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| Newsletter for our NRI customers |
September 2003 | Vol 1 Issue 2
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Important: If you do not wish to receive this newsletter, write
to unsubscribe@hdfcbank.com with Unsubscribe as the subject. Please read
Disclaimer.
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Dear Customer,
Welcome to the latest edition of Connect, with a fresh new look and fresher content. We have tried to pack it all for you - attractive offers, RBI decisions, innovative investment opportunities and clarifications. Since many of these trends can affect your investments, we can help you in putting together a fresh investment plan.
Check out the powerful service - OneView for our NetBanking customers. It doesn't matter if you're a Citibank, ICICI Bank, HSBC India, Standard Chartered Bank and/or Global Trust Bank account holder. You can view all your accounts on a single screen through OneView at no extra cost. Click here
to know more.
Read on. Sparing a few minutes on our newsletter has an added benefit - it helps you to stay well-informed!
Regards,
Neeraj Swaroop,
Country Head - Retail Banking
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Special offers on RIB*
The Resurgent India Bonds (RIBs) are coming up for redemption in October. As HDFC Bank's customer, you can save
up to Rs. 2500* on collection charges. Importantly, you start earning interest from the date we receive your RIB
proceeds. This facility has been extended to NRE deposits, which so far was available only on FCNR/RFC Deposits.
What's more - our team of experts from Investment
Advisory Services can help your RIB funds appreciate securely and steadily through a well formulated
investment plan.
Don't wait any longer. Write-in NOW to make the most of
your RIB funds.
(*Only for instruments representing RIB proceeds received before November 15, 2003. Available for USD
instruments payable at New York, GBP instruments payable at London and Euro instruments payable at
Frankfurt.)
ATM card to Mandate Holders
Make it easier for your family in India to access and manage your NRI savings account. You can now appoint your
relative or friend as a Mandate holder who can operate your account on your behalf, through an individual ATM
card.
Foreign Currency Swap Account for 3 years
Now, you can earn better returns than a 3 year FCNR deposit. All you need to do is book a 3 year NRE deposit, and thereby book forward cover too. You can also hedge against rupee depreciation by availing of the forward cover on your existing NRE deposits. More.
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Better sound through Research!
If you're a connoisseur of fine sound, then Bose would be a familiar name.
That brings us to one of the early NRIs (well before the term caught on!) - Nani Gopal Bose, father of Dr. Amar Bose (of the famed speakers).
More on Amar Bose, his son: Amar was always the hybrid engineer-entrepreneur, starting a radio repair shop in 1943. He went on to study Electrical Engineering, and completed his Ph.D. from MIT. His research on psycho-accoustics at MIT, led to the foundation of Bose Corp in 1964.
Dr. Bose was disappointed with a new stereo system he had bought, for it failed to reproduce the realism of a live performance. He aimed to design a speaker that would emulate the symphony hall experience in the home.
Read
one of his speeches. | |
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Govt. Bars NRIs from Small Savings Schemes
On August 1, 2003, the Government of India announced that Non-resident Indians would no longer be eligible to
invest their monies in small savings instruments such as Public Provident Fund (PPF), National Savings Certificates
(NSCs) and Post Office deposits.
The objective is to block arbitrage opportunities for those seeking to take advantage of the higher interest rates in
this country vis-a-vis those prevailing overseas.
RBI to rationalize NRI deposit interest rates
On July 17th, the RBI announced that interest payable on fresh deposits should not exceed 250 basis points above
the dollar London Inter-Bank Offered Rate (Libor) of corresponding maturities. Although it would make returns less
attractive, they would still be higher than what NRIs earn overseas.
RBI has said that the ceiling has been set "to provide consistency in the interest rates offered to non-resident
Indians". More.
Mutual funds: The Land and Gold versions!
Many investors turn a bit apprehensive about investing in mutual funds just because they are too risky - especially
equity related funds. With low interest rates, bank deposits too have lost some of their sheen. Indians are
re-discovering the value of traditional investment avenues - land and gold.
There are several proposals to set up real estate and gold based mutual funds. They allow individuals with
moderate amounts to become part owners of the prized yellow metal, or prime land. The investor can realize his
profits immediately when he needs cash.
Here's interesting information on real estate mutual funds. (from Rediff/Business Standard, by Subhomoy
Bhattacharjee & Parul Gupta)
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The Bulls may rule the Roost
The stock indices are steadily inching their way upwards, despite an occasional technical correction or profit
booking tugging the upward surging graph on some days. Is this thing for real?
The results so far are encouraging. Sensing the mood, FIIs have become active. With interest rates falling, equity
has become a viable alternative to investors. NRI investors were a major factor in the success of Maruti Udyog's
IPO. It might just be the correct time to invest in equities.
Here's an apt article from Businessworld, authored by Niranjan Rajadhaysha, Supriya Kurane and
Vikas Dhoot.
Share Sale & Transfer: A few aspects of RBI's stand
1. Is permission of Reserve Bank required by NRIs for sale/transfer of shares/debentures of Indian companies
to other NRIs?
No. Transfer of shares/debentures of Indian companies by NRIs to other non-residents does not require permission
of Reserve Bank. However, the transferee NRI would need permission for purchase of such shares for which an
application is required to be made to Reserve Bank in form FNC 7.
2. What is the procedure for sale/transfer of shares/debentures/bonds held by NRIs with repatriation
benefits?
In the case of shares/debentures/bonds acquired by NRIs through stock exchanges under the Portfolio Investment
Scheme, general exemption has been granted for transfer, if it happens through the same branch.
General exemption has also been granted for sale/transfer of shares/bonds/debentures of Indian companies by
NRIs/PIOs/OCBs through stock exchanges.
3. Can shares/debentures be given away as gifts to relatives?
Yes. Reserve Bank has granted general permission to NRIs to transfer, by way of gift, shares, bonds and
debentures of Indian companies held by them with Reserve Bank's general/special permission to their resident close
relative/s.
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RNOR: The definition
The Finance Act of 2003 (w.e.f 1.4.2004) redefines RNOR (Resident but Not Ordinarily Resident) as:
"An individual who has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less."
Complex, isn't it? Well, the objective of the amendment is to widen the base of taxable individuals. Based on the earlier understanding of the law, a large number of people claimed RNOR status and were outside the tax net.
However, the new definition will come into effective after March 2004.
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The Connect ezine, apart from HDFC Bank News is based on information obtained from publicly
available sources.
Whilst every care has been taken in compiling this publication, HDFC Bank does not accept responsibility for the
accuracy of its contents or the linked information, nor for the consequence of any reliance that may be placed
upon it. The ezine is not intended to provide professional advice.
All trademarks and logos belong to their respective owners.
For private circulation only
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