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Anil

Anil Rego  |388 Answers  |Ask -

Financial Planner - Answered on Dec 26, 2022

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Venkatesh Question by Venkatesh on Dec 26, 2022Hindi
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Money

I am a resident of Bengaluru. I and my family are relocating to US next month. We have made some investments in Post office (SB account and Term Deposit), LIC policies, pension policy in ICICI and PPF accounts in SBI. While we are planning to get our SB accounts in the Banks converted to NRO accounts, we aren't sure whether we can continue our post office accounts, PPF in SBI, Pension policy in ICICI Prudential and LIC policies. Request you kindly confirm if we can:

1. Continue to hold SB a/c and Term deposits in Post office?

Ans: You can continue to hold these accounts. I would recommend that you close the SB account immediately and also the Term Deposit account (If the interest rate is not much higher than the current interest rates).

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |8260 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 20, 2025

Asked by Anonymous - Jan 02, 2025Hindi
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I m a person of Indian origin with citizenship of other country. I have bank accounts in India, both in INR and USD €. One of my Term deposit is with SBI while all others are BoB. I m thinking of options. 1. Encash it 2. Move to Bank of Baroda 3. Repatriate. As I m retiring option 3 is not favorable. If I encash it I m told I get INR equivalent to deposit. Moving to BoB appears to be best option but again according to SBI it will involve changing to INR and but USD snd then go to HQ of BoB to put it in Term Deposit. I also had cash USD 5,000 and wanted to deposit in Term Deposit but SBI says only District office can do that while in past they accepted it their branch. Another confusion is remittance of USD to be in Term deposit here but every time I try i get INR..... Plz if you have any guidance within thr laws guide me. Reason I want all in BoB is I am retired and want every thing within comfortable distance Thank yoy
Ans: As a person of Indian origin with overseas citizenship, your banking and term deposit management should focus on simplicity, accessibility, and compliance with regulations. Your goal to consolidate all term deposits in Bank of Baroda (BoB) for convenience is practical. Let’s evaluate your options and suggest the best approach.

Key Observations
You have INR and USD accounts in India, with term deposits spread across SBI and BoB.
You prefer keeping all deposits with BoB for ease of management post-retirement.
You face challenges in transferring USD and opening term deposits with USD funds.
You want a legally compliant and cost-effective solution that aligns with your retirement needs.
Option 1: Encash the Term Deposits
Process:
Encashing your SBI term deposit will provide INR equivalent to the deposit amount.
The proceeds can be deposited into your BoB account for reinvestment.
Advantages:
This is a straightforward process for INR deposits.
Funds can be reinvested into term deposits at BoB without additional conversion.
Disadvantages:
For USD term deposits, SBI may convert the amount into INR before crediting your account.
You may lose out on favourable USD interest rates or incur currency conversion charges.
Option 2: Move Term Deposits to BoB
Process:
Transfer INR term deposits directly to BoB upon maturity for reinvestment.
For USD deposits, SBI may convert them to INR before transferring to BoB.
BoB requires approval from their head office for accepting USD deposits, which could delay the process.
Advantages:
Consolidating all deposits into BoB ensures easier access and management.
BoB offers competitive interest rates on both INR and USD deposits.
Disadvantages:
Transferring USD term deposits requires conversion into INR and reconversion into USD at BoB.
Double currency conversion can result in exchange rate losses and fees.
Option 3: Repatriate the Funds
Process:
Transfer the USD term deposit amount to your overseas bank account.
Use these funds for investments or term deposits in your country of citizenship.
Advantages:
Repatriation is a compliant option under FEMA (Foreign Exchange Management Act).
Funds in your country of citizenship may be easier to access and manage.
Disadvantages:
You find this option unfavourable due to retirement and a preference for Indian banking.
Exchange rates and transfer fees may erode part of the value.
Additional Guidance for USD Cash Deposits
SBI's Policy on USD Deposits: As per current rules, only district or designated branches may handle USD cash deposits for term deposits. This rule ensures compliance with foreign exchange regulations.
Options to Consider:
Visit the designated SBI district branch to deposit USD cash into a term deposit.
Alternatively, convert the USD to INR and invest in a term deposit with INR.
Why Policies Changed: RBI regulations often impact how banks handle foreign currency transactions. These rules are in place to prevent unauthorised foreign exchange dealings.
Recommended Approach
Consolidate Deposits in BoB
This aligns with your preference for convenience and a single point of access.
Upon maturity, instruct SBI to transfer INR deposits directly to BoB.
For USD deposits, consult BoB to understand their procedures and avoid unnecessary conversions.
Minimise Currency Conversions
Currency conversion between INR and USD results in fees and exchange rate losses.
Avoid unnecessary conversions by keeping USD deposits in their original currency, if possible.
Check BoB's Foreign Currency Deposit Policies
Confirm with BoB whether your local branch can handle USD term deposits.
If not, clarify the procedure for head office approval and processing.
Use USD Remittances Wisely
If remittance results in INR instead of USD, it may be due to your bank's default settings.
Specify that the remittance should be credited to your USD account. This ensures funds remain in the desired currency.
Monitor Compliance with FEMA
Ensure all transactions comply with FEMA guidelines.
Seek assistance from your bank’s NRI desk for better clarity on compliance and documentation.
Final Insights
Your plan to consolidate all deposits in Bank of Baroda is a smart step for retirement management. Avoid unnecessary currency conversions and ensure compliance with RBI and FEMA rules. Consult the BoB branch manager and their NRI desk for personalised support to streamline the process.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Kindly formulate your query in a detailed manner so that the experts on Rediff can provide you with better solutions. If you don’t provide enough information, it will be difficult for them to assist you, as the gurus need to make informed predictions to answer your question. This platform is more transparent than others because you can see the profiles of the experts available here. Therefore, be open and provide precise details. Please note that the platform does not require personal information, and you can post your questions anonymously if you prefer.

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I have a crush on my colleague recently. We started as a friend but one day we get drunk on one of colleague house. We talk about life and love. I asked about his ex. He told his past relationship story how they break up. I also shared some of my past situationship. We live in a same colony. So we came back home together getting drunk I told him you can lean ur head on my shoulder. And he suddenly lean his head on my shoulder and he was sleeping and I wake him up when we reached our destination. He takes me to my house and I suddenly hold his wrist. I don't why did I hold him and next morning he yes hi (call my name)how are you I didn't respond properly I'm just like yeah good after that he seems to avoid me a lot he didn't talk to me much I caught him looking at me sometimes but it might be coincidence. I think he doesn't like me
Ans: Dear Anonymous,
I understand it must all be very confusing but I would suggest not jumping to conclusions. You think he doesn’t like you, but he might be thinking the same since you did not respond to him properly the next day. That could have triggered his current behavior. If you have feelings for him or if you even miss him as a friend, I would recommend you to clear the air with him. Just talk it out- you can explain how things got a little heavy the other day and that’s why you didn’t speak to him nicely and apologize if that made him feel bad. If even after that he continues to avoid you, then you will have better clarity.

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