A Non Resident Indian (NRI) cannot hold a regular savings bank account in India as is available with persons resident in India. A Non Resident Indian having earnings both abroad and in India can open bank accounts in a both countries which means they can open an account in India and in the country they reside.

The Foreign Exchange Management Act (FEMA) Act, states that all Non Resident Indians are not allowed to hold a regular saving bank account in their name in India. It is mandatory that you convert all balances lying in your savings bank and fixed deposits to a Non-Resident Rupee (NRE) / Non-Resident Ordinary Rupee (NRO) account in India. They are not allowed to use the savings account in the home country and in case it is discovered it can attract a hefty penalty on the NRI’s. Although there is no time limit prescribed in the FEMA Guidelines however every Non Resident Indian must convert there accounts within 90 Days of change in residential status from Resident to Non Resident.

The NRI’s are required to open an NRE or NRO account in any of the banks in India. It can be used to send the money they earn abroad to India at any point of time and they can use the bank account to retain their incomes earned from India such as interest earned on NRI fixed deposit, NRI Rental Income, NRI Investment Income, NRI Capital Gains Income, NRI Property Income and NRI Business Income earned in India.

The Non Resident External Rupee NRE account is an Indian rupee-denominated account in form of savings, recurring deposits, or fixed deposits. The foreign currency deposited by the NRE is converted into Rupee INR on the date of transfer. You can transfer your funds (Principal & Interest amount) to a foreign account from an NRE account without any complications and restrictions. The deposits allowed in the NRE Account is only from Incomes earned outside India. The funds held in an NRE account, along with tax free interest, are freely repatriable. Furthermore, Indian banks offer rather attractive rates on fixed deposits on NRE accounts, and the interest earned is not taxable in India.

The Non Resident Ordinary Rupee Account NRO stands for Non-Resident Ordinary account. It refers to the savings or Fixed Deposit account of a Non-resident Indian in a bank in India and is a savings account held by NRIs in India to manage their income earned in India. The deposits in the accounts are incomes earned in India such as NRI Rental Income from House Property, NRI Interest Income on Fixed Deposits or NRI Investment Income or Any NRI Income earned in India. The account holders can make all payments from NRO Bank A/c for meeting their travel expenses, visit expenses, remittance to family and dependents, EMI Payments, Investment Payments and payments to parties in India. The NRO Bank account allows you to receive funds in Indian or Foreign currency. Although there is no limit on the number of accounts you can hold as a Non Resident but it is advisable that we consolidate all our transactions in one NRO / NRE bank account in India. Every time I go there I feel like a partnership strategy launch party iPad twitter equity non-disclosure agreement. Success metrics direct mailing low hanging fruit value proposition churn rate entrepreneur, Network effects mass Thailand and Canada

5 Facilities You Must Consider While Chosing your Bank Account in India

It is most difficult for a Non-Resident Indian or a Foreign Citizen to Choose an appropriate bank in India from his resident country. There are instances when not much support is available from the banks and NRI’s feel stranded. It is uneconomical to visit India for managing their banking transactions. Our team supports non-residents in foreign countries to open bank accounts in India and also helps them to execute the necessary paperwork and documents. Whether it is an bank account opening for NRI or Repatriation of Funds from India to Foreign Country or simple task such as managing bank statements etc. we guide them in all such processes.

While deciding which bank to choose in India for Account Opening we suggest to look out for following key account facilities which would ease your life and smoothen the operation of your NRI Bank Accounts.

EASE OF ACCOUNT OPENING

With the digital progress in India, a lot of banks especially in the private sector have started opening bank accounts by accepting self-accepted copies of documents. This eliminates the need to travel to India for Bank Account Opening. Sitting in the comfort of your home in your resident country you can open and operate a bank account in India. Many Banks also provide the facility of document collection from your resident foreign country through DHL, FEDEX etc. which can also help you save on courier costs.

INTERNET BANKING

Most of the private banks in India can be operated completely on Net Banking. Net Banking eliminates the need to pass on physical cheques or documents or forms for simple tasks such as Fund Transfer, Cheque Book Requests, etc. Sitting anywhere in the world you can access your NRO/ NRE bank accounts in India to do all banking transactions at your convenience.

REMITTANCES

What is the process of remittance of money from overseas to Indian account and vice versa. A lot of the Indian Banks have dedicated NRI relationship managers who handle the accounts and guide you through the banking processes based on your needs. Many Banks also provide the facility of document collection from your resident foreign country through DHL, FEDEX etc. which can also help you save on courier costs.

NO. OF BRANCHES & ATM’S IN INDIA

The presence of Bank and Its ATM’s can easily be reviewed from a bank’s website. The bank and its branches should be easily accessible from cities you visit during your visit to India. Banks with limited branches and ATM can land in you problems when you run out of cash during your travel visit or if you have to exercise the option of visiting branch for some tasks.

OVERSEAS BRANCHES OF INDIAN BANK

Many banks in India have overseas branches in countries like United Kingdom, USA, Canada, Singapore, Dubai, Australia etc. If you choose a bank that has an overseas branch near to your residence it can resolve many issues for you.

INTEREST RATES ON NRE & NRO FIXED DEPOSITS

Interest rates on Fixed Deposit and NRO Bank Balance or NRE Bank Balances have always been an attraction for NRI Investors. Alternatively many NRI’s invest in Fixed Deposits in India which gives them a higher return on NRI Investment in comparison to their Resident Foreign Country. It is worthwhile to mention the Interest Earned on NRE Bank Balances and NRE Fixed Deposits are tax-free in India. Therefore, no taxes are deducted at source from NRE Bank Accounts in India.

05 Based on the Status of Account Holder being Non-Resident Indian, Person of Indian Origin and Sea Farer Employed with Foreign Vessel the document requirement are as under

Documents Required for Opening NRO Bank Account for NRI – Non-Resident Indian

01.) Photocopy of Passport pages where your name, photograph, date and place of birth, specimen-signature, date of issue/expiry and address details are recorded; and
02.) Copy of valid Visa / Work / Residence Permit (the visa could be either in the passport or given separately); and
03.) Proof of Mailing Address (local or overseas address as selected for communication on the account opening form); and
04.) Latest colour photograph (passport sized)

Documentation for Person of Indian Origin (PIO) for account opening in India:

01.) Photocopy of Foreign Passport pages where your name, photograph, date and place of birth, specimen-signature, date of issue/expiry and address details are recorded; and
02.) Copy of valid Visa / Work / Residence Permit (required only if the country of mailing address is different from the country of citizenship and India, the visa could be either in the passport or given separately); and
03.) Additionally, applicant has to provide any of the below-mentioned document, if the place of birth is outside India:
04.) Copy of Indian passport of spouse OR
05.) Copy of Indian passport held by self or parents/grandparents at any time OR
06.) PIO Card OR
07.) OCI (Overseas Citizen of India) Card
08.) Proof of Mailing Address (Indian or overseas address as selected for communication on the account opening form); and
09.) Latest colour photograph (passport sized)

Documentation for Seafarer employed with foreign vessels for Account Opening in India.

01.) Photocopy of Passport pages where your name, photograph, date and place of birth, specimen-signature, date of issue/expiry and address details are recorded; and
02.) Copy of valid Transit / Work Visa (the visa could be either in the passport or given separately); OR Copy of Continuous Discharge Certificate (CDC). The CDC must indicate the latest discharge stamp / last date of arrival in India, or a declaration that you are sailing for the first time; and
03.) Valid Contract Copy OR Original letter on the letterhead from agent/principal carrying logo and address providing contract details namely:

1. Name of the employee
2. Employment in the principal shipping company (Name of the principal were employed & Address of the overseas company)
3. Name of the vessel & flag.
4. Name of the port.
5. Commencement of contract.
6. Tenure.
7. Salary in foreign currency.
8. Passport no.; and

04.) Merchant Navy Declaration – Format provided by Banks and
05.) Proof of Mailing Address (Indian Address only); and
06.) Latest colour photograph (passport sized)

Attestation of Documents for Bank Account Opening in India

The above documents mentioned under 1, 2, 3 and 4 needs to be attested by:

01.) An overseas bank official located and operating in Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, Greece, Bahrain, Qatar, Kuwait, Oman, Saudi Arabia, UAE, Hong Kong, Iceland, Ireland, Italy, Japan, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Portugal, Russian Federation, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, United Kingdom and USA only. OR
02.) Any Branch of an Indian Scheduled Commercial Bank having overseas branch OR
03.) Notary Public or Equivalent Authority OR
04.) The Indian diplomatic mission in the applicant’s country of residence OR
05.) Self-Attestation. In case of Self Attestation, all documents submitted should be signed by respective account holders with the words ‘TRUE COPY’. Additionally,
06.) A signed cheque is drawn in favour of Bank for account opening in India AND
07.) An original bank account statement (not more than 3 months old) or
08.) Original credit card statement (not more than 3 months old) or
09.) Original utility bill (electricity/piped gas/telephone/water – not more than 3 months old)