Assets & Features of NRI Deposits


Assets are the properties owned by a business and are acquired to use them for generation of income through operations.

Fixed assets or Block Assets

  • These are the assets which are of relatively   permanent nature and they are not disposed off within a short period. These are carried over from year to year and put to use. A small portion of these assets is written off every year in the shape of depreciation. Where an assets is a fixed assets for a concern, is determined by the nature of its business (for one business, a vehicle dealer, a vehicle may a current asset and for the other, an SSI unit, it may be fixed one.
  • The examples of such assets could be land, building and structures, machinery, tools and equipment of all types, vehicles, furniture and fixtures, capital work will become fixed assets after some time, are part of Non-current Assets.

Current Assets

  • These are the assets which are required by the business for the purpose of re-sale and are re-circulating and arise out of usual business dealings. They are held temporarily for subsequent conversion into cash maximum within a period of 12 months. The financing of current assets is partly be from the long term funds and party, the current liabilities.
  • The following types of assets could be classified as current assets:

1.Cash and bank balances

2.Investment in quoted/tradable Govt. and other trustee securities (other than for long term purpose e.g. sinking fund, gratuity fund etc.) and fixed deposits with banks,

3.Receivables (or bills receivables or book dents or debtors or Sunday deposits)arising out of sales.

4.Instalments of deferred receivable due within one year,

5.Raw material and components,

6.Stock- in –process including semi-finished goods,

7.Finished goods including goods in transit,

8.per-paid expenses

9.Advances for purchased of raw materials, components and consumable spares and other advances,

10.Other current assets which fulfill the criteria of being called a Current Asset.

Misc. Assets(Non-Current assets)

These are neither current nor fixed, going by their use. Many times they may be unrelated to the business operations or might have been acquired due to some compulsion. These assets could be:

a: Investment in nor-marketable securities,

b: Investment in long term loans to sister or allied or associate firms,

c: Other long term investments,

d: Non-consumable spare parts and stores, disputed book debts or un-usable stocks.

e: Loans and advances of long term nature,

Intangible Assets

Certain assets in business don’t have any physical presence or in other words these are just book entries created with certain specific objectives. In order to account for the cost incurred on such  expenses, they are shows as assets in the books, a few examples of which may be as under:

A: Goodwill

B: Patents

C: Copyrights

D: Trade marks

E: Formulae

F: Preliminary and formulation expenses and pre-operative expenses to the extent not written off.

G: Loss incurred by the organization.

Note: Some of these assets are written off gradually to the debit of profit and loss account.


Foreign Currency Non-Resistant (Bank)

Account (FCNR-(B) A/c)

Account holder: NRI of Indian nationality or origin (RBI approval for Bangladesh/Pakistan citizens).

Joint account: can be of two or more NRIs. With closed resident relatives can operated a/c as power of attorney holder for local withdrawals or remittance abroad in name of account holder.

Currencies: any convertible currency.

Type of account: FDR only (a) 1 year and above less than 2 years (b) 2 years and above less than 3 years (c) 3 years and above less than 4years (d) 4 years and above less than 5 years (e) 5 years only.RD, SB or CA is not allowed.

Repatriation: principal and interest permitted.

Source of funds: foreign inward remittance (FIR) or transfer from NER-RA account (at TT selling rate).

Interest rate and interest payment: ceiling rate fixed by RBI (presently LIBOR + 2% (1 year to less than 3 years w.e.f. 01.03.14). No interest payment if cancellation before one year. For one year deposit, no computing of interest. For above one year, computing on 180days basis. Interest payment on 360days in year basis. On floating ROI, half –yearly reset is allowed.

Fund or non-fund Rupee lone against FDR: Up to value of FDR with proper margin (Oct 12, 2012) to depositor or 3rd party. Margin/interest rate bank discretion. Loans proceeds to be credited to NRO account. Loan can be repaid from FCNR, NER or NRO account balances. Banks should not mark any type of lien, direct or indirect, against these deposits. premature payment not allowed if loan is granted. FC loan can be given in India or abroad.

Nomination facility is available.

Income Tax: Interest is not available .TDS not available.

Additional ROT not allowed to staff (Jul 18,2012)

At the request of the depositor, banks can permit remittance of the maturity proceeds to third parties outside India, provided bank is satisfied about the bonafides of the transaction.