A bank account for any NRI can be opened by an NRI or a Person Of Indian Origin (PIO) or an Overseas Citizen Of India (OCI), with an Indian bank to avail banking services in India. An NRI Bank Account is a unique type of bank account that can be opened in any Indian Bank by citizens who currently do not reside in India. An NRI could be having income in different foreign currencies like dollars, pounds, euros, etc. but in order to invest in India, an NRI would need an NRI bank account that can convert his foreign currency into Indian Rupee. For an NRI having income in India, it is also important to have an NRI account in India so that his earnings can be deposited in the said NRI account and then can be repatriated back to him post-conversion.
There are three types of bank accounts that an NRI can open to meet his banking needs in India:
An NRO account is an account held by NRIs primarily for managing their incomes earned or arising from India. An NRI can deposit any amount in Indian rupees in NRO Account. An NRO account also lets you receive funds in foreign currency from any foreign country.
An NRO account is mainly opened by NRIs to manage their deposits and interest incomes like dividends, interest, and rent. NRIs can only withdraw Indian Rupee from NRO Account as this account is maintained in Indian Currency.
The Interest earned on the deposits of an NRO account is subject to TDS (Tax Deducted At Source). Moreover, funds from an NRO account cannot be freely repatriated into any foreign account.
An NRE account is an account held by NRIs primarily to park their foreign earnings in Indian currency. Any currency (dollar, euro, pound) deposited into an NRE account will be converted to the Indian rupee.
The key benefit of an NRE account is that it is exempt from tax. The principal amount as well as the interest earned from the principal amount is both tax-free. Moreover, there are no limits on the repatriation of funds from an NRE account to any foreign account.
NRE accounts are generally used for personal or business purposes. NRE accounts are the preferred choice of accounts for NRIs looking to make direct investments in India. An NRE account is however prone to exchange rate fluctuation risk due to conversion into INR from foreign currency and vice versa.
A foreign currency non-resident account is a type of account that lets NRIs create term deposits in foreign currencies in India. An FCNR account is like a fixed deposit to a resident Indian but only in foreign currency. Since the deposits are made in foreign currencies there is no risk of exchange rate fluctuations.
The Reserve Bank Of India (RBI) has allowed the NRIs to hold FCNR accounts in the following currencies only – US Dollars (USD), Great Britain Pound Sterling (GBP), Euro (EUR), Singapore Dollar (SGD), Hong Kong Dollar (HKD), Australian Dollar (AUD), Canadian Dollar (CAD), and Japanese Yen (JPN).
The key point to note in an FCNR account is that both the principal and the interest earned on the principal amount are tax-free and fully repatriable without any restrictions. Moreover, since an FCNR account is basically a term deposit, the NRIs can earn risk-free fixed returns without exchange rate fluctuations or taxation.
Ashutosh Financial Services is a professional financial company that has been assisting the NRIs in their various banking and financial requirements for over 20 years now. Through our years of experience, we have created a custom process through which we can satisfy the needs of the NRIs in the best way possible.
When it comes to NRI Banking requirements it is critical to understand and know the objective of the NRI before opening any bank account. We have a thorough discussion with the NRIs to determine their goals and objectives before suggesting them any NRI bank accounts. Once the goals are outlined we suggest an NRI the type of account that best suits their needs as well as satisfies all their requirements.
We also suggest the banks that an NRI should prefer for opening an NRI account. We also help the NRIs by informing them of the various documents and proofs that they will need to open an NRI bank account. Moreover, we also take regular follow-ups with the bank executives to ensure that the NRI bank account is opened at the earliest. We also assist and guide the NRIs in case of any problem arising in the process of NRI bank account opening.
We also inform the NRIs about all the taxation and compliance matters relating to the NRI accounts opened by them. We are an end-to-end one-stop NRI service provider. We provide all kinds of services from NRI banking, Investments, Insurance, Estate Planning, Income Tax Compliance, and Foreign Tax Compliance. We are a professionally managed and ISO-certified company with a qualified and professional team.
We are an ISO 9001:2015 certified company
