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Being a Non-Resident Indian (NRI) means managing overseas earnings, handling Indian investments, and navigating international money transfers. To keep your finances in order and comply with Indian regulations, you need an NRI account.

The Foreign Exchange Management Act (FEMA) guidelines do not allow NRIs to operate a regular savings or current account. Once you attain NRI status, you must convert your existing account into an NRI account. If you fail to do so, you may incur hefty penalties. An NRI account helps in handlining remittances, investments, and financial transactions legally.

Ready to open an NRI account? Here’s a detailed step-by-step guide.

Types of NRI accounts

Banks in India primarily offer the following types of NRI accounts:

Non-Resident External (NRE) account

  • Rupee-denominated account
  • Used to deposit funds earned from foreign sources
  • Fully repatriable (funds can be freely transferred abroad without restriction)
  • Interest earned is non-taxable in India

Non-Resident Ordinary (NRO) account

  • Held in Indian rupees
  • Used for income earned in India (rent, dividends, interest, pension, etc.)
  • Foreign income or funds can also be deposited
  • Repatriation is allowed, but the limit is USD 1 million per financial year
  • Any interest you earn getstaxed in India

Foreign Currency Non-Resident (FCNR) account

  • Fixed deposit account held in foreign currency
  • Repatriable without restriction
  • Interest earned is not taxed in India

Special Non-Resident Rupee (SNRR) account

  • Non-interest-bearing current account
  • For NRIs having a business interest in India
  • Repatriable
  • The tenure shall be concurrent to the tenure of the contract/period of operation/business of the account holder (you).

Step-by-step process for opening an NRI account

Here is how to open an NRI account online:

Choose the right bank  

  • High interest rates on the account balances
  • Digital banking services
  • Access to investment opportunities
  • Seamless remittance services
  • Premium financial and lifestyle privileges

Once you have finalised the bank, visit their website, go to the NRI section, and fill out the relevant application form. The bank may call you to guide you through the NRI online account opening process, discuss the required documents, and explain the KYC procedure.

Gather the required documents

  • Passport: Photocopy of passport pages showing your name, date of birth, signature, and other personal details
  • Proof of NRI status: Visa, passport, or residence permit
  • Overseas address proof: Utility bill, rental agreement, or overseas bank statement
  • Indian address proof (if applicable): Aadhaar card, driving licence, or voter ID
  • PAN card or Form 60: Mandatory for tax-related transactions

Completethe KYC requirements

Once the bank receives your application, they conduct a Know Your

  • The Indian embassy or consulate
  • Notary public in the foreign country
  • An overseas branch of an Indian bank
  • Foreign banks with a presence in India

Now, upload the scanned copies of these documents and wait for the bank to verify them. Verification timelines vary, but private banking services expedite the process.

Fund your account and start banking

Once your documents and information are verified, your account will be opened. You will receive your account number, debit card, credit card, internet banking credentials, and chequebook. You can now fund the NRI account and use it for remittances, savings, investments, and transactions in India.

Key takeaways

With digital banking options, the entire NRI account opening process can be completed instantly from any location.Once activated, you can use your NRI account to earn interest, manage Indian income, make investments, repatriate earnings, and much more.

Open your NRI account today!