RBL NRE Account Review (Ratnakar Bank)

Not many have much positive to say about RBL NRE accounts. Here’s why.

Founded in 1943, Ratnakar Bank Limited (RBL) is among the oldest Indian banks still in existence. Today, it provides banking services to over 6.5 million customers via its 324 branches across the country.

While the bank has been rated the best small-sized bank by Business Today and KPMG in 2018, its NRI services leave much to be desired.  

RBL NRE Account Features

RBL (formerly known as Ratnakar Bank) offers a 6.5% annual interest rate for balances between ₹10 lakhs and ₹3 crores in its savings account for NRIs. Some key features of its NRE account are:   

• Both Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO) can open this account.
• The account is denominated in the Indian rupee.
• Income earned through interest is tax-free in India.
• You can conveniently credit the account either by inward remittances from a foreign bank or via money transfer from another NRE account. 
• You can open a joint account with another NRI.
• Using the power of attorney or mandate facility, you can appoint an Indian resident to operate the account on your behalf while you are overseas.
• There is a provision for full and free repatriation of funds outside India.  
• Interest rate is 5.5% for balances up to ₹1 lakh, 6% from ₹1 lakh to ₹10 lakhs, 6.5% from ₹10 lakhs to ₹3 crores and 7% from ₹3 crores to ₹5 crores. 
• Interest rate for NRI fixed deposits is 8.05%, which is among the highest in India. 
• Internet banking is free of charge and includes a variety of services, including online booking of an FD.
• Free international debit card, which can be used anywhere in the world.
• SMS banking facility, including free SMS alerts for added convenience.
• Bill Pay service allows you to manage your utility bill payments in a convenient and secure manner.
• With the payable-at-par cheque book, you can access your account from any RBL branch across India. 
• You are allowed to withdraw funds up to ₹1,00,000 per day through RBL ATMs. 
• You can make point of purchase (swipe) transactions of up to ₹2,00,000 per day.
• There are no charges on inward or outward remittances, foreign cheques and demand draft collections.

Limitations

• You are required to maintain an Average Monthly Balance (AMB) of ₹50,000. Failure to do so makes you liable for a non-maintenance charge. This charge is 5% of the balance shortfall, if the balance maintained is above 50% of the required amount and 10% if it is below 50%. 
• You can open an account online, but there is no option to liquidate online.
• Customer reviews indicate that the internet and phone banking services are not up to the mark.
• Customer care services are poor.
• RBL ATMs are few and far between. 

Advantages 

• Attractive interest rates on savings accounts and fixed deposits
• Full and free repatriation of funds outside India

Disadvantages

• High Average Monthly Balance (AMB) limit
• No option to liquidate online
• Poor internet and phone banking facilities and customer service

Have you banked with this bank? What do you think?

Let us know in comments below.