Nrk Sandesham May 2013

7/28/2019 Nrk Sandesham May 2013

1/6

1

Recent developments

NRK SandeshamWherever you go we are there . . .

A monthly news letter from,

NRI Services, State Bank of India,

Local Head Office, Trivandrum

: [email protected]

: 0471 2336383, 6549966

: + 91 9447778606 Volume: III Issue No. : 2 May 2013

The Reserve Bank cut the Bank Rate by 0.25 percent to 7.25 per cent and kept the liquidity

enhancing cash reserve requirement unchanged.

The RBI in its annual monetary policy statement

said there would be modest improvement in the

country's economic growth to 5.7 per cent in the

current fiscal, as against the decade's low of 5 per

cent in FY 2012-13.

A house-to-house survey of Non-ResidentKeralites (NRKs) is under way in Kerala to create

a thorough data bank for formulating policies for

welfare of thousands of Malayalis working abroad,

mostly in the Gulf countries. The exercise, which

began on May 1 along with the sixth economic

census of the Central Statistical Organisation, will

cover the entire household in the length and

breadth of the state to enumerate the exact number

of people working abroad and also the expatriates.

The survey is being conducted by the Bureau of

Economic and Statistical Department, which have

fanned its enumerators in all parts of the state to

completed it by mid-June.

SBI has entered into Rupee Drawing Arrangement(RDA) with Redha Al Ansari Exchange

Co,(RAAEC), UAE and Lari Exchange Co.,(LEC), Abu Dhabi, UAE. Both the exchange

houses has been authorised to send remittances

through our Speed Remittance product SBI

Express with immediate effect. Under this

agreement :

a) Direct credit to the beneficiarys account willbe effected wherever beneficiary is

maintaining account with a branch of SBI.

b) Wherever the beneficiary is maintaining anaccount with a branch of any other bank, creditwill be effected through NEFT (National

Electronic Fund Transfer).

Address of Exchange houses: Redha Al Ansari Exchange Co., (RAAEC), UAE

605, Al Masaraf Towers, Baniyas Road, Deira,Dubai, P.O Box:8828,UAE.

Lari Exchange Co. P.O. Box: 988,Liwa Street, Abu Dhabi, UAE.

The State Bank of India has raised $1 billion froman overseas bond sale. The five-year unsecurednotes denominated in US dollars issued bythe London branch of SBI and will carry a couponof 3.25 per cent (US Treasury plus 255 basispoints).

State Bank of India has been conferred theNational Award 4th consecutive year by KVIC,

Ministry of Micro, Small and Medium Enterprises(MSME), Govt of India, for the outstandingperformance in implementation of Prime Minister'sEmployment Generation Programme (PMEGP)Scheme at national level for the year 2012.

New SBI Branches opened in Kerala

during April 2013No. Branch name email id District

1 Poonkunnam [email protected] Trichur

2 Olari [email protected] Trichur

State Bank of India Home Loan customers who arepaying higher rate of interest at present canswitchover to current lower rate by paying anominal fee of 0.56% w.e.f 21st September 2012

Customer Lounge of our recently opened NRI Pathanamthitta Branch

Editorial TeamTeam Leader:Shri. Akella.V.Prasad, DGM (PBBU & NRI)

Our Editorial Team:

Smt. Smitha S Nair -Chief Manager & Nodal Officer (NRI Services)Shri. Balakrishnan P - Chief Manager (PBBU)

Shri Lalson Jacob - Assistant Vice President (PBBU)
mailto:[email protected]:[email protected]


2/6

2

NRI Quiz -2

1. The Foreign Investment Promotion Board(FIPB) on 6 March 2013 cleared theinvestment proposal of which Malaysian

budget carrier to launch the new airlinealong with Tata Group and Arun Bhatia'sTelestra Tradeplace?

a) Tiger Airways b) Jetstar c) Airasia2. Can NRIs make investments in non-convertible debentures of Indian companies?

a)Yes b) No c) if authorised by the RBI

3. PIS stands fora) Portfolio Investment Services b) Product Investment Servicesc ) Portfolio Investment Scheme

4. Can Power of Attorney holder credit proceeds of foreign currency notes/bank notes and travellerscheques to the NRE accounts?:

a) Yes b) No5. NRIs cannot invest in

a) Units of domestic mutual funds b) Units of Money Market Mutual Funds c) NationalPlan/Savings Certificates d) Public Provident Fund

Answers in page4

FCNR (B)- ACCOUNT & FCNR (B) PREMIUM ACCOUNT

Foreign Currency Non Resident bank account (FCNR) account are those account wherein a Non-residentIndividual of Indian nationality or Indian Origin can maintain a Fixed Deposit in select Foreign Currencyand earn regular interest on the same. For those NRIs sending money across to India, the possibility oforeign exchange risk exists, by way of conversions done at the time of investment and again at the time

of repatriation. To beat such risks, the FCNR deposit is an ideal option.

FCNR deposits could be maintained in US Dollar, British Pounds, Euros, Japanese Yen, CanadianDollar, Australian dollar, Swiss Frank (CHF), Danish Krone(DKK), New Zealand Dollar (NZD),Swedish Krone(SEK)

Minimum 1 year to Maximum 5 year The principal and the interest earned on FCNR deposit is fully repatriable. Minimum deposit USD 1000 or equivalent. Rupee Loan can be taken against the security of FCNR deposits. SBI NRI Trivandrum Branch is

authorized to give demand loan in Foreign currency against FCNR Deposit .


3/6

3

FCNR(B) Premium Account

The FCNR(B) Premium Account combines the benefits of a FCNR (B) deposit with Forward Coverto give attractive return to the depositor. The features of FCNR (B)-Premium Account are :- Deposit Tenor: 1 year. Minimum deposit: USD2000/GBP2000/EUR2000/AUD2000/CAD2000/JPY200000. FCNR (B)- Premium Account can be opened by

(i) Conversion of existing balance of NRE Savings Bank/Fixed Deposit to FCNR(B) deposits(ii) Remittances from abroad

Both principal and interest are payable in Indian Rupees and to be credited on maturity in NRESavings bank account only which is fully repatriable. No auto renewal facility.

Pre-mature payment is subject to regulations as applicable to FCNR(B) deposits. In case ofcancellation of Forward Contract by the customer, cancellation charges and exchange gain/losshas to borne by the customer at prevailing rate.

No interest is payable if the FCNR (B) deposit is closed before maturity. Maturity proceeds are fully repatriable from NRE Savings bank account. Maturity proceeds are payable in Indian Rupees

It, is, however, to be noted, that while the yield on the deposit is higher i.e., interest rate + forwardpremium that they receive on account of booking the forward contract. The proceeds will be given inIndian Rupee (repatriable) and that too, at the pre-determined forward rate and is fully repatriable.

Lateral ThinkingNo. 2

Answers of these Ribus puzzles will be published in the next issue.

nswers of Lateral Thinking- 1 from April 2013 issue

1. Seven Seas 2. Split level 3. Forgive and forget 4.Missing you 5. Down Town6. Lucky break 7. He is beside himself 8. See through blouse 9. First aid 10. West indies. 11. Six feet underground 12. Backward glance 13. Tri-cycle

14. Reading between the lines 15. Cross roads

1 2 3 4 5


4/6

4

For more details scan the QR Code below;

RATES OF INTEREST ON NON RESIDENT DEPOSITS*

NRE Term Deposits-Retail and Bulk Deposits(w.e.f. 01/03/2013 (% p.a.))

Duration Revised interest rates (%) p.a.

1year -10 years 8.75

FCNR(B) Deposits(w.e.f. 01/05/2013 (% p.a.))

Duration

Interest Rates (% p.a.)

USD GBP EURO CAN$ AUD JYEN CHF DKK NZD SEK

(a) 1 yr and above butless than 2 yrs 2.70 2.89 2.40 3.76 5.51 2.44 2.25 2.50 4.69 3.20

(b) 2 yrs and abovebut less than 3 yrs 2.36 2.59 2.39 3.29 4.78 2.27 2.11 2.56 4.81 3.25

(c) 3 yrs and abovebut less than 4 yrs 3.45 3.65 3.48 4.36 5.92 3.30 3.17 3.65 6.02 4.36

(d) 4 yrs and abovebut less than 5 yrs 3.60 3.75 3.60 4.47 6.12 3.35 3.28 3.77 6.16 4.47

(e)5 yrs only 3.82 3.90 3.75 4.59 6.26 3.40 3.39 3.92 6.30 4.58

RESIDENT FOREIGN CURRENCY A/C. (RFC)(%P.A.)

w.e.f 01/05/2013

Period USD GBP EURO

1 year and above but less than 2 years 2.70 2.89 2.40

2 years and above but less than 3 years 2.36 2.59 2.39

3 years only 3.45 3.65 3.48

Note : - Minimum Amount USD 1000 or equivalent for RFC deposits

All these interest rates are subject to change, without notice .The revised interest rates are applicable only on fresh deposits and renewal of maturing deposits.

*Subject to change. Visit our website www.onlinesbi.com/nri for latest interest rates.

Non Resident Ordinary (NRO) deposit interest rates (%)(w.e.f. 01/03/2013 (% p.a.))

Duration Deposit below

Rs.15 lacs

Min.Rs.15 lacs but less

than Rs.1 Crore

Deposit of Rs.1 Crore

and above

7 days to 1 year 6.50 7.50 7.50

1 year to 10 years 8.75 8.75 8.75

Answers to NRI Quiz -2 from page 5

Qn No. Answer

1. c

2. a

3. c

4. b5. d

Savings Bank deposit

interest rate (NRO &NRE) 4.00%
http://www.onlinesbi.com/nrihttp://www.onlinesbi.com/nri


5/6

5

NRI Housing loan interest rates

Assumed Housing Loan Amount Rs. 30 Lacs

Period

EMI at theother Bank(Assumed

Interestrate

10.75%)

EMI at SBI(Interest

rate9.95%)

Savingsper

monthSavings due to

reduction inEMI over total

tenure

Interest income onaccount of depositof the difference in

EMI as RD

Total Gain onaccount of

switchover toSBI Home Loan

25 Years 28,863 27,155 1,708 5,12,400 12,45,469 17,57,869

20 Years 30,457 28,851 1,606 3,85,440 6,21,053 10,06,493

15 Years 33,629 32,146 1,483 2,66,940 2,70,497 5,37,437

Interested send an email to us. We will be reaching you.

Correction

In the previous issue the frequency of MTSS for a beneficiary was wrongly mentioned as 12. Please note that it hassince been increased to 30 transactions per calendar year per beneficiary.

The Double Tax Avoidance Agreements (DTAA) is a bilateral agreements entered into between between

India and otherforeign states. The basic objective is to avoid, taxation of income in both the countries(i.e. Double taxation of same income) and to promote and foster economic trade and investment betweenthe two countries. In India the provisions of the DTAA override the provisions of the domestic statute. Moreover,with the insertion of Sec.90 (2) in the Indian Income Tax Act, the assessee has an option of choosing to

be governed either by the provisions of particular DTAA or the provisions of the Income Tax Act,whichever are more beneficial.

The Non Resident can certainly take the benefit of the provisions of DTAA entered into betweenIndia and the country, in which he resides, more particularly in respect of Interest Income from NRO

For New NRI Car

Loans

0.75% above B.R. i.e 10.45% p.a. (for all periods)

EMI per lakh = Rs.1683/- only, for a 7 year loan.

(Base Rate, B.R9.70%)

Loan Amount

Linkage with Base Rateover the tenure of the loan

(Current B.R 9.70%) Effective rateEMI per lac

(For 30 yr loan)

Upto Rs 30 lacs 0.25% above Base Rate 9.95% Rs.874/-

Above Rs 30 lacs 0.40% above Base Rate 10.10% Rs.885/-

DOUBLE TAXATIONAVOIDANCE AGREEMENT

SBI Car Loans for NRIsNow available as Overdraft also


6/6

6

In the coming issues . . .

Investment avenues for NRIs Health tips Ribus Puzzles NRI Quiz

account, Government securities, Loans, Fixed Deposits with Companies and dividends etc. This isexplained below: - As all of us are aware that an NRI can open an NRE account, FCNB account or NRO account inany Bank in India. While the interest earned on NRE and FCNB accounts are Tax-free, the interest earnedon NRO accounts are taxable and subject to TDS (Tax Deducted at Source) as per Governmentregulations. TDS is deducted from NRO interest income irrespective of the amount of interest .Unlike adomestic deposit holder the NRIs cannot avoid TDS by presenting form 15G or15H .

The rate of TDS is 30% plus education cess (at present 3% of the tax). Total effective tax will be 30.90%.If total income (interest in this case) is more than10 lacs then additional 10% of the tax should bededucted as surcharge (total-33.99%). However under DTAA the NRI has to pay tax at the rate

prescribed in the DTAA with the country where Non Resident resides .

Under DTAA the reduced rates of tax will be country specific.

15% with Australia, Canada, USA, UK 12.50% with UAE 10% with KSA, Kuwait, Qatar and Oman

The benefit of the DTAA is available if the followed conditions are fulfilled :

i) The recipient is a non-resident under the IT Act; and

ii) The recipient is a tax resident of the foreign country in terms ofthe DTAA between India and the foreign country and isentitled to the benefits of DTAA.So to avail of the benefit under the DTAA, the non resident should submit a declaration stating that he isa non-resident under the Income Tax Act and is entitled to the benefits of the DTAA. This should besupported by a Tax Residency Certificate issued in favour of the non resident by tax authorities of theforeign country stating that the he is a tax resident of the concerned foreign country and is entitled to the

benefits of the DTAA between India and the foreign country. Such declaration and Tax Residency

Certificate should be submitted each year.

Remember TDS and Tax Liability are two different things. If the TDS is more than the tax liability then ,NRIs can file income tax return along with TDS certificate (with or without DTAA) from Bank throughany Chartered Accountant or directly and claim refund of excess tax. So TDS deducted over and abovenormal applicable tax can be claimed back. To see the list of DTAA countries and TDS rates please visitour websitehttp://www.sbi.co.in/webfiles/uploads/files/1311585986837_DTAA_COUNTRY_LIST.pdf

A feedback from our NRI Branch Trivandrum customer

Your Feedback is important to us.We cordially invite your suggestions and views to improve our products and quality of services. Please write to Smt. Smitha S. Nair, NRI Nodal Officer, [email protected] . Please also visit exclusive portal of our Bank for NRIs atwww.onlinesbi.com/nrifor more information on our products and services.

Disclaimer:

This Newsletter has been brought out with the sole intention of disseminatinguseful information to NRIs and does not purport to be a legal document or asolicitation. In case of any variation between what has been stated herein and therelevant Acts, Rules & Regulations, Policy Statement, Banks instructions. etc,the latter shall prevail.

The Chief Manager and the relationship Manager were very courteous and extremely helpful in giving me verycompetent professional advise. I am very grateful to both of them.

- Dr. S.G. Appan, Phd.
http://www.sbi.co.in/webfiles/uploads/files/1311585986837_DTAA_COUNTRY_LIST.pdfhttp://www.sbi.co.in/webfiles/uploads/files/1311585986837_DTAA_COUNTRY_LIST.pdfmailto:[email protected]://www.onlinesbi.com/nrihttp://www.onlinesbi.com/nrimailto:[email protected]://www.sbi.co.in/webfiles/uploads/files/1311585986837_DTAA_COUNTRY_LIST.pdf

Nrk Sandesham May 2013

Documents

Transcript of Nrk Sandesham May 2013