Benefits of Offshore Accounts

As a Non-Resident Indian or NRI, you can opt to continue banking in India. In this way, not only do you keep your roots but also have more variety in investments. In simple terms, an Offshore Banking Account is located outside the country of residence of the depositor.

Features of a Call Account

‘Call Account’ is a ‘Zero Balance’ Account which enables you to open in either US Dollars, GBP or Euros. There is no restriction to maintaining a minimum balanceand funds can be withdrawn at any time. An Offshore Banking account is useful for any Offshore Investments and/or placing overseas deposits with HDFC Bank.

Some benefits of Offshore Accounts include:

  • Access to many financial products.
  • Useful for overseas deposits.
  • Multi-currency transactions.

How Can Customers Open an Offshore Banking Account?

  • You can approach our Relationship Managers at our overseas branches in Dubai, Abu Dhabi and Kenya.
  • Submit necessary documents to open a Call Account or Offshore Account.
  • Your account will be opened at the HDFC Bank Bahrain branch.
  • You can carry out future transactions through the Relationship Managers.

Products and Services Offered By HDFC Bank for Offshore Accounts:

Now that you’ve understood what is an Offshore Banking Account for NRIs, here’s a summary of products and services you have access to:

Offshore Deposits

These have flexible tenures and you can open a deposit account in either US Dollars, GBP or Euros. The minimum tenure available is one month.

Offshore Bonds

These are essentially Global Corporate Bonds are great for capital appreciation. These Corporate Bonds by HDFC Bank are suitable for all your investment objectives. You can also have access to custodial services on these investments. Here’s a summary:

  • Loan against Global Corporate Bonds: You can avail offshore loan against bond held in the custody of HDFC Bank.
  • Leveraged Bonds: You can get up to 3 times leverage on your equity to invest in offshore bonds. [Leverage refers to borrowing for investment purpose.]

Offshore Mutual Funds

You can invest in a range of professionally managed international funds. Like bonds you have access to custodial services with International Mutual Funds. Here’s a summary:

  • Loan against Mutual Funds: Get a loan against your investment in HDFC Bank International Mutual Funds.
  • Leveraged Mutual Funds: Up to 3 times leverage on your investment. [Leverage refers to borrowing for investment purpose.]

Other Loans or Overdrafts

You can avail loans or an Overdraft from HDFC Bank for these investments held in India:

  • NRE and FCNR deposits
  • SBLC (issued by other Banks)
  • Mutual Funds & Shares

You can also apply for a Letter of Credit, Bank Guarantee or similar.

The loan facility falls under FEMA guidelines. Which means, you’ll be able to use the amount only overseas and not in India. You can achieve several offshore purposes like buying property abroad, offshore investments, personal expenses abroad or even overseas business funding.

So, get in touch with our Relationship Managers for more information on Call Accounts today!

Disclaimer: Kindly note, you’ll need to consult your income tax consultant to understand tax implications or computations.