Nomination facility is available to all types of deposit accounts irrespective of the nomenclature used by different banks.

There cannot be more than one nominee in case of joint deposit accounts.

Nomination facility is available only in case of individual depositor and not in respect of persons jointly depositing articles for safe custody.

Non-Resident Indian Means:

A person resident outside India who is a citizen of India i.e.

• Indian citizens who proceed abroad for employment or for carrying on any business or vocation or for any other purpose in circumstances indicating indefinite period of stay outside India.
• Indian citizens working abroad on assignments with Foreign Governments, Government Agencies or International/ Multinational Agencies like United Nations Organisation(UNO), International Monetary Fund (IMF), World Bank etc.
• Officials of Central and State Governments and Public Sector Undertakings deputed abroad on assignments with Foreign Government Agencies/ Organisations or posted to their own offices including Indian Diplomatic Missions abroad.

A person of Indian origin who is a citizen of any other country other than Bangladesh or Pakistan, if

• He, at any time, held an Indian passport or
• He or either of his parents or any of his grand parents was a citizen of India by virtue of Constitution of India or Citizenship Act 1955 (57 of 1955)
• The person is a spouse of an Indian Citizen or a person referred to in sub clause b (i) or (ii) above.

The easiest way of opening an account would be to contact the nearest branch of Bombay Mercantile Co-op. Bank who would gladly assist in fulfilling the required formalities and opening an account. If Bombay Mercantile Co-op. Bank branch is away, then following documents may be sent to the branch where account is desired to be opened :-

Account may be introduced by an existing customer of the branch or may be verified by present banker or by Embassy Officials abroad. Copies of important pages of passport (containing name, signature, birth-date, place/ date of issue, expiry date etc) duly authenticated by Notary Public/ Officials of Indian Embassy. Two passport size photographs with signatures on reverse Remittance for opening an account.

An NRI is free to grant Power of Attorney to a Resident. However, such Power of Attorney is restrictive. The Power of Attorney holder can do local operations and give deposit renewal instructions. Power of Attorney Holder can not instruct to transfer funds abroad.

The Bank may permit payment of deposit before maturity. The rules in this respect are broadly as under:

FCNR / NRE Scheme:

• No interest is payable if the deposit is withdrawn before expiry of minimum maturity of 12 months from the effective date of deposit.
• In other cases, interest is payable at a rate applicable on the date of deposit for the period run or the contracted rates, whichever is less, minus 1 % penalty in respect of NRE Deposits. For FCNR Deposits, interest is payable at a rate applicable on the date of the deposit for the period run minus 1 % penalty. However, if the applicable rate is less than 1%, no deduction will be made from principal amount.

NRO Deposits:

• No interest is payable if the deposit is withdrawn before expiry of 15 days in case of term deposit
• Interest is payable at a rate applicable on the date of deposit for the period run or the contracted rate, whichever is less, minus 1 % penalty.

FCNR / NRE Deposits schemes:

• When renewal instructions are received by the branch where the deposit account is maintained, within 14 days of the due date, renewal with retrospective effect (i.e. from the due date) is permitted.
• The rate of interest payable on the amount of deposit so renewed will be appropriate rate for the period of renewal as prevailing on the date of maturity OR on the date when depositor seeks renewal (i.e. date of renewal) whichever is lower.
• When renewal instructions are received after 14 days from the due date, renewal with retrospective effect (i.e. from the due date) is not permitted. However, simple interest for the overdue period is payable at 4 % p.a. or at minimum rate of interest for the currency prevailing on the date of renewal, whichever is lower.

NRO Deposits:

• Overdue deposits can be renewed with retrospective effect (i.e. from the due date), provided they are renewed for a minimum period of 15 days from the date of renewal.

The accounts of erstwhile Resident Indian are designated as Non-Resident Ordinary (NRO) Accounts. NRIs can also open NRO accounts for collecting their local accruals in India. The rates of interest on domestic deposits are applicable to these accounts. Income Tax is deductible at source on the interest earned.

Remittance/s upto USD 1 Mn. for any purpose per calendar year from the balances in NRO Accounts is permitted subject to payment of applicable taxes. The limit of USD 1 Mn. per year includes sale proceeds of immovable properties held by NRIs/ PIOs for a period of 10 years. In case a property is sold after being held for less than 10 years, remittance can be made if the same proceeds have been held by the NRI/PIO for the balance period.

As per prevailing exchange control regulations, NRI is required to intimate his banker about change in his residential status immediately on returning to India. His Rupee accounts are immediately redesignated as resident Rupee accounts. Further, Rupee Term Deposits are continued at the contracted rate of interest till due date. FCNR deposits are permitted to be continued at the contracted rates of interest till due date. NRIs are also at liberty to keep the funds in US Dollars by opting for Resident Foreign Currency (RFC) accounts.