Purpose Code P0014 - Non-resident deposit receipts (FCNRB/NRERA etc.)

Understand RBI regulations for receiving Non-Resident deposit receipts into FCNR(B), NR(E)RA, and other NRI deposit accounts. Learn eligibility, documentation, and how to apply this purpose code for inward remittance.

Purpose code P0014 is used when Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), or Persons of Indian Origin (PIOs) deposit funds into their Non-Resident bank accounts in India. This includes deposits into FCNR(B) (Foreign Currency Non-Resident Bank) accounts, NR(E)RA (Non-Resident External Rupee) accounts, NRO (Non-Resident Ordinary) accounts, and other permitted NRI deposit schemes. These deposits are treated as banking capital under FEMA and must be reported by Authorized Dealer banks, even if the funds are not immediately swapped into Rupees. Banks are required to correctly classify these inflows to ensure accurate reporting of Non-Resident deposits to the RBI.

This Purpose Code should be used only where the transaction fits its defined regulatory scope. Here's when you should and shouldn't use this code:

You should use this code when:

• Deposits into FCNR(B) accounts - Foreign currency deposits maintained by NRIs (in USD, GBP, EUR, etc.)
• Deposits into NR(E)RA accounts - Rupee deposits from foreign earnings, fully repatriable
• Deposits into NRO accounts - Rupee deposits from India-sourced income (rental, dividends, pension)
• Other NRI deposit schemes - Any RBI-permitted Non-Resident deposit products

Do not use this code when:

• Withdrawing or repatriating NRI deposits abroad (use appropriate outward codes)
• Receiving External Commercial Borrowings
• Receiving Foreign Direct Investment in equity
• Receiving interest income on deposits

RBI purpose codes are mandatory under FEMA to classify the nature of cross-border transactions entering or leaving India. They allow banks and regulators to accurately track foreign exchange flows and apply the correct regulatory, tax, and reporting treatment.

For individuals, businesses and institutions, correct purpose code usage:

• Ensures transactions are classified correctly under FEMA.
• Enables accurate reporting to the RBI and other regulators.
• Reduces delays caused by compliance checks or misclassification.
• Supports clean audit trails and tax reconciliation.

Bottom-line:

Using the correct purpose code helps ensure smooth processing, regulatory compliance, and faster credit of funds.

1. Select “P0014 – Receipts on Account of Non-Resident Deposits” when depositing funds into your NR account.
2. Provide account details, proof of NRI/PIO status, and source of funds documentation.
3. The bank conducts KYC verification and FEMA compliance checks.
4. Once approved, the funds are credited to your FCNR(B)/NRE/NRO account and reported to the RBI.

Additional Notes:

• Valid passport and overseas address proof are required to maintain NR account status.
• Maintain documentation showing the source of foreign funds.
• Additional RBI approvals may be needed depending on the instrument

• Using a generic or incorrect purpose code instead of the exact RBI-prescribed purpose code can lead to misclassification of the transaction under FEMA and trigger additional compliance checks by the bank.
• Mismatch between purpose code, invoice, and remittance narration may place the transaction on hold until clarification is provided.
• Submitting unclear or incomplete supporting documents that do not clearly describe the nature of the transaction often result in delays, as banks rely on documentation to validate FEMA compliance.
• Missing mandatory PAN or incomplete KYC documentation can prevent banks from releasing funds until verification is completed.
• Using service-related purpose codes for non-service transactions like capital receipts, investments, gifts, or refunds can result in incorrect regulatory treatment and potential reporting issues.
• Assuming small or recurring transactions do not require accuracy and repeated misclassification can attract regulatory scrutiny over time.

Cross-border payments require accurate purpose code selection and complete compliance documentation. Xflow helps businesses and individuals receive international payments while staying aligned with RBI and FEMA requirements.

With Xflow, you can:

• Select the correct purpose code with clarity
• Organize and maintain supporting documents
• Reduce compliance back-and-forth with banks
• Support FEMA compliant inward remittances