banknetindia.com invites you to invest in India Millennium Deposit(IMD) programme.The State Bank of India (SBI) has already received more than $2 billion for its `India Millennium Deposits' (IMD) programme.IMD programme will close on November 6, 2000 & is expected to mobilise nearly $ 5 billion.
IMDs represent foreign currency denominated deposits in India
- In the form of deposit certificate
- Denominated in US Dollar, Pound Sterling, Euro
Eligibility: Non-Resident individuals of Indian Nationality or origin (NRIs), Overseas Corporate Bodies (OCBs), and banks acting in fiduciary capacity on behalf of NRIs/ OCBs are eligible. Applications can also be made in the name(s) of minor(s) through his/her/their natural/legal guardian provided minor(s) is/are NRI(s).
Joint holdings: NRI / Resident Indian can be second holder
USD (US Dollar)1000, 5000, 10000, 50000200010008.50% p.a.8.50% p.a.
GBP (Pound Sterling)1000, 5000, 10000, 50000200010007.85% p.a.7.85% p.a.
EUR (Euro)1000, 5000, 10000, 50000200010006.85% p.a.6.85% p.a.
Period of deposits: The term of the IMDs will be 5 years from the Effective Date.
- Regular Deposit with interest being paid half yearly
- Cumulative Deposit
Repatriability: The principal amount of the deposit and the interest thereon will be fully repatriable in respect of depositors who remain non-resident at the time of such payment.
Premature encashment: Will be permitted after the expiry of six months from the effective date of deposit in non-repatriable Indian rupees.
Gifts / transfers:The IMD certificates can be gifted by NRIs (except minors)/ OCBs/ Banks acting in fiduciary capacity, once only, to any person resident in India or to any Charitable Trust recognised under the Income Tax Act, 1961 in India. These are transferable between NRIs/ OCBs/ Banks acting in fiduciary capacity on behalf of NRIs/ OCBs, by endorsement and delivery. These are also transferable by endorsement and delivery by NRIs/ OCBs/ Banks acting in fiduciary capacity on behalf of NRIs/ OCBs to a resident Indian/ Charitable Trust in India through gift only.
NOTE:IMD certificates may not be sold, resold, pledged, transferred, assigned or delivered within the United States or to U.S. Persons, including NRIs or OCBs located or resident of United States.
Tax treatment: Income on the IMDs will be exempt in the hands of the depositor from Indian Income Tax. The IMDs will also be free from Wealth Tax and Gift Tax in India. The tax concessions will be available to the donee and assignees also in India. The tax concessions will be available till the maturity of the IMDs to the NRI depositors/ donees/ assignees if they return to India before maturity of the IMDs and also to resident donees.
Loans and advances: Non-Resident depositors, resident depositors (first holder in case of joint holders of certificates) as well as third parties who are resident in India can get loans in non-repatriable Indian rupees from banks authorized to deal in foreign exchange in India, at their discretion, against collateral of the IMDs, in accordance with the guidelines that may be issued by the Reserve Bank of India in this regard.
For complete details of IMDs click here