Are NRO/NRE/NRNR account holders eligible for loans/overdrafts against their fixed deposits?
Yes, except for the purpose of relending, carrying on agricultural/plantation activities or for investment in real estate business. Loans against NRE fixed deposits can, however, be utilised for investments in India on non-repatriation basis, in certain specified areas and for acquisition of flats/houses subject to prescribed conditions.

What are the rates of interest charged on such loans?
The rate of interest on such loans will be as per the directive issued by Reserve Bank (Department Banking Operations and Development) from time to time.

Can loans raised against NRE fixed deposits be repaid out of funds in NRO/NRSR accounts?
The loans raised against NRE deposits can be repaid out of funds held in NRO/NRSR accounts but in such cases, the interest would be charged at commercial rate in force from time to time.

Can a third party in India take loans against the NRO fixed deposit accounts of NRI?
Yes. Subject to certain conditions.

Is nomination allowed in NRO/NRE/NRSR accounts?
Yes.

Is repatriation of funds belonging to non-resident nominees permitted?
Funds held in NRO/NRSR accounts will be allowed to be credited to the non-resident nominee's NRO/NRSR account only and no repatriation is permitted. Remittance of funds to the non-resident nominee from the deceased person's NRE account will be permitted by authorised dealers.
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