Union Bank of India’s Non-Resident External (NRE) account is specifically designed for Non-Resident Indians (NRIs). It allows NRIs to hold and manage their foreign earnings in India in Indian rupees.

With an NRE account, NRIs can freely remit their foreign income, such as salary, investments, or other earnings, to India and convert it into Indian rupees. These funds can be held in the NRE account, and the account holder can freely repatriate both the principal amount and the interest earned back to their foreign country without any restrictions.

NRE accounts offer various benefits, including tax-free interest income, easy repatriation of funds, and the ability to hold and manage foreign earnings in a local Indian bank account. This account is suitable for NRIs who want to maintain their financial presence in India and efficiently manage their foreign income.

An NRI, PIO, or foreign national may open and maintain a Non-Resident Ordinary (NRO) Rupee Account with an Authorized Dealer to carry out legitimate transactions denominated in Indian Rupees that do not involve any violations of the FEMA's rules and regulations.

The funds in an NRO account are maintained in Indian rupees. NRIs can deposit their Indian income into the NRO account and use it for various purposes like making payments, investments, or for meeting expenses in India.

Union Bank of India offers three account options viz. the Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR(B) Account), the Non-Resident (External) Rupee Account Scheme (NRE Account), and the Non-Resident Ordinary Rupee Account Scheme (NRO Account). These accounts cater the needs of NRIs/PIOs/OCIs. Explore our website to discover more about the features, benefits, repatriability, and taxation aspects of each account, empowering you to make informed decisions for your financial needs.

A Double Tax Avoidance Agreement (DTAA), also known as a tax treaty, is an agreement signed between two countries to prevent individuals or businesses from being subject to double taxation on their income. The purpose of a DTAA is to allocate taxing rights between the countries involved. It also eliminates or reduces double taxation, promotes cross-border trade and investment, and provides clarity and certainty regarding tax liabilities for taxpayers.

Under a DTAA, the countries agree on various aspects, such as the definition of taxable income, the rules for determining residency and permanent establishment, the rates of taxation, and the mechanisms for resolving tax disputes. These agreements often include provisions for the exchange of information between the tax authorities of the two countries to prevent tax evasion and promote transparency.