NRE Recurring Deposit: NRI Investment in India 2022
16 Mar 2022

NRE Recurring Deposit: NRI Investment in India 2022

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Key Takeaways

NRE Recurring Deposits are a great way to park your foreign earnings in India and earn interest on them. You can choose from fixed and flexible RD instalments and opt for tenures lasting from 1 year to 10 years. You can open the RD online directly through internet banking and transfer funds from your NRE savings account. Learn more about NRE RDs in this article.


As an NRI, you can enjoy many perks. You get investment opportunities in India and your country of residence. If you are residing in a country where the currency value is stronger than the INR, you can use that to your advantage and create fixed and recurring deposits in India. Since you can only open NRI bank accounts like Non-Resident External (NRE) Rupee and Non-Resident Ordinary (NRO) Rupee accounts, you can create your FDs through those accounts directly. Let us talk about the NRE Recurring Deposit in this article.

What is NRE Recurring Deposit Account?

An NRE Recurring Deposit is a type of bank deposit that is linked to your NRE account. Your NRE account is one where you can deposit your foreign earnings in the currency of your foreign country of residence. It enables you to maintain the income you earn outside India as an NRI.

NRE RDs are of two types; you can open a fixed NRE RD wherein you can invest a fixed sum each month or a flexible NRE RD wherein you can deposit a different amount each month.

NRE Recurring Deposit – Features and Benefits

Having explained NRE Recurring Deposit meaning, let us now understand its features and benefits.

  • You can open your NRE RD easily through your internet banking account linked to your NRE account. You just need to transfer funds from the NRE account to the RD account.
  • You can open the RD with tenures ranging from 1 year to 10 years.
  • NRE Recurring Deposit interest rates are usually at par with that offered on NRI Fixed Deposits.
  • You can open the RD jointly and also assign a nominee if you want.
  • You can easily repatriate funds from the RD upon maturity.
  • Premature withdrawal is permitted, but you will not be eligible to earn interest on the deposit if you opt for it.
  • The interest you earn on the RD is not taxable in India.
  • You can get preferential exchange rates on converting your foreign currency to INR.

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NRE Recurring Deposit for NRIs – Eligibility Criteria and Documents Required

The following is the eligibility criteria for Recurring Deposits for NRIs

  • Indian citizens residing overseas for studies, employment, business, or vocation.
  • Indian nationals posted abroad by the Indian Government, PSUs, or posted in the United Nations Organisation.
  • Indian nationals working as mariners, on oil rigs, or with foreign airlines.
  • Persons of Indian Origin or an Overseas Citizens of India holding a foreign passport (except a Pakistani or Bangladeshi passport).
  • An Indian passport holder at any point in time.
  • Individuals whose parent/s or grandparent/s were Indian citizens.
  • Spouse of an Indian citizen or PIO.

Documents needed

As mentioned earlier, you can open your NRE RD online by providing soft copies of documents like:

  • 1 copy of your valid Indian Passport.
  • 1 document proving your NRI status: work visa, residency visa, dependent visa, student visa, etc.
  • 1 document proving your PIO/OCI status: Existing or expired Indian Passport, PIO or OCI card, birth certificate, etc.
  • A copy of your PAN card or a duly filled Form 60.
  • A copy of your Indian and overseas address proof: passport, driver's license, bank statement, company ID, etc.

NRE Recurring Deposit Interest Rates

NRE Recurring Deposit interest rates are usually at par with those offered on NRE fixed deposits. It generally depends on your chosen NRE RD type and tenure. The interest for longer-term RDs is typically higher than those for shorter-term RDs. The interest you accrue every quarter is compounded, leading to increased earnings. The interest is paid out on maturity of the RD.

Things to Remember About Recurring Deposits For NRIs

  • With NRE RDs, you cannot make partial payments of instalments.
  • Banks allow investors to miss one or two instalments of the RD and still redeem it on maturity.
  • In case of missed payments, the actual maturity amount will differ, and you may have to pay the penalty for missing the instalment.
  • The RD instalment date is usually the date you open your RD account, but it may differ from bank to bank.

Final Note

As an NRI, you should consider opening an NRE Recurring Deposit. It is an excellent investment option, especially if you do not wish to invest a lump sum amount. Moreover, with digital banking facilities, you can open your RD in minutes and choose your preferred RD type as well.

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*Disclaimer: This article is published purely from an information perspective and it should not be deduced that the offering is available from DBS Bank India Limited or in partnership with any of its channel partners.

The purpose of this blog is not to provide advice but to provide information. Sound professional advice should be taken before making any investment decisions. The bank will not be responsible for any tax loss/other loss suffered by a person acting on the above.