You have to declare the proceeds to the customs on the Currency Declaration Form (CDF) upon your arrival in India when:
- The amount of foreign currency notes tendered by you exceeds US $5000 or its equivalent.
- Total amount tendered including foreign currency notes and travelers cheque exceeds US $10000 or its equivalent.
If you are visiting India with travelers cheque then you should yourself present as well as discharge them in the presence of an official in the bank where you have the NRE account.
You can use the same to open a Saving, Current, Term deposits as well as Recurring deposits NRE account in India.
The term deposits can be maintained in a bank for the tenure of 1 year to 3 years. You can also open a joint account but the other holder should be a Non-Resident Indian (NRI).
In order to open an NRE account in Indian banks, you have to visit the website of the bank and download the account opening form. Next, you have to fill up the form, put your signature and get it attested by anyone mentioned below:
- Your Bank.
- Embassy of India.
- Public notary.
- Any person known to the bank.
You have to submit the form to the bank along with relevant documents and remittances. The documents that are required to be submitted include:
- Copy of passport.
- Copy of visa.
- Latest Overseas bank statement in original, latest overseas telephone/electricity bill in original as residential proof.
Click here to read What is the difference between a NRE and NRO account?
The funds in your NRE account are freely repatriable. They are also fully exempted from wealth tax as well as income tax in India.