Module: | NRI Banking Basics & NRE Accounts
Q4: Rahul, an NRI, arrives in India for a vacation, carrying USD 6,000 in cash. He wishes to deposit this cash into his NRE account. Which of the following statements correctly describe, the banking procedure?
1. The bank can accept the foreign currency notes, for deposit into the NRE account.
2. Rahul must provide a Currency Declaration Form (CDF) to the bank, since the amount exceeds the specific custom threshold for notes.
3. The bank will credit the account in USD, without converting it to Rupees.
4. If Rahul had brought Indian Rupee cash from abroad, he could not deposit it into the NRE account.
2. Rahul must provide a Currency Declaration Form (CDF) to the bank, since the amount exceeds the specific custom threshold for notes.
3. The bank will credit the account in USD, without converting it to Rupees.
4. If Rahul had brought Indian Rupee cash from abroad, he could not deposit it into the NRE account.
✅ Correct Answer: A
Banks accept foreign notes for NRE deposits.
CDF is mandatory if currency notes exceed USD 5,000 or total cash/TCs exceed USD 10,000.
NRE accounts are maintained in Rupees, so conversion happens immediately.
CDF is mandatory if currency notes exceed USD 5,000 or total cash/TCs exceed USD 10,000.
NRE accounts are maintained in Rupees, so conversion happens immediately.