NRI Fixed Deposit in India: Features, Eligibility, Tax and How to Apply

Bajaj Finance’s published NRI Fixed Deposit page identifies the following customer groups:

• Non-Resident Indians (NRIs)
• Overseas Citizens of India (OCI)
• Eligible Persons of Indian Origin (PIO)

Eligibility remains subject to the issuer’s requirements, applicable law and the documents provided. A person’s immigration status or nationality alone should not be treated as confirmation of eligibility.

Before applying, contact Bajaj Finance or its authorised representative to confirm whether your category of residence, citizenship or overseas documentation is accepted.

The documents required depend on the applicant’s circumstances and the issuer’s KYC requirements. Bajaj Finance’s published information identifies the following documents for NRI applicants.

• PAN: Permanent Account Number details.
• Passport: A valid passport as proof of identity.
• Visa or residence documentation: Relevant visa, work permit, permanent residence permit or other documentation requested by the issuer.
• Address proof, where required: An accepted Indian address document or other evidence specified during the application.
• NRO bank details: Bank statement, passbook or other account evidence as requested.
• Signed application form: The completed and signed form required for the deposit.

Additional documentation may be requested depending on the applicant’s circumstances. Confirm the latest checklist before sending documents or arranging payment.

Bajaj Finance’s published information states that NRIs need to submit the required KYC documents and a signed application form at a Bajaj Finance branch. NRIs should confirm the current application procedure with an authorised representative before proceeding.

The general process is as follows:

1. Contact Bajaj Finance or an authorised representative. Confirm your eligibility, current NRI deposit options, interest rates, tenure and application requirements.
2. Obtain the application form. Request the relevant NRI Fixed Deposit application form and instructions for submission.
3. Prepare the documents. Gather your PAN, passport, visa or relevant residence or work-permit documents, and any address or bank documents requested.
4. Select the deposit terms. Confirm the deposit amount, tenure, interest payout option, maturity instructions and premature withdrawal conditions.
5. Arrange payment from your NRO account. Bajaj Finance’s published guidance specifies an NRO account as the source of funds. Confirm the accepted payment method and account details before making the transfer.
6. Submit the signed application and supporting documents. Follow the branch or representative’s instructions and retain proof of submission.
7. Confirm the booking. Obtain the deposit acknowledgement and receipt. Check that the deposit amount, applicable interest rate, tenure and maturity details are accurate.

Do not transfer funds from an NRE or FCNR(B) account on the assumption that the payment will be accepted. Confirm the permitted source of funds and payment instructions before initiating the transaction.

Bajaj Finance’s published NRI Fixed Deposit information specifies that funds must be received from an NRO account. It also lists cheque, NEFT and RTGS as accepted payment methods, subject to the current terms.

An NRO account is generally used to manage eligible income and financial transactions in India for a person resident outside India. It is distinct from an NRE account, which has different rules for permitted credits, tax treatment and repatriation.

Before transferring funds, verify the following with the issuer:

• The NRO account from which payment must be made.
• Whether a cheque, NEFT or RTGS is accepted for your application.
• The correct beneficiary and payment reference details.
• How funds will be returned if the application cannot be completed.
• The bank account to which interest or maturity proceeds will be paid.

This check can help avoid delays caused by an incorrect source account or an unsupported payment method.

Tax treatment depends on the type of deposit, the depositor’s tax status and the applicable law. Do not assume that all deposits held by NRIs are tax-free.

Is TDS applicable to NRI Fixed Deposit interest?

Interest earned on a company fixed deposit may be subject to tax deducted at source (TDS) under the applicable Indian tax rules. The applicable rate, documentation requirements and final tax liability depend on the circumstances and rules in force.

TDS is a tax deduction made at the time specified by law. It is not necessarily the final amount of tax payable. An NRI may need to consider the interest when determining Indian tax-filing obligations.

Check the current guidance from the Income Tax Department and obtain tax advice if you are unsure how the rules apply to your deposit.

Can an NRI claim benefits under a DTAA?

India has Double Taxation Avoidance Agreements (DTAAs) with various countries. These agreements may provide relief where income is taxable under the laws of more than one country.

However, relief is not automatic. Eligibility depends on the agreement between India and the country concerned, the nature of the income, tax residency and the documentation or other conditions required. A DTAA does not necessarily mean that no Indian tax or TDS will apply.

Before investing, check the rules relevant to your country of tax residence and seek professional advice where necessary.

Is a Bajaj Finance NRI Fixed Deposit tax-free?

Do not assume that interest from a Bajaj Finance NRI Fixed Deposit is tax-free. The tax treatment should be confirmed under the rules applicable to the deposit and the depositor’s circumstances. TDS may apply, and any treaty relief is subject to the relevant conditions.

Repatriation means transferring money from India to another country. The rules depend on the type of account, source of funds, nature of the deposit and applicable foreign-exchange regulations.

NRE, NRO and FCNR(B) bank deposits have different repatriation features. For example, balances in an NRO account are generally subject to prescribed conditions and limits when transferred abroad. These rules should not be automatically applied to every company deposit.

Before investing in a Bajaj Finance Fixed Deposit, ask the issuer how interest and maturity proceeds will be paid and what documentation is needed if you intend to transfer the money overseas. You may also need advice from your bank or a qualified tax professional.

Premature withdrawal conditions depend on the specific deposit terms and applicable rules. An early withdrawal may be restricted or may change the interest payable.

Before booking, confirm:

• Whether premature withdrawal is permitted for the deposit.
• Any minimum holding period or other restrictions.
• How interest would be calculated if the deposit is closed early.
• The process and documents needed to request withdrawal.

Do not assume that the rules for an NRE bank FD or an ordinary resident FD automatically apply to a company deposit held by an NRI.

The NRI Fixed Deposit page states that loans against fixed deposits are not available to NRIs, OCIs and other eligible people of Indian origin under this product. Confirm the current terms with the issuer if this feature is important to your financial planning.

If access to funds during the deposit tenure is a priority, compare the withdrawal conditions and liquidity arrangements before investing. Do not commit money that may be needed for immediate expenses without understanding the restrictions.

Compare the terms that affect the amount you receive and your ability to access the money.

The most suitable option depends on your financial goals, the time for which you can set aside the funds, and the tax and repatriation rules relevant to your circumstances.