(i)Authorised dealers may freely open NRE accounts in the names of NRIs/OCBs provided funds for the purpose are transferred to India in an approved manner in freely convertible foreign currency. While opening an account, authorised dealer should obtain an undertaking from the account holder that he would intimate the authorised dealer about his return to India immediately on his coming to India for permanent residence. This undertaking should be obtained in the account opening form itself. The account should be opened by the non-resident account holder himself and not by the holder of power of attorney in India on behalf of the non-resident.

(ii)Authorised dealers should obtain from OCB, along with the account opening form, a certificate from an overseas auditor/chartered accountant/certified public accountant of OCB in form OAC where the ownership/beneficial interest is directly held by NRIs and in form OAC 1 where it is held indirectly by NRIs. Similar certificates should be called for on an annual basis to ensure that the ownership/beneficial interest held by NRIs continue to be at or above the level of 60%. If the ownership/beneficial interest in OCB is reduced to a level below 60%, authorised dealers should intimate such a change to Reserve Bank immediately after they come to know of it, furnishing the name and address of the corporate body/trust and full particulars of the account maintained including the type of account and balance in it.

NOTE:
Opening of NRE accounts in the names of Pakistani/Bangladeshi nationals though of Indian origin requires Reserve Banks approval.