0 of 20 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
Information
- Questions: 20
You have already completed the Test before. Hence you can not start it again.
Test is loading...
You must sign in or sign up to start the Test.
You have to finish following quiz, to start this Test:
Your results are here!! for" JAIIB Paper 2 Module A (5) "
0 of 20 questions answered correctly
Your time:
Time has elapsed
Your Final Score is : 0
You have attempted : 0
Number of Correct Questions : 0 and scored 0
Number of Incorrect Questions : 0 and Negative marks 0
-
Not categorized
You have attempted: 0
Number of Correct Questions: 0 and scored 0
Number of Incorrect Questions: 0 and Negative marks 0
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- Answered
- Review
-
Question 1 of 20
1. Question
Which account is specifically designed to allow a resident individual to retain eligible foreign exchange earnings in foreign currency in India, subject to RBI rules?
Correct
The Resident Foreign Currency (RFC) account is available to eligible resident individuals under the applicable FEMA/RBI framework, including certain residents returning to India after a period abroad. A Resident Foreign Currency (Domestic) account (RFC(D)) is a distinct facility for eligible foreign exchange acquired from specified sources while resident in India. Eligibility, permitted credits/debits and account conditions must be checked against current RBI directions.
Incorrect
The Resident Foreign Currency (RFC) account is available to eligible resident individuals under the applicable FEMA/RBI framework, including certain residents returning to India after a period abroad. A Resident Foreign Currency (Domestic) account (RFC(D)) is a distinct facility for eligible foreign exchange acquired from specified sources while resident in India. Eligibility, permitted credits/debits and account conditions must be checked against current RBI directions.
Unattempted
The Resident Foreign Currency (RFC) account is available to eligible resident individuals under the applicable FEMA/RBI framework, including certain residents returning to India after a period abroad. A Resident Foreign Currency (Domestic) account (RFC(D)) is a distinct facility for eligible foreign exchange acquired from specified sources while resident in India. Eligibility, permitted credits/debits and account conditions must be checked against current RBI directions.
-
Question 2 of 20
2. Question
What is a central objective of cash management services (CMS) offered by banks to business customers?
Correct
CMS helps businesses manage collections, payments, liquidity and reconciliation more efficiently. Depending on the service, a bank may provide collection solutions, payment processing, virtual accounts, reporting and integration with the customer’s systems. CMS is not limited to physically transporting cash, nor does it guarantee that a business will never face a liquidity shortfall; it improves visibility and operational control over cash flows.
Incorrect
CMS helps businesses manage collections, payments, liquidity and reconciliation more efficiently. Depending on the service, a bank may provide collection solutions, payment processing, virtual accounts, reporting and integration with the customer’s systems. CMS is not limited to physically transporting cash, nor does it guarantee that a business will never face a liquidity shortfall; it improves visibility and operational control over cash flows.
Unattempted
CMS helps businesses manage collections, payments, liquidity and reconciliation more efficiently. Depending on the service, a bank may provide collection solutions, payment processing, virtual accounts, reporting and integration with the customer’s systems. CMS is not limited to physically transporting cash, nor does it guarantee that a business will never face a liquidity shortfall; it improves visibility and operational control over cash flows.
-
Question 3 of 20
3. Question
A cheque presented for payment contains an alteration that is apparent on its face and has not been properly authenticated. What should the paying bank generally do?
Correct
A paying banker must examine a cheque with reasonable care and follow the Negotiable Instruments Act, clearing rules and bank procedures. An apparent material alteration that is not properly authenticated is a warning sign; the bank should not pay it as though it were regular. The legal effect depends on the type of alteration and circumstances, but statutory protection for payment in due course cannot be assumed where the bank pays negligently or disregards an obvious irregularity.
Incorrect
A paying banker must examine a cheque with reasonable care and follow the Negotiable Instruments Act, clearing rules and bank procedures. An apparent material alteration that is not properly authenticated is a warning sign; the bank should not pay it as though it were regular. The legal effect depends on the type of alteration and circumstances, but statutory protection for payment in due course cannot be assumed where the bank pays negligently or disregards an obvious irregularity.
Unattempted
A paying banker must examine a cheque with reasonable care and follow the Negotiable Instruments Act, clearing rules and bank procedures. An apparent material alteration that is not properly authenticated is a warning sign; the bank should not pay it as though it were regular. The legal effect depends on the type of alteration and circumstances, but statutory protection for payment in due course cannot be assumed where the bank pays negligently or disregards an obvious irregularity.
-
Question 4 of 20
4. Question
A collecting banker seeks statutory protection when collecting a cheque for a customer. Which practice is most important to the protection available under the Negotiable Instruments Act?
Correct
Section 131 of the Negotiable Instruments Act provides qualified protection to a banker who, in good faith and without negligence, receives payment for a customer of a crossed cheque, subject to the statutory conditions. The bank should collect for a customer, observe due care, and investigate suspicious circumstances where appropriate. Protection is not automatic merely because the collecting institution is a bank; negligence or failure to meet the statutory conditions may defeat it.
Incorrect
Section 131 of the Negotiable Instruments Act provides qualified protection to a banker who, in good faith and without negligence, receives payment for a customer of a crossed cheque, subject to the statutory conditions. The bank should collect for a customer, observe due care, and investigate suspicious circumstances where appropriate. Protection is not automatic merely because the collecting institution is a bank; negligence or failure to meet the statutory conditions may defeat it.
Unattempted
Section 131 of the Negotiable Instruments Act provides qualified protection to a banker who, in good faith and without negligence, receives payment for a customer of a crossed cheque, subject to the statutory conditions. The bank should collect for a customer, observe due care, and investigate suspicious circumstances where appropriate. Protection is not automatic merely because the collecting institution is a bank; negligence or failure to meet the statutory conditions may defeat it.
-
Question 5 of 20
5. Question
Which statement correctly distinguishes NEFT from RTGS?
Correct
NEFT processes transfers in batches at half-hourly intervals under the current system, while RTGS settles transactions individually in real time on a gross basis. RBI has removed the minimum amount requirement for NEFT; RTGS has a minimum transaction amount of ₹2 lakh and no RBI-prescribed upper ceiling, though a bank may set its own limits. Both operate round the clock, subject to the current system framework and participant/bank processes.
Incorrect
NEFT processes transfers in batches at half-hourly intervals under the current system, while RTGS settles transactions individually in real time on a gross basis. RBI has removed the minimum amount requirement for NEFT; RTGS has a minimum transaction amount of ₹2 lakh and no RBI-prescribed upper ceiling, though a bank may set its own limits. Both operate round the clock, subject to the current system framework and participant/bank processes.
Unattempted
NEFT processes transfers in batches at half-hourly intervals under the current system, while RTGS settles transactions individually in real time on a gross basis. RBI has removed the minimum amount requirement for NEFT; RTGS has a minimum transaction amount of ₹2 lakh and no RBI-prescribed upper ceiling, though a bank may set its own limits. Both operate round the clock, subject to the current system framework and participant/bank processes.
-
Question 6 of 20
6. Question
What is the primary purpose of a Business Correspondent (BC) model in banking?
Correct
Business Correspondents act as permitted agents of banks to extend basic banking services, especially in underserved and remote areas. Depending on the bank’s arrangement and applicable RBI instructions, services can include account opening support, deposits, withdrawals, remittances and other permitted transactions. A BC is not an independent bank and cannot perform every banking activity without restriction; the bank remains responsible for the services provided through its authorised channel.
Incorrect
Business Correspondents act as permitted agents of banks to extend basic banking services, especially in underserved and remote areas. Depending on the bank’s arrangement and applicable RBI instructions, services can include account opening support, deposits, withdrawals, remittances and other permitted transactions. A BC is not an independent bank and cannot perform every banking activity without restriction; the bank remains responsible for the services provided through its authorised channel.
Unattempted
Business Correspondents act as permitted agents of banks to extend basic banking services, especially in underserved and remote areas. Depending on the bank’s arrangement and applicable RBI instructions, services can include account opening support, deposits, withdrawals, remittances and other permitted transactions. A BC is not an independent bank and cannot perform every banking activity without restriction; the bank remains responsible for the services provided through its authorised channel.
-
Question 7 of 20
7. Question
A customer reports an unauthorised electronic banking transaction. Which response is most consistent with RBI customer-protection principles?
Correct
Banks should provide a channel to report unauthorised transactions, take prompt steps to prevent further unauthorised activity, investigate and apply the RBI framework on customer liability. The customer’s liability can depend on factors such as whether the fraud resulted from bank deficiency, a third-party breach, or customer negligence, and how quickly the customer reported it. A bank should not automatically tell every customer that liability is unlimited; the applicable circular and facts must be assessed.
Incorrect
Banks should provide a channel to report unauthorised transactions, take prompt steps to prevent further unauthorised activity, investigate and apply the RBI framework on customer liability. The customer’s liability can depend on factors such as whether the fraud resulted from bank deficiency, a third-party breach, or customer negligence, and how quickly the customer reported it. A bank should not automatically tell every customer that liability is unlimited; the applicable circular and facts must be assessed.
Unattempted
Banks should provide a channel to report unauthorised transactions, take prompt steps to prevent further unauthorised activity, investigate and apply the RBI framework on customer liability. The customer’s liability can depend on factors such as whether the fraud resulted from bank deficiency, a third-party breach, or customer negligence, and how quickly the customer reported it. A bank should not automatically tell every customer that liability is unlimited; the applicable circular and facts must be assessed.
-
Question 8 of 20
8. Question
A bank is generally required to maintain the confidentiality of customer information. Which is a recognised basis on which disclosure may be made?
Correct
A banker’s duty of confidentiality is important but not absolute. Disclosure may be justified by law, a duty to the public, the bank’s own legitimate interests in appropriate circumstances, or the customer’s express or implied consent, subject to applicable law and safeguards. A bank should not disclose account information merely because a third party asks for it. Legal orders and statutory reporting obligations must be handled in accordance with their scope and governing rules.
Incorrect
A banker’s duty of confidentiality is important but not absolute. Disclosure may be justified by law, a duty to the public, the bank’s own legitimate interests in appropriate circumstances, or the customer’s express or implied consent, subject to applicable law and safeguards. A bank should not disclose account information merely because a third party asks for it. Legal orders and statutory reporting obligations must be handled in accordance with their scope and governing rules.
Unattempted
A banker’s duty of confidentiality is important but not absolute. Disclosure may be justified by law, a duty to the public, the bank’s own legitimate interests in appropriate circumstances, or the customer’s express or implied consent, subject to applicable law and safeguards. A bank should not disclose account information merely because a third party asks for it. Legal orders and statutory reporting obligations must be handled in accordance with their scope and governing rules.
-
Question 9 of 20
9. Question
Under the RBI Integrated Ombudsman Scheme, 2021, when can a customer generally approach the RBI Ombudsman after first complaining to the regulated entity?
Correct
As a general rule, the customer must first lodge a complaint with the regulated entity. If the entity rejects it wholly or partly and the customer is dissatisfied, or gives no reply within 30 days, the customer may approach the RBI Ombudsman, subject to the scheme’s other eligibility conditions and time limits. If the entity replies within 30 days, the customer need not wait further if dissatisfied, but should ensure the complaint is otherwise maintainable under the scheme.
Incorrect
As a general rule, the customer must first lodge a complaint with the regulated entity. If the entity rejects it wholly or partly and the customer is dissatisfied, or gives no reply within 30 days, the customer may approach the RBI Ombudsman, subject to the scheme’s other eligibility conditions and time limits. If the entity replies within 30 days, the customer need not wait further if dissatisfied, but should ensure the complaint is otherwise maintainable under the scheme.
Unattempted
As a general rule, the customer must first lodge a complaint with the regulated entity. If the entity rejects it wholly or partly and the customer is dissatisfied, or gives no reply within 30 days, the customer may approach the RBI Ombudsman, subject to the scheme’s other eligibility conditions and time limits. If the entity replies within 30 days, the customer need not wait further if dissatisfied, but should ensure the complaint is otherwise maintainable under the scheme.
-
Question 10 of 20
10. Question
Under the Consumer Protection Act, 2019, which body is empowered to act against unfair trade practices and misleading advertisements at the central level?
Correct
The Central Consumer Protection Authority (CCPA) is established under the Consumer Protection Act, 2019 and has powers relating to violations of consumer rights, unfair trade practices and false or misleading advertisements, as provided by the Act. Consumer Disputes Redressal Commissions adjudicate eligible consumer disputes at district, state and national levels. The CCPA and the commissions have different roles, so they should not be treated as interchangeable bodies.
Incorrect
The Central Consumer Protection Authority (CCPA) is established under the Consumer Protection Act, 2019 and has powers relating to violations of consumer rights, unfair trade practices and false or misleading advertisements, as provided by the Act. Consumer Disputes Redressal Commissions adjudicate eligible consumer disputes at district, state and national levels. The CCPA and the commissions have different roles, so they should not be treated as interchangeable bodies.
Unattempted
The Central Consumer Protection Authority (CCPA) is established under the Consumer Protection Act, 2019 and has powers relating to violations of consumer rights, unfair trade practices and false or misleading advertisements, as provided by the Act. Consumer Disputes Redressal Commissions adjudicate eligible consumer disputes at district, state and national levels. The CCPA and the commissions have different roles, so they should not be treated as interchangeable bodies.
-
Question 11 of 20
11. Question
A citizen seeks information from a public sector bank under the Right to Information Act, 2005. Which statement is correct?
Correct
A public sector bank is generally a public authority under the RTI Act and must process eligible requests through its designated Central Public Information Officer (CPIO), subject to statutory exemptions and the Act’s procedure. The ordinary response period is 30 days from receipt of the request; matters concerning life or liberty have a shorter statutory period of 48 hours. Personal or confidential information may be exempt in appropriate circumstances, and the law contains processes for appeals and other exceptions.
Incorrect
A public sector bank is generally a public authority under the RTI Act and must process eligible requests through its designated Central Public Information Officer (CPIO), subject to statutory exemptions and the Act’s procedure. The ordinary response period is 30 days from receipt of the request; matters concerning life or liberty have a shorter statutory period of 48 hours. Personal or confidential information may be exempt in appropriate circumstances, and the law contains processes for appeals and other exceptions.
Unattempted
A public sector bank is generally a public authority under the RTI Act and must process eligible requests through its designated Central Public Information Officer (CPIO), subject to statutory exemptions and the Act’s procedure. The ordinary response period is 30 days from receipt of the request; matters concerning life or liberty have a shorter statutory period of 48 hours. Personal or confidential information may be exempt in appropriate circumstances, and the law contains processes for appeals and other exceptions.
-
Question 12 of 20
12. Question
When a bank receives money from a customer in a savings account, which relationship generally arises in respect of that money?
Correct
The relationship is generally that of debtor and creditor: the bank becomes the debtor and the customer becomes the creditor because the bank owes the deposited amount to the customer, subject to the account terms and applicable law. The relationship is not ordinarily trustee and beneficiary because the bank may use deposited funds in its banking business. Other relationships, such as agent–principal or bailee–bailor, can arise for particular services or property entrusted to the bank.
Incorrect
The relationship is generally that of debtor and creditor: the bank becomes the debtor and the customer becomes the creditor because the bank owes the deposited amount to the customer, subject to the account terms and applicable law. The relationship is not ordinarily trustee and beneficiary because the bank may use deposited funds in its banking business. Other relationships, such as agent–principal or bailee–bailor, can arise for particular services or property entrusted to the bank.
Unattempted
The relationship is generally that of debtor and creditor: the bank becomes the debtor and the customer becomes the creditor because the bank owes the deposited amount to the customer, subject to the account terms and applicable law. The relationship is not ordinarily trustee and beneficiary because the bank may use deposited funds in its banking business. Other relationships, such as agent–principal or bailee–bailor, can arise for particular services or property entrusted to the bank.
-
Question 13 of 20
13. Question
Under India’s anti-money-laundering framework, which authority receives prescribed reports of suspicious transactions from reporting entities such as banks?
Correct
The Financial Intelligence Unit–India (FIU-IND) receives and analyses prescribed financial transaction reports, including Suspicious Transaction Reports (STRs), from reporting entities under the Prevention of Money Laundering Act framework and related rules. A bank should report a suspicious transaction based on the prescribed criteria even where the transaction amount is not large. RBI supervises regulated banks, while law-enforcement agencies investigate offences within their respective powers.
Incorrect
The Financial Intelligence Unit–India (FIU-IND) receives and analyses prescribed financial transaction reports, including Suspicious Transaction Reports (STRs), from reporting entities under the Prevention of Money Laundering Act framework and related rules. A bank should report a suspicious transaction based on the prescribed criteria even where the transaction amount is not large. RBI supervises regulated banks, while law-enforcement agencies investigate offences within their respective powers.
Unattempted
The Financial Intelligence Unit–India (FIU-IND) receives and analyses prescribed financial transaction reports, including Suspicious Transaction Reports (STRs), from reporting entities under the Prevention of Money Laundering Act framework and related rules. A bank should report a suspicious transaction based on the prescribed criteria even where the transaction amount is not large. RBI supervises regulated banks, while law-enforcement agencies investigate offences within their respective powers.
-
Question 14 of 20
14. Question
A bank needs to identify an individual customer for KYC purposes. Which statement about the Officially Valid Document (OVD) framework is correct?
Correct
KYC rules prescribe specified Officially Valid Documents and related identification requirements. The precise list and treatment of documents must be read with the current RBI KYC Directions and amendments; Aadhaar is subject to the applicable statutory framework and permitted-use conditions, rather than being a universally compulsory document for every banking relationship. Banks must follow customer due diligence, verification and record-updating requirements relevant to the account and risk category.
Incorrect
KYC rules prescribe specified Officially Valid Documents and related identification requirements. The precise list and treatment of documents must be read with the current RBI KYC Directions and amendments; Aadhaar is subject to the applicable statutory framework and permitted-use conditions, rather than being a universally compulsory document for every banking relationship. Banks must follow customer due diligence, verification and record-updating requirements relevant to the account and risk category.
Unattempted
KYC rules prescribe specified Officially Valid Documents and related identification requirements. The precise list and treatment of documents must be read with the current RBI KYC Directions and amendments; Aadhaar is subject to the applicable statutory framework and permitted-use conditions, rather than being a universally compulsory document for every banking relationship. Banks must follow customer due diligence, verification and record-updating requirements relevant to the account and risk category.
-
Question 15 of 20
15. Question
A bank is opening a current account in the name of a partnership firm. Which action is most appropriate before allowing the account to be operated?
Correct
The bank should identify and verify the firm and its beneficial owners as required, obtain relevant constitution and business documents, and establish who is authorised to operate the account. The partnership deed and mandate/authority help determine the partners’ powers and account operation instructions. A firm’s account should not be treated exactly like an individual’s account, and an oral instruction from one person is not a substitute for proper authority and documentation.
Incorrect
The bank should identify and verify the firm and its beneficial owners as required, obtain relevant constitution and business documents, and establish who is authorised to operate the account. The partnership deed and mandate/authority help determine the partners’ powers and account operation instructions. A firm’s account should not be treated exactly like an individual’s account, and an oral instruction from one person is not a substitute for proper authority and documentation.
Unattempted
The bank should identify and verify the firm and its beneficial owners as required, obtain relevant constitution and business documents, and establish who is authorised to operate the account. The partnership deed and mandate/authority help determine the partners’ powers and account operation instructions. A firm’s account should not be treated exactly like an individual’s account, and an oral instruction from one person is not a substitute for proper authority and documentation.
-
Question 16 of 20
16. Question
A customer has a fixed deposit that has matured but has not been renewed or paid out. What is the sound banking practice?
Correct
The bank should deal with the matured deposit according to the customer’s instructions, the deposit contract and applicable RBI directions. It should not assume that every matured deposit automatically renews on identical terms. Where a deposit remains unclaimed or unpaid, the applicable rules on interest, customer contact, classification and eventual transfer to the Depositor Education and Awareness Fund may become relevant depending on the period and circumstances. The bank should preserve accurate records and act in accordance with current instructions.
Incorrect
The bank should deal with the matured deposit according to the customer’s instructions, the deposit contract and applicable RBI directions. It should not assume that every matured deposit automatically renews on identical terms. Where a deposit remains unclaimed or unpaid, the applicable rules on interest, customer contact, classification and eventual transfer to the Depositor Education and Awareness Fund may become relevant depending on the period and circumstances. The bank should preserve accurate records and act in accordance with current instructions.
Unattempted
The bank should deal with the matured deposit according to the customer’s instructions, the deposit contract and applicable RBI directions. It should not assume that every matured deposit automatically renews on identical terms. Where a deposit remains unclaimed or unpaid, the applicable rules on interest, customer contact, classification and eventual transfer to the Depositor Education and Awareness Fund may become relevant depending on the period and circumstances. The bank should preserve accurate records and act in accordance with current instructions.
-
Question 17 of 20
17. Question
Under the cheque truncation system (CTS), what is the principal purpose of truncation?
Correct
Cheque truncation stops the physical movement of the cheque beyond a point in the clearing process. The presenting bank sends an electronic image and relevant data through the prescribed clearing system, reducing transit time and the risks and costs associated with physical cheque movement. The paper cheque is not simply destroyed at the customer’s counter, and truncation does not remove the need to check the instrument and follow clearing rules.
Incorrect
Cheque truncation stops the physical movement of the cheque beyond a point in the clearing process. The presenting bank sends an electronic image and relevant data through the prescribed clearing system, reducing transit time and the risks and costs associated with physical cheque movement. The paper cheque is not simply destroyed at the customer’s counter, and truncation does not remove the need to check the instrument and follow clearing rules.
Unattempted
Cheque truncation stops the physical movement of the cheque beyond a point in the clearing process. The presenting bank sends an electronic image and relevant data through the prescribed clearing system, reducing transit time and the risks and costs associated with physical cheque movement. The paper cheque is not simply destroyed at the customer’s counter, and truncation does not remove the need to check the instrument and follow clearing rules.
-
Question 18 of 20
18. Question
A bank receives a valid garnishee order attaching a customer’s debt balance. Which statement best describes the bank’s position?
Correct
A garnishee order is a court process directed to a third party who owes money to the judgment debtor; a bank may be a garnishee in relation to a customer’s credit balance. The bank must carefully read the order, identify the covered account and amount, and comply with the applicable legal requirements. The order does not automatically attach every kind of account or every future credit in all circumstances; the effect depends on the wording of the order and applicable law.
Incorrect
A garnishee order is a court process directed to a third party who owes money to the judgment debtor; a bank may be a garnishee in relation to a customer’s credit balance. The bank must carefully read the order, identify the covered account and amount, and comply with the applicable legal requirements. The order does not automatically attach every kind of account or every future credit in all circumstances; the effect depends on the wording of the order and applicable law.
Unattempted
A garnishee order is a court process directed to a third party who owes money to the judgment debtor; a bank may be a garnishee in relation to a customer’s credit balance. The bank must carefully read the order, identify the covered account and amount, and comply with the applicable legal requirements. The order does not automatically attach every kind of account or every future credit in all circumstances; the effect depends on the wording of the order and applicable law.
-
Question 19 of 20
19. Question
Under the Liberalised Remittance Scheme (LRS), which statement is correct for a resident individual, subject to applicable rules and exclusions?
Correct
The RBI’s LRS generally permits a resident individual to remit up to USD 250,000 per financial year for permitted current or capital account transactions, or a combination of both, subject to the scheme’s exclusions and conditions. It is not a scheme for companies, firms or other entities. Banks must apply the latest RBI/FEMA requirements, purpose declarations and tax-collection rules where applicable; a permitted limit does not mean every transaction purpose is allowed.
Incorrect
The RBI’s LRS generally permits a resident individual to remit up to USD 250,000 per financial year for permitted current or capital account transactions, or a combination of both, subject to the scheme’s exclusions and conditions. It is not a scheme for companies, firms or other entities. Banks must apply the latest RBI/FEMA requirements, purpose declarations and tax-collection rules where applicable; a permitted limit does not mean every transaction purpose is allowed.
Unattempted
The RBI’s LRS generally permits a resident individual to remit up to USD 250,000 per financial year for permitted current or capital account transactions, or a combination of both, subject to the scheme’s exclusions and conditions. It is not a scheme for companies, firms or other entities. Banks must apply the latest RBI/FEMA requirements, purpose declarations and tax-collection rules where applicable; a permitted limit does not mean every transaction purpose is allowed.
-
Question 20 of 20
20. Question
Which statement correctly distinguishes an NRE account from an NRO account?
Correct
An NRE account is generally used for eligible foreign earnings remitted to India; balances and interest are generally repatriable, subject to applicable rules. An NRO account is generally used to manage income earned in India by a non-resident, such as rent or pension; repatriation is subject to prescribed conditions and limits, and tax treatment differs. Banks should apply current FEMA directions and tax law rather than assuming both accounts have identical repatriation and tax treatment.
Incorrect
An NRE account is generally used for eligible foreign earnings remitted to India; balances and interest are generally repatriable, subject to applicable rules. An NRO account is generally used to manage income earned in India by a non-resident, such as rent or pension; repatriation is subject to prescribed conditions and limits, and tax treatment differs. Banks should apply current FEMA directions and tax law rather than assuming both accounts have identical repatriation and tax treatment.
Unattempted
An NRE account is generally used for eligible foreign earnings remitted to India; balances and interest are generally repatriable, subject to applicable rules. An NRO account is generally used to manage income earned in India by a non-resident, such as rent or pension; repatriation is subject to prescribed conditions and limits, and tax treatment differs. Banks should apply current FEMA directions and tax law rather than assuming both accounts have identical repatriation and tax treatment.