Indian SIM and zero transaction charges, UPI for NRIs adds convenience, security, and cost-effectiveness to international banking. Transactions are settled in Indian rupee and do not attract foreign exchange fees, making it ideal for regular India-based payments. For those without NRE/NRO accounts, NPCI's UPI ONE WORLD initiative offers prepaid UPI wallets for international visitors to India, another step toward globalizing India's digital payments system.