The definitions and explanations given below have been simplified to make them easily understandable by lay persons. For official definitions or detailed explanations, reference should be made to relevant publications of the Government of India or the Reserve Bank of India. The information given below is merely to answer in a simple language the questions most frequently asked to us by people of Indian origin living in the United States.

Q. 1: Am I a Non-Resident Indian (NRI)?

A. 1: Yes, if you are an Indian citizen who is staying abroad for employment or carrying on business or vocation outside India or staying abroad under circumstances that indicate an intention for uncertain duration of stay abroad.

Q. 2: Who is a Person of Indian Origin (PIO)?

A. 2: A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of Indian origin if :

• he at any time held an Indian passport; or
• he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955.

A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a Person of Indian Origin is also treated as a Person of Indian Origin for the purpose of NRI deposits if the accounts are held jointly with the NRI/PIO spouse. PIOs are extended the same facilities for bank account maintenance in India as NRIs and are also, for such purposes, called by the generic name as NRIs.

Q.3: What are NRI accounts?

A. 3: What are commonly known as "NRI accounts" are Indian accounts opened for NRIs. For more information on such accounts, visit the website of our Indian operations at www.statebankofindia.com

Q.4:Why can I not open an "NRI Account" in New York branch?"

A. 4: "NRI accounts" are Indian accounts opened for NRIs. These can, therefore, be opened only at our Indian branches. You can use the services of New York branch for sending remittance for opening these accounts at select branches. The account opening form is available on the website of our Indian operations (www.statebankofindia.com, lower left side of the home page, through the "Forms" option). To select branches in India, New York branch may also send your account opening form free of cost, along with the remittance.

For more information, please refer to the "NRI Banking" section on the home page of the website referred above.

Q.5: What does the word repatriable mean in India?

A. 5: Repatriable means the balance held in the account in India can be taken out of India.

Q.6: What is nomination in India?

A. 6: Under the banking rules in India, you are permitted to nominate one person who will receive the money of your account if you pass away. We strongly recommend that you nominate on all your accounts that you open in India. Remember, each account requires separate nomination. Similarly, renewal of fixed deposit accounts also requires fresh nomination at the time of each renewal, even if the original deposit was nominated and even if the deposit was renewed automatically.

Q.7: I want to open an account into which I can send money periodically from here and from which my father in India can withdraw the money. Which account should I open?

A. 7: Open an NRO Savings Bank account jointly with your father. Alternatively, you may give a Letter of Authority to your father to operate your NRE account.

A simpler way, however, could be to send a remittance directly to your father's account.

Q.8: Where can I get the interest rate offered on "NRI Accounts"?

A. 8: Please visit the website of Indian operations (www.statebankofindia.com) and click on the box "Interest Rates" located at lower left side of the home page.

Q.9: Is interest earned on "NRI Accounts" tax free outside India?

A. 9: Please refer to the taxation provisions of the country of your residence.