GLOBAL CONNECT

NOVEMBER 2018

News from India

Foreign origin spouse of
Indians now eligible for OCI
card :-
Foreign-origin spouse of any
Indian national or an
Overseas Citizen of India
(OCI) cardholder will now be
eligible for obtaining the OCI
card which grants multiple
entry, multi-purpose, life-long
visa for visiting the country
(India).
So far, they were not allowed
to apply for this facility.
Once a foreign origin spouse
obtains OCI Card, he / she will
also be exempted from
registration with Foreign
Regional Registration Office
or Foreign Registration Office
for any length of stay in India.
Aadhaar not mandatory for some services: -
With the recent Supreme Court judgment, Aadhaar can now only be accepted
as a voluntary identity document. It is mandatory for those who seek to
receive any subsidy, benefit or service under the welfare schemes of the
Government of India. For opening of new accounts, Aadhaar in physical form
will be accepted as one of the documents of Proof of Identity / Proof of Address
purely on voluntary basis.
India, Japan sign $75 billion currency swap agreement: -
India and Japan signed a $75 billion bilateral currency swap agreement, which
is expected to bring stability to the foreign exchange and capital markets in the
country. There are expectations that the facility will not only make the agreed
amount of capital to India on tap for use, it would also help bring down the
cost of capital for Indian entities while accessing foreign capital markets. After
this pact India and Japan would no longer need Dollar to trade between them.
SBI NRI SERVICES WISHES YOU A VERY HAPPY DIWALI !!!

NRIs are eligible to file

Right to Information (RTI)
Applications :-
As clarified by Govt. of India,
all citizens of India have the
right to seek information
under the provisions of RTI
Act, 2005. Non-resident
Indian citizens are also
eligible to file RTI (Right to
Information) applications to
seek governance related
information.

Now RTIs can also be filed

online by visiting
https://rtionline.gov.in/.

P a g e 1|6
 News from Your Bank
SBI observed Risk Awareness Day / Vigilance Awareness Week

To promote integrity, transparency and accountability in day-to-day banking activities “Risk / Vigilance
Awareness Day / Week” was observed at your Bank’s Indian as well as Overseas offices. Since participation
of all the stakeholders is required in ensuring safe banking, we humbly request our customers too to remain
vigilant. Few of the good practices which You as our valued and informed customer can adopt are:-

i) Beware of fake offers by calls/SMS/email/social media asking money towards charges/fee/

duties/tax against winning of Prize/Lottery/Gift/job/goods etc. Do not fall prey to fake promises
by unscrupulous elements who ask you to deposit money in their accounts.
ii) Never ever share your personal account details with the unknown persons. This may be used for
illegal purpose. If you find unauthorised electronic transactions, please notify on our toll-free
numbers (https://www.sbi.co.in/portal/web/nri/contact-us) immediately.
iii) Our bank or any of our representatives never send email/SMS or calls to customers to get
customer’s personal information, password or one time SMS (High security) password. You may
also immediately bring the details of such offers / incidents to the notice of local police authorities
for booking the culprit and also inform the same to your Home Branch.

Customer Alert:-

➢ E -Wallet SBI Buddy being scrapped: - Your Bank is shutting down its e-wallet “SBI Buddy” from November
1, 2018. SBI Buddy wallets with zero balances are already being shut down and others’ wallets will also
be closed after due reconciliation. Buddy Users can utilise their available balance for Bill Pay/Recharges
and transfer (for full KYC users) to their Bank Accounts free of cost before 30.11.2018.
➢ Attention Internet Banking users, please register your mobile number with us immediately, if not already
done, through Branch, failing which the Internet Banking facility may be blocked with effect from
01.12.2018.
➢ To comply with Reserve Bank of India directive, Your Bank requests all the customers who are having
magnetic stripe ATM-cum-debit cards to replace it with EMV chip card before December 31, 2018 free of
cost. Bank will be replacing active cards (in use for last 12 months) in a phased manner. Customers are
advised to update their KYC details and current addresses with the Bank. Customers who have not used
their card in last 12 months, may place request for issuance of new card with their Home Branch.
Application form is available at https://bank.sbi/portal/web/nri/download-forms. Please note that Bank
has already decativated Magstripe Card where EMV chip based card is already issued on the account in
the past. Customers are advised to use EMV chip based card for safe banking.

SBI to become Plastic-free organization in One Year

On the occasion of Mahatma Gandhi’s birth anniversary on

2nd October 2018, your Bank has announced to become a
plastic free organisation in next 12 months. SBI will be
undertaking phase-wise steps to become plastic free. PET
bottles will be replaced with water dispensers at all offices
and meetings. The Bank will also start using standardized
paper folders replacing plastic ones. Bank will also replace
single use plastic cutleries and containers in its canteens with
those made from biodegradable substances.
P a g e 2|6
Product in Focus: - SBI Tax Savings Scheme for NRIs (NRO Deposit)
A large number of NRIs / PIOs / OCIs are earning regular taxable incomes in India, but feel that they have
limited investment options to save tax. However, one of the attractive and lesser known option available
SBI NRIthe
under PRODUCT PORTFOLIO:
extant guidelines is - A BOUQUET OF OFFERINGS TO SUIT ALL YOUR BANKING NEEDS

“benefit under section 80C of “Income Tax Act 1961” under investment in Tax Savings Scheme with Banks”.

Now, to facilitate our NRI/PIO/OCI customers (save tax) and to offer them all our products and services under
one roof, SBI Tax Savings Scheme – NRO Deposit (SBITSS-NRO) has been launched.

Detailed features of this product are as under :-

Features of SBI Tax Savings Scheme (NRO)

SN Feature Details
1 Purpose To avail Tax benefits under section 80C of Income Tax Act, 1961
2 Eligibility NRI/PIO/OCI customers, having Income Tax Permanent Account Number
(PAN), Submission of PAN is mandatory.
3 Mode of operation/ 1. Single holder;
Type of holding (no deposit receipt shall be issued in the name of minors)
2. Joint holders;
• The joint holder type deposit receipt may be issued jointly to two
adults or jointly to an adult and a minor (minor being the second
holder) and payable to either of the holders or to the survivor,
provided that in the case of joint holder type deposit, the
deduction from income under section 80C of the Act shall be
available only to the first holder of the deposit.
• The accounts may be held jointly with Residents on ‘Former or
Survivor’ basis only.
4 Type of Account • Term Deposit (TD) account - NRO
• Special Term Deposit (STD) account - NRO
5 Account Opening Extant procedure for opening a normal NRO - TD/ STD account will be
Procedure applicable.
6 Period of deposit 5 years only
7 Available at All SBI branches (Online version will be rolled out soon)
8 Minimum & Rs. 10,000/- and in multiples of Rs. 1,000/- but not exceeding Rs. 150,000 in
Maximum Amount a financial year
9 Rate of Interest As applicable to NRO Deposits for 5 years term
10 Income tax on Income Tax @30.90% (as applicable to NRO deposits) will be deducted at
interest source on interest earned on the deposits.

In case, depositor is resident of any of those countries with whom India has
a DTAA, the tax will be deducted as per DTAA (Double Taxation Avoidance
Agreement) rate agreed between India and the respective country. DTAA
benefit can be availed by submitting following three documents;

1. Tax Residency Certificate (TRC) issued by the revenue authorities of

current country of residence
2. Self-declaration (form can be downloaded from our website)
3. Form No. 10F (form can be downloaded from our website

P a g e 3|6
 Product in Focus: - SBI Tax Savings Scheme for NRIs (NRO Deposit) Cont.
SN Feature Details
11 Closure / Premature Premature closure before completion of 5 years is NOT permitted. However,
SBI NRI PRODUCT PORTFOLIO:
Closure in the- A BOUQUET
event of deathOF
of OFFERINGS TO SUIT
primary account ALL
holder, it YOUR BANKING
is permitted. On maturity,
NEEDS it will be credited back to NRO a/c from where it is funded. In case, it is not
credited to a/c for any reason, it will be rolled over for 5 years under regular
NRO Deposit Scheme.
12 Repatriation of NRO Principal & interest amounts held under SBITSS accounts are repatriable
funds within overall ceiling of USD 1 million or equivalent per financial year subject
to payment of applicable taxes and submission of required documents/forms.
Maturity proceeds to be routed through NRO SB Account for repatriation of
funds.
13 Nomination No nomination shall be made in respect of a term deposit applied for and held
by or on behalf of a minor. In all other cases, it is permitted.
14 Loan facility Not available. The term deposit cannot be pledged to secure loan or as
security for any other fund / non-fund asset.
15 Transferability among Deposit can be transferred to any SBI Branch.
our Branches

At present, the product is being made available through our branch network only. Developments are under
way to make this product available through Retail Internet Banking (RINB) too. However, till such time,
accounts under this product will be opened through all SBI branches. Once the product is made available
through RINB, necessary information / instructions (to branches) will be issued.

For details, you can visit https://bank.sbi/portal/web/nri/nro-tax-saving-scheme

📞‘Missed Call & SMS Banking’ facility for NRI customers 📞

SBI NRI PRODUCT

MISSED CALL & SMS PORTFOLIO:
BANKING -isA aBOUQUET OF OFFERINGS
free service TO SUIT
from the Bank ALL you
wherein YOURcan BANKING
get your Account
Balance
NEEDS and Mini Account Statement (last 5 transactions) on your registered overseas mobile number
by giving a Missed Call. Please ensure that your overseas mobile number is updated in your account to be
able to register for this service.

One-time registration process:

Send SMS, ‘REG<space>Account Number’ to +918422833333. You will receive a confirmation message
from SBI indicating successful/unsuccessful registration.

For availing Account related services:

For getting Account Balance, give missed call to +919220055222, you will get SMS with latest balance.

For getting Mini Statement, give missed call to +919220055333, you will get SMS with last 5 transactions.

If unsuccessful: - Check the SMS format and destination mobile number. Ensure that your mobile number
from which the SMS is being sent, is updated with the Bank for that account number. If not, contact your
Branch / visit Internet Banking and update the same.

For more details, visit ‘Quick Links’ on https://bank.sbi/portal/web/nri/home.

P a g e 4|6
FAQs on NRI Taxation: - Implication on Returning Indians (Bank Accounts & Taxes)
A returning Non-Resident should know and understand various aspects of Foreign Exchange Regulations
(FEMA), Indian Taxation and Banking Regulations in order to rearrange his/her financial matters in India and
outside India. We are giving below a synopsis of important areas which one should pay attention to while
repatriating/returning to India:-

Overseas Assets:- All kinds of Foreign exchange / Overseas assets, such as properties, bank deposits, stocks
and securities, life insurance policies, loans, company deposits, debentures, bonds etc. acquired, held or
owned by a Non-Resident while he / she was abroad can be continued to be so held or dealt with even after
the Non-Resident’s return to India for permanent settlement.

Indian Assets: - I) Bank Accounts (in India)

Returning Non-Resident, upon his / her return to India has to deal with his /her various accounts in India in
the following manner:
Account Description Treatment to be given
NRO Account Re-designate to Resident Account
FCNR Account Hold upto maturity. Upon maturity should be converted
into Rupee Account or Resident Foreign Currency Account
NRE A/c Re-designate to Resident A/c or Transfer Balance to RFC A/c.
II) Shares Securities etc.:- Returning Non-Resident is required to inform all the companies, funds etc. (with
whom he/she is having relationship) regarding change of residential status from Non-Resident to Resident.

Income Tax Act

The tax liability of a person returning to India would depend on the Residential Status of a person as per the
Income-tax Act, 1961 as under;

➢ Under the Indian Tax Laws, overseas income is liable to tax in India only if the assesse is an ordinarily
resident. A returning Indian who has been a Non-Resident for 9 years or more, then, for 2 successive
years he/she shall be a Resident But not Ordinarily Resident (RNOR).
➢ Interest paid by scheduled banks to Non-Resident or to a person who is not ordinarily resident on
RBI approved foreign currency deposits (i.e. RFC deposits) is exempt. The exemption in respect of
RFC account continues till such time as the account holder continues to be “Resident but not
Ordinarily Resident”.
➢ Pension from Non-residents’ former employer after return to India may be liable to tax in India subject
to provisions of Double Taxation Avoidance Agreement between India and the country from which NRI
is receiving such amount.

Wealth Tax
I) Assets located outside India of Non-resident (NR)/ Resident but Not Ordinary Resident (RNOR) are
exempt from Wealth Tax.
II) If Non-Resident return to India with the intention of permanently residing in India, the assets
brought by him / her will be exempt. Also, the money and the assets acquired from the money
brought by Non-Resident within one year after his return, will be exempt. This exemption is
available to Non-Resident for a period of seven years after his /her return to India.

P a g e 5|6
 SBI Interest Rates Corner
NRE / NRO Term Deposits with effect from 30th July, 2018 (in % p.a.) #
Tenor Below Rs. 1 Crore Rs. 1 Crore and above
NRE NRO NRE NRO
7 days to 45 days -- 5.75 -- 5.75
46 days to 179 days -- 6.25 -- 6.25
180 days to 210 days -- 6.35 -- 6.35
211 days to less than 1 year -- 6.40 -- 6.40
1 year to less than 2 years 6.70 6.70 6.70 6.70
2 years to less than 3 years 6.75 6.75 6.75 6.75
3 years to less than 5 years 6.80 6.80 6.80 6.80
5 years to 10 years 6.85 6.85 6.85 6.85

FCNR (B) Deposits with effect from 1st November 2018 (in % p.a.) *#
CURRENCY USD GBP EURO CAD AUD JPY
Period Rate Yield Rate Yield Rate Yield Rate Yield Rate Yield Rate Yield
1 year 3.63 3.68 1.43 1.45 0.01 0.01 2.55 2.59 1.96 1.99 0.02 0.02
Above 1 year to less than 2
years 3.63 3.78 1.43 1.47 0.01 0.01 2.55 2.64 1.96 2.02 0.02 0.02
2 years to less than 3
years 3.55 3.77 1.62 1.68 0.01 0.01 2.70 2.83 2.04 2.12 0.05 0.05
3 years to less than 4
years 3.58 3.87 1.72 1.80 0.01 0.01 2.76 2.94 2.11 2.22 0.05 0.05
4 years to less than 5
years 3.61 3.98 1.80 1.90 0.10 0.10 2.79 3.02 2.37 2.54 0.05 0.05
5 years 3.62 3.99 1.86 1.97 0.15 0.15 2.81 3.04 2.47 2.65 0.05 0.05
*(Annualized yield at the end of the period.)

RESIDENT FOREIGN CURRNCY (RFC) Deposits with effect from 1st November 2018 (in % p.a.) #
PERIOD USD GBP EURO
1 year and above but less than 2 years 3.63 1.43 0.01
2 years and above but less than 3 years 3.55 1.62 0.01
3 years only 3.58 1.72 0.01

# Rates are subject to change, without prior notice, please visit our website “bank.sbi” for latest interest rates.

Your Feedback is important to us……….

We cordially invite your suggestions and views to improve our products and quality of services. Please write to us at
customercare.nri@sbi.co.in.

Please visit exclusive portal of our Bank for NRIs at the ‘NRI Services’ section of “bank. sbi” for more details .

For list of 24X7 Toll Free Nos in 21 Countries Visit: https://www.sbi.co.in/portal/web/nri/contact-us

For getting your views / articles published, please share your thoughts / work at nridesk.cc@sbi.co.in.

A newsletter from:
NRI Services, State Bank of India
Corporate Centre, Mumbai, India

FOLLOW US ON
A newsletter from:
NRIout
Disclaimer: This Newsletter has been brought Services,
with theState
sole Bank of India
intention of disseminating useful information to NRIs
and does not purport to be a legal document Corporate
or a solicitation. In case
Centre, of any variance between what has been stated
Mumbai
herein and the relevant Acts/ Rules & Regulations/ Policy Statement / Instructions of the Bank, the latter shall prevail.
P a g e 6|6