ACCOUNT OPENING INFORMATION BOOKLET
Please retain this booklet for your future reference
A RUPEE CHECKING ACCOUNT
TYPES OF ACCOUNT
The type of account you choose depends on your need and whether your earnings are from India or overseas. There are two basic types of
transactional accounts – Non-Resident External (NRE) and Non-Resident Ordinary (NRO).
The table below details some features of these two accounts.
Key Features
NRE Rupee Checking Account
NRO Rupee Checking Account
What is the basic purpose of these
accounts?
Both NRE and NRO Rupee Checking Accounts allow a Non-Resident Indian to easily manage all their financial
obligations in India
Currency of Account
Balances in account are held in Indian Rupees
Rate of Interest
4% per annum for Savings Account Only
Provision for a Mandate
A family member resident in India can be authorized to operate the account on behalf of the account holder
Debit-cum-ATM Card
Debit-cum-ATM Card for use anywhere in India and
Debit-cum-ATM Card for use in India only
Worldwide
Source of Funds
• Foreign Currency remittances from overseas
• Foreign Currency remittance from overseas
• Funds transfer from any other NRE or FCNR account in • Funds transfer from any NRE, NRO FCNR or domestic
India
bank account
• Interest earned on this account is taxable in India. Tax is
Tax on Interest Earned
currently deducted at source at 30% + CESS when the
• Interest earned is exempt from Income Tax in India
( P l e a s e s p e a k t o yo u r Ta x
interest accrues on your deposit
• However, Interest earned may be subject to tax in your
Consultant for tax obligations in
• In addition to the interest taxed in India, the interest
country of residence
your country of residence)
earned may also be subject to tax in your country of
residence
Repatriation
Joint account holder
• Repatriation needs to be in adherence to the guidelines
• Repatriation can be easily done for both Principal and
of the Reserve Bank of India and is limited to equivalent
Interest earned
of US $1 million per financial year for all qualified
• If you wish to repatriate funds, we require written
balances
instructions with the wire details for executing this • Additionally, you will need to provide documents as per
the guidelines issued by the Reserve Bank of India
repatriation
depending on the source of funds of the account
Only with Non Resident Indians
Only with Non Resident Indians
As per the regulatory guidelines, NRI/PIO needs to open and designate a separate bank account for undertaking transactions under the “Portfolio
Investment Scheme”. I/We agree that I/We will not use any other bank account for carrying out transactions eligible under the “Portfolio
Investment Scheme” (e.g. purchase and sale of shares and convertible debentures of listed Companies on a stock exchange in India).
B INTEREST PAYMENT ON RUPEE CHECKING ACCOUNTS
1.
Savings Account
Interest is calculated on the daily balances maintained in the account at an interest rate specified by the bank. The interest earned will be
credited into your account at half yearly intervals at the end of March and September each year. In the event you close your account prior to
interest credit to your account, the accrued interest will be credited to your account at account closure.
Illustration of interest earned on Savings Account:
I
On ` 1,00,000 balance (1st June – 30th June) – Interest earned = 4% X 30/365 X ` 1,00,000 = ` 320.88
ii. On ` 1,00,000 balance (1st June – 20th June) and ` 1,50,000 balance (21st June – 30th June) – Interest earned = (4% X 20/365 X ` 1,00,000)
+ (4% X 10/365 X ` 1,50,000) = ` 219.20 + ` 164.40 = ` 383.60
2. Current Account
As per current Reserve Bank of India regulations, no interest is offered on Current Accounts.
VER 8.3/NR/NA/ALL/RCA-INFO/WPC/09-16
1
Modified Date: 14-Sep-2016
C
DEPOSIT ACCOUNTS
TYPES OF DEPOSIT ACCOUNTS
There are three types of Deposit Accounts: Non-Resident Ordinary (NRO), Non-Resident External (NRE) and Foreign Currency Non-Resident.
The table below details some of features of these three Deposit Accounts.
Please visit www.citinri.com for the current interest rates on Deposit Accounts
Key Features
FCNR Deposit
NRE Fixed Deposit
NRO Deposit
Available currencies
• British Pound
• Euro
•Japanese Yen
• Australian Dollar
• Canadian Dollar
• United States Dollar
Indian Rupees
Indian Rupees
Minimum amount of deposit
US$ 2,000 or equivalent
` 80,000
` 80,000
Tenure
1 to 5 years
1 to 5 years
7 days to 5 years
Interest Rates
Fixed (Simple Interest for tenure of 1
Fixed (Choice of simple or compound Fixed (Choice of simple or compound
year and Compound for tenures
interest)
interest)
greater than 1 year)
For Compound Interest- Interest is
compounded every 90 days and paid
on maturity
For Simple Interest – Interest is
calculated at applicable rate and paid
quarterly
For Compound Interest – Interest is
compounded every 90 days (for
tenures greater than 90 days) and
paid on maturity
For Simple Interest – Interest is
calculated at the applicable rates and
paid quarterly (for tenures greater
than 90 days)
Tenures less than 90 days offers only
Simple Interest and Interest is
calculated at applicable rate and paid
on maturity
Payment of interest
For deposits of tenure great than 1
year interest is compounded every
180 days and paid on maturity.
For deposits of tenure exactly 1 year,
interest is paid on maturity without
compounding.
Deposit renewal
•
Renew the deposits for the same tenure as original deposits at interest rate applicable on the date of renewal
•
Pay the maturity proceeds into linked Rupee Checking Account or as per depositor instruction
The following choices are available to the depositor:
Repatriation can be easily done for
both Principal and Interest earned.
Repatriation
Source of funds
If you wish to repatriate funds, we
require written instructions with the
wire details for executing this
repatriation
Repatriation needs to be in adherence
to the guidelines of the Reserve Bank
Repatriation can be easily done for of India and is limited to equivalent of
both Principal and Interest earned US $1 million per financial year for all
through your NRE Rupee Checking qualified balances
Account
The transaction will be effected through
If you wish to repatriate funds, we your NRO Rupee Checking Account
require written instructions with the
wire details for executing this Additionally, you will need to provide
documents as per the guidelines issued
repatriation
by the Reserve Bank of India depending
on the source of funds of the account
Foreign Currency Remittance from overseas
Funds transfer from any other NRE or FCNR account in India
Foreign Currency Remittance from
overseas
Funds transfer from any other NRE,
NRO, FCNR or domestic bank account
Interest earned on this account is
Interest earned is exempt from Interest earned is exempt from taxable in India. Tax is currently
deducted at source at 30% + cess when
Income Tax in India.
Income Tax in India.
(Please speak to your Tax
the
interest accrues on your deposit
However, Interest earned may be However, Interest earned may be
Consultant for tax obligations in
subject to tax in your country of subject to tax in your country of In addition to the interest taxed in India,
your country of residence)
residence
residence
the interest earned may also be subject
to tax in your country of residence
Tax on interest earned
D
PRE-TERMINATION OF DEPOSITS
PRE-TERMINATION – Withdrawal of a deposit prior to the original maturity date
• If you pre-terminate a deposit before the minimum tenure of the deposit, NO interest will be paid.
• The minimum tenure for FCNR and NRE Deposits is 1 year. Hence if you pre-terminate these deposits before 1 year, you will not earn any
interest.
• The minimum Tenure for NRO Deposit is 7 days. If you pre-terminate this deposit before 7 days, you will not earn any interest.
For all pre-terminations, the original deposit is treated as two deposits – one is the amount withdrawn and the other is the amount remaining in
the deposit.
The interest rate paid on the withdrawn amount will be either:
• The interest rate at the time of original deposit booking OR
• The applicable rate of interest for the new tenure and amount as on the date of booking the original deposit
• The lower interest rate between the above mentioned interest rates, less a penalty of 1% will apply.
The Interest rate applicable on the remaining amount will be:
• The applicable interest rate for this amount and tenure of original deposit.
• This rate may be the same as the original deposit or lower.
VER 8.3/NR/NA/ALL/RCA-INFO/WPC/09-16
2
Modified Date: 14-Sep-2016
Illustration of interest paid in case pre-termination prior to original maturity date, but after the minimum tenure of a deposit:
Original Deposit
Original Principal Amount
` 100,000
Original booking date
Original maturity date
June 1 2011
May 31 2013
Original tenure (days)
730
Original Interest rate
Maturity Amount
9%
` 118,810
Deposit Pre-Maturely Withdrawn
Deposit Remaining
` 60,000
Amount withdrawn pre-maturely
` 40,000
Amount remaining
Original booking date
June 1 2011
Pre-mature withdrawal date
May 31 2012
June 1 2011
May 31 2013
Maturity date of Deposit Remaining
Pre-mature withdrawal tenure (days)
365
730
Remaining Deposit tenure (days)
Applicable interest rate (This is the rate on Jun
1st 2011 for a 365 day deposit of ` 60,000)
8%
Pre-Payment Penalty
1%
Applicable interest rate on Remaining Deposit
(This is the rate on Jun 1st 2011 for a 730 day
deposit of ` 40,000)
8%
Effective interest rate
7%
8%
Revised Amount (Paid out or Balance)
` 64,200
` 46,656
The maturity amounts shown in the illustration above may be different based on Taxes Deducted at Source (TDS), if applicable.
E
CHANGE IN RESIDENCY STATUS OF A CITIBANK, N.A. INDIA ACCOUNT HOLDER
When a resident Indian leaves India for any country (other than Nepal or Bhutan), for employment, business or immigration or for any
other reason for an uncertain period of time, the Resident Indian will be treated as Non Resident Indian and the bank account in India will
be designated as a Non Resident Ordinary (NRO) Account.
Consequently, there would be some or all of the following changes to your Citibank India Account or Citibank Suvidha Account in India:
Description
Changes
Account Number and Branch
No change
Interest Rate on Savings Account
No change
Home Loan Payments and other
Standing Instructions from your Citibank No change
Account or Citibank Suvidha Account
Check Book
Your existing checks can still be used. However, we will issue you a new Check Book for your NRO Account.
Tax Deduction at Source (TDS)
Interest earned on Balances in Non Resident Ordinary Account is subject to TDS
Deposits
Deposit Accounts will be closed and principal and interest (if applicable) will be credited to your Citibank NRO Account
Citibank Money Multiplier Account
This account will be closed and balances, if any, will be credited to your Citibank NRO Account
Employee Reimbursement Account
This account will be closed and balances, if any, will be credited to your Citibank NRO Account
ATM/Debit Cards
These Cards will no longer be valid and new ATM/Debit Card and ATM PINs will be issued for your NRO Account.
You will not be able to use your new ATM Card for cash access at International ATMs.
Credit Card & Loans
You will need to pay off your Total Balance on your Card including all pre-termination fees for Loan closures. Upon
clearing your dues, your Credit Card will be closed. Balances from your Citibank Account or Citibank Suvidha Account
may be used to clear your Credit Card or Loan balances as per the terms and conditions of your Credit Card or Loan.
Overdraft Facility
The Overdraft Facility on your Citibank Account or Citibank Suvidha Account will be closed. Balances from your
Citibank Account or Citibank Suvidha Account may be used to clear your Overdraft amounts if any, as per the
terms and conditions of your Overdraft Facility
An Overdraft Facility is not available on your NRO Account
Mandate Account
Your mandate associated with your Citibank Account or Citibank Suvidha Account will be closed.
The status recorded with the asset management companies need to be changed from Domestic to NRO. Post the
status change, the DMF accounts can be linked to the converted domestic accounts
Along with your application form, please include a letter addressed to Citibank, requesting to change the tax
status of all the holdings in your Mutual Funds account to NRO
India Mutual Funds
Transactions on your Mutual Funds, through Citibank Online will be restricted post conversion of your account to NRO.
If you are relocating to the United States, please select from any of the options below:
•
Sell all the existing units of the mutual funds held in your account with Citibank N.A. India.
•
Submit a request to change the broker code from Citibank N.A.India to a third party mutual fund distributor.
Please get in touch with your relationship manager or contact a Citibank India branch and request them for the
broker code change format.
DEMAT Account
If you wish to close your DEMAT Account, please visit a Citibank branch or ask a Citibank NRI Relationship Manager for assistance.
Brokerage Account
You will need to sell equities in your brokerage account and this account will be closed. Sale proceeds will be
transferred to your Citibank India Account or Citibank Suvidha Account.
VER 8.3/NR/NA/ALL/RCA-INFO/WPC/09-16
3
Modified Date: 14-Sep-2016
F
SCHEDULE OF CHARGES
Account Type
Preferred Rupee Checking
Account
Rupee Checking Account
CitiGold Rupee Checking Account
Monthly Balance Requirements
Average Monthly Relationship
Balance across Products for
qualification
Less than ` 200,000
Average Monthly Relationship
Balance requirement
` 40,000
Monthly Charges
Please Note: You must meet the
Average Monthly Relationship
Balance across all qualifying
products
` 200,000 - $ 100,000 (Equivalent) Greater than $ 100,000 (Equivalent)
` 40,000
If you do not meet the Monthly
Relationship Balance Requirements:
1% of the shortfall^ or `400,
whichever is lower.
`40,000
If you do not meet the Monthly
If you do not meet the Monthly
Relationship Balance Requirements: Relationship Balance Requirements:
1% of the shortfall^ or `400,
1% of the shortfall^ or `400,
whichever is lower.
whichever is lower.
ATM/Debit Card related Charges
Annual Membership Fee
Free
Free
Free
Replacement Fee for Lost or Stolen
Card
` 100
Free
Free
ATM PIN Reissue Fee
Free
Free
Free
Transaction Based Charges
Free online and Citiphone.
` 2.50 per ` 1,000 for drafts payable at
Citi Locations; ` 3 per ` 1000 for
drafts payable at other locations
Rupee Demand Draft
Free
` 100
Draft Cancellation
Outward Remittances - Foreign
Currency Check/ Draft / Wire
Free
Free
Deposits - $30 per transfer. Savings
accounts - Free. Service tax will be
applicable
Free
Deposits - $30 per transfer. Savings Deposits - $30 per transfer. Savings
accounts - Free. Service tax will be accounts - Free. Service tax will be
applicable
applicable
Re-order of Check Book - Citiphone &
Branch
` 100
Free
Free
Duplicate Physical Statement request
- Citiphone & Branch
` 100
Free
Free
Free transactions
1
ATM Withdrawal and balance enquiry in India
ATM Withdrawal and balance enquiry at ATMs outside India. Please note the Bank that owns the ATM might charge you an access fee
#
NEFT/RTGS Transfers
Inward Remittances (Please note: A Service Tax will be applicable)
Issuance and Encashment of Travellers Checks at a Citibank Branch in India (Please note: A Service Tax will be applicable)
Request for a duplicate online statement of your account
Re-order a check book online
Utility Bill Payments in India through Citibank Online
Re-activation of an inactive account
Account Closure
As per RBI communication, cash limit of ` 10,100/- per withdrawal will be permitted at non Citibank ATMs.
#
The minimum transfer amount for RTGS is 2 lakhs.
1
Example: If your actual average NRV for a month is `30,000 you will be charged 1% of ` 10,000 i.e. ` 100.
Service Tax (Includes Swachh Bharat Cess and Krishi Kalyan Cess)
Please note that as per Government of India regulations, a Service Tax will be charged on all foreign currency conversions, interest and fees and other
charges. This Service tax is payable to the Government of India and will be charged to your account. This is subject to change as per the regulations of
the Government of India.
Ÿ 0.14% + 0.005% (Swachh Bharat Cess) + 0.005% (Krishi Kalyan Cess) of the gross amount of currency converted for an amount up to ` 100,000
subject to minimum of ` 35+ ` 2.50
Ÿ ` 140 + ` 5 (Swachh Bharat Cess)+ ` 5 (Krishi Kalyan Cess) and 0.07% + 0.0025% (Swachh Bharat Cess)+ 0.0025% (Krishi Kalyan Cess) of gross
amount of currency converted for the amount exceeding ` 100,000 and up to ` 10,00,000
Ÿ ` 770 + ` 27.5 (Swachh Bharat Cess) + ` 27.5 (Krishi Kalyan Cess) and 0.014% + 0.0005 % (Swachh Bharat Cess) + 0.0005 % (Krishi Kalyan Cess) of
gross amount of currency converted for the amount exceeding ` 10,00,000, subject to maximum of ` 7000+ ` 500
G
AVERAGE MONTHLY RELATIONSHIP BALANCE (RB) FROM QUALIFYING PRODUCTS
Example of RB from qualifying products
Qualifying products Balance
a) Savings/Current Account
b) Another linked Savings/Current account
Monthly Relationship balance from qualifying
products
Average Monthly Relationship (`)
Description
50,000
140,000
Average daily balance of the calendar month is
calculated based on the sum of daily end of day
balance divided by the total number of days in the
month
200,000
a+b+c
10,000
For Non US customers - investment products like balance in domestic mutual fund, 25% of demat balance, insurance premium and outstanding principal
of home loan are also considered in qualifying products
This product/service is offered by branches of Citibank N.A. in India. © 2016 Citigroup Inc. Citi and Arc Design are registered service marks of Citigroup Inc. or its affiliate used and registered throughout the world.
VER 8.3/NR/NA/ALL/RCA-INFO/WPC/09-16
4
Modified Date: 14-Sep-2016