Banking · Redesignation of NRI Accounts upon Returning to India
When an NRI returns to India permanently, which of the following describes the correct operational transition required for their existing NRE Savings, NRE Fixed Deposit, and FCNR(B) accounts under FEMA guidelines?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only the FCNR(B) deposit can stay in foreign currency; the NRE FD must be broken and converted to a Resident FD.
- 2The customer can retain NRE status for up to three years after returning under the 'Transitional NRI' clause.
- 3NRE Savings must be converted immediately, but NRE and FCNR(B) Fixed Deposits can run until maturity at the contracted rates.✓
- 4All NRE and FCNR(B) funds must be immediately converted to resident Indian Rupee accounts to avoid FEMA penalties.
Correct answer
NRE Savings must be converted immediately, but NRE and FCNR(B) Fixed Deposits can run until maturity at the contracted rates.
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