Eligibility Any Non-resident Indian (NRI) or person of Indian origin can open NRO Sugam Term Deposit account. The account should be opened by the non-resident account holder himself and not by the holder of power of attorney in India.
NRO Accounts cannot be opened in the name of Overseas Corporate Bodies (OCBs).
Extant guidelines in respect of opening of NRO accounts by NRIs/ PIOs have been circulated by HO: IBD vide FEX Circular No. 50/2017 dated 22.12.2017.
Joint Accounts The account may be held jointly with residents and/or with non-residents.
The account may be held jointly with residents on ‘former or survivor’ basis only.
Account Opening Form Branches are advised to obtain account opening form for opening Non-Resident Ordinary Sugam Term Deposit Account. No separate form is required for different deposit schemes of bank as this form takes care of all the deposit schemes as well as FEMA requirements for opening Non-Resident Ordinary accounts. The AOF is also available at Bank’s website / E-circular site.
Further, while opening accounts procedural guidelines for KYC norms, money laundering and Politically Exposed Persons (PEP) may be kept in mind. Photocopies of passport and Visa/Resident permit may be obtained and kept on record.
Account Opening Forms relating to Non-Resident Ordinary Sugam Term Deposit Account should also be kept in a separate file and under no circumstances; these should be kept with resident Account Opening Forms.
Nomination Nomination is allowed in Non-Resident Ordinary Sugam Term Deposit Account in favour of a Resident or Non-Resident. It is essential to ensure that NRIs open accounts with such facilities as otherwise the survivors/heirs have to face the problems of having to produce valid legal representation to claim the amounts on the death of account holder. Such legal representation obviously involves lot of time and effort on the part of NRIs which need to be avoided to facilitate smooth investments by Non Resident Indians.
Tax Liabilities At present any income earned by way of interest on deposits in the name of individuals is liable of deduction of tax as per the rules prescribed by the Central Board of Direct Taxes.
Deposit Amount Minimum deposit of Rs.10,000/- and thereafter in multiples of Re.1/- with a maximum amount of Rs.10.00 Crore.
Period of Deposit For any period from 46 days to 120 months, even for incomplete quarters, such as, 13 months, 14 months, 37 months & 16 days and so on.
Interest Card Rate as per guidelines issued by HO: IRMD, (ALM) from time to time.
If any deposit falls below Rs.2 Crore due to partial withdrawal then rate as applicable for deposits below Rs.2 Crore is to be made applicable from the date of such withdrawal due to which the Principal amount of Sugam Deposit reduced to below Rs.2 Crore.
It is mandatory for the user that while effecting part withdrawals under PNB Sugam Scheme the A/C preferential Interest Credit Field has to be amended accordingly i.e. the applicable rate on the day for the segment if migrating to any other segment be put under A/C preferential interest credit field invariably.
The depositor has the option to draw interest monthly/quarterly or on maturity. Interest shall be paid on compounded basis with quarterly rests if the period of deposit remained with the Bank is 6 months and above.
No additional interest shall be paid on NRO deposits in the name of members of staff (Existing or retired) or Senior Citizen.
Further the additional rate of interest applicable on domestic deposits accepted from senior citizens is not applicable for NRO deposits.
Premature Withdrawal The depositor has the facility to withdraw any amount before maturity in multiples of Rs.1000/- any time whenever the customer needs it without breaking the entire deposit and without losing interest on the remaining deposit under the scheme. The value of Term Deposit Receipt (Principal amount) shall be reduced accordingly. No penalty to be levied in respect of the part withdrawal of deposit in multiples of Rs.1000/- before maturity. However, if any depositor desires to withdraw the entire deposit before maturity, no penalty will be levied and the interest rate payable would be contractual rate or the rate under the scheme on the contractual date applicable for the tenor for which the deposit has run, whichever is lower.
User has to modify collect penal interest flag as “N” while closing the Account.
Demand Loan or OD against term deposit/ Conversion/ Change of option/ Change of Base Branch Any request received from the customer before maturity, shall be entertained only at the base branch.

* Other terms and conditions as per general guidelines

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