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July 24, 2014
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Where to get maximum benefits to your NRFC Account

By Sandun W - Sat Sep 17, 10:28 am

NRFC accounts should be opened in the name of Sri Lankan Nationals or Non-Nationals who had at any time been a Sri Lanka national, while they are resident abroad or within 90 days of their return to Sri Lanka after employment abroad. These accounts may be held jointly, provided all joint account holders confirm these conditions.

The common facilities available for these accounts are;

  • Funds in the accounts are freely remittable for current international transactions and for the transfer of funds from one NRFC account to another.
  • Income on NRFC funds are exempted from income tax
  • NRFC account holders are eligible for loans up to 90% of the funds available in the accounts on pledging their NRFC accounts as collateral for the loan.
  • Credit card facilities are available against the funds in the NRFC accounts.

While above facilities remain common, Sri Lankan Banks offer many value added facilities to NRFC account holders. Listed below are facilities offered by the leading Banks in Sri Lanka.

National Savings Bank of Sri Lanka

  • Free of charge standing order facility for transfer of funds to the rupee accounts of NSB.
  • Gratuity payments according to bank’s regulations on the demise of the “Ranmasu” NRFC account holder.
  • Rupee loan up to 80% (fixed deposits) of the balance at an attractive interest rate.
  • Issuance of bank draft and execution of telegraphic transfers.
  • Provision for nomination.
  • Savings balances could be transferred to fixed deposits.

Bank of Ceylon

 

  • LIBOR + rate for deposits over USD 50,000/-
  • Interest earned free of income tax
  • Free Life Insurance Cover for Rs.100,000/- to Rs.1.0 Million*
  • Insurance cover up to Rs.50,000/- for loss of baggage when engaged in foreign travel*
  • Loan facility up to Rs.300,000/- for self employment*
  • Loan facility up to Rs.50,000/- to obtain basic amenities*
  • BOC Sarani’ Housing loan up to Rs.300,000/- at 5% Interest*
  • Rupee loan and Overdrafts up to 90% of the deposit
  • No commission for FC Inward Remittances at the receiving end
  • The facility of withdrawing cash through ATM Machines/VISA Electron globally.

People’s Bank

 

  • Non Resident minors whose parents/guardians are employed/living in foreign countries.- NRFC. 1% interest higher than the prevailing interest rates of NRFC Accounts
  • Funds could be transferred in foreign exchange for educational purpose.

Hatton National Bank

HNB’s NRFC Account holders are insured under ‘Millennium Shield’. The value of compensation will increase proportionately to the balance maintained.

Category A/c balance (US$)* Age Limit Cover-Natural death Cover-Accidental death
1 USD 200 – 2,499 Below 65 years LKR 100,000 LKR 200,000
2 USD 2,500 – 7,499 Below 65 years LKR 200,000 LKR 400,000
3 USD 7,500 & above Below 60 years LKR 500,000 LKR 1Mn
Over 60 years but below 65 years LKR 250,000 LKR 1Mn

* – Or its equivalent in any other designated currency

Eligibility Criteria

Compensation will be considered on the basis of continuous maintenance of the required balance for a period of six months immediately preceding the event leading to the claim. Claims should reach the bank within three (3) months of the date of the event. Claims presented thereafter will not be processed under any circumstances. Claims will be paid in Sri Lankan Rupees to the dependent after the bank establishes the bona fides beyond doubt.

Documents required to submit a claim:

  • Proof of age (a certified copy of the Birth Certificate)
  • A certified copy of the Death Certificate
  • A certified copy of the Inquest Proceedings, if an inquest was held, in the event of a death due to an accident
  • A certified copy of the Marriage Certificate, if married
  • If there are children above the age of maturity, a letter of consent from them to make the payment to the surviving parent. If unmarried, a letter of consent to be given by brothers/sisters, if any, to make the payment to a party of their choice

Housing Loans

If you are a NRFC account holder at HNB and have sufficient earnings abroad to meet a monthly commitment on a housing loan, then you are eligible to apply for a foreign currency housing loan. A mortgage of the house and property is required as collateral.

The maximum period for repayment is 5 years subject to your employment overseas and repayment capacity. Repayment should be in foreign currency earned overseas. Loans in Sri Lanka Rupees can be obtained up to 90% of rupee equivalent of your foreign currency deposit.(Please contact your branch manager for further details.)

Seylan Bank

If you maintain a minimum balance of USD 500 or equivalent for a period of six calendar months, you qualify for:
A complimentary Tikiri account to any child living in Sri Lanka nominated by the account holder (below 15 years of age) with a deposit     of Sri Lankan Rupees 500/-

A life insurance cover, free of charge, depending on the account balance maintained as detailed below.

Minimum deposit for 6 months Natural death cover Accidental Death cover
USD 500 -2,500 LKR 100,000 LKR 200,000
USD 2,501 – 7,500 LKR 200,000 LKR 400,000
USD 7,501 upwards Lkr 500,000 Lkr 1,000,000

For payments under the insurance cover, the bank would consider the minimum balance maintained in the account for 6 months prior to date of claim

A Rupee loan facility of 200% of the account balance for income generating purpose once you return to Sri Lanka. (You will have to     agree to make a minimum monthly deposit for a period of 24 months while you are abroad to qualify for the loan scheme)

Although the value added benefits offered by the private sector Commercial Banks are lucrative than the facilities offered by the State Banks, you get 100% Government guarantee for the deposits in State Banks.

ovided all joint account holders confirm these conditions.ulli/li

Sandun W

Sandun joined Lanka Help Magazine as a contributor in June, 2011. He has been consistently writing articles to our magazine. Many useful articles of this site are under Sandun's name.

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