Module: | NRI Banking Basics & NRE Accounts
Q3: Mr. Sharma, an NRI, visits his bank in Delhi, with four different cheques he wishes to deposit into his NRE account. Which of the following cheques will the bank REJECT, based on NRE permissible credit rules?
1. A cheque for monthly rent, received from his tenant in Delhi.
2. A dividend warrant from an Indian company, for shares held on a non-repatriable basis.
3. A cheque representing proceeds, from his local business in India.
4. A foreign currency draft, brought from abroad during his visit.
Select the correct answer using the code given below:
2. A dividend warrant from an Indian company, for shares held on a non-repatriable basis.
3. A cheque representing proceeds, from his local business in India.
4. A foreign currency draft, brought from abroad during his visit.
Select the correct answer using the code given below:
✅ Correct Answer: C
NRE accounts are for foreign earnings.
Local income like rent, dividends, and business proceeds must go to an NRO account.
Only the foreign currency draft is a permissible credit.
Local income like rent, dividends, and business proceeds must go to an NRO account.
Only the foreign currency draft is a permissible credit.