Multiple choice

An NRE-RA account can be opened as

  1. current, saving RD only

  2. saving, RD and FD only

  3. saving, current, RD and FD only

  4. FD and saving only
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This account was introduced as NRE scheme in 1970. It’s a Rupee account and the NRI can remit money to India from the funds abroad. This means that depositor is exposed to the currency rates risk. An NRE-RA account can be opened as saving, current, RD and FD only because these accounts are opened for the purpose of depositing income earned overseas. The funds held in these accounts can be remitted back overseas freely subject to terms and conditions of the resident country.

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