Most people today take the first opportunity they can get to move to a foreign land. Some make the most of business opportunities while others choose to migrate on their own accord. Such people, who migrate abroad from India, are regarded as Non-Resident Indians or NRIs. The banking needs of NRIs are typically different from regular citizens in India. They need to open NRI banking accounts to manage their funds in India and abroad. Here are 5 banking facts to keep in mind if you’re assuming NRI status.
- You need to convert your Indian bank accounts into NRI account
In order to be eligible for NRI banking services and to access their INR accounts from abroad, NRIs first need to convert their Indian bank accounts to NRI bank accounts. You can do the same by visiting your bank before you leave for abroad or even after you have moved abroad. The later can be done by submitting an online application to your bank, informing them of your current residency status. The bank will help you convert your regular account to the type of NRI account you need.
- You can choose between two basic types of accounts
NRIs can choose between two basic types of accounts – the Non Resident Ordinary Rupee or NRO account and the Non Resident External Rupee or NRE account. The former type of account is a rupee account, through which you can continue to manage your investments and expenses in India (and money earned in INR). The NRE account, on the other hand, is especially designed for people who wish to park their foreign currency earning in Indian banks and benefit from currency conversion.
- You can also open special foreign currency fixed deposits
One of the most prominent NRI services provided by banks is that you can create special foreign currency fixed deposits. Also known as Foreign Currency Non-resident and Foreign Currency Non-repatriable, FCNR deposits can be created for 5 years tenures and you can earn great interest on the savings parked. Moreover, you do not have to worry about currency rate fluctuations, which make these FDs an ideal form of investment for NRIs.
- You can enjoy a wide range of facilities and services with your NRI account
NRIs holding bank accounts in India can enjoy a wide range of services too. For instance, you become eligible for NRI online banking services. You can also transfer funds between different NRI accounts very easily. Moreover, you can avail loans and overdraft facilities against the savings parked in your account. Some banks also provide depository services through which you, you can use your NRI account to invest in the investment market in India.
- You can convert the account to a regular account when you return to India
If you decide to return to India at a later date, you can convert your NRI banking account to a regular account, just as easily. While a few banks may require you to complete this formality in person, a few provide NRI net banking services to do so. You can also continue to maintain your NRI FDs to term, even if you’ve returned to India.
Final word: Banking services for NRIs make it rather easy for people from this group to manage their funds in India. From NRI internet banking to easy fund transfers and even opening the account online, everything is possible. However, the process of documentation differs and NRIs need to provide several additional documents to open the accounts.