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Converting A Savings Account To Nro Account: Why And How-to Guide For Nris

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By Author: Samantha Kennedy
Total Articles: 3
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An increasing number of Indians now move to foreign countries due to the availability of better professional opportunities. But many of the people moving abroad still have income sources like rent from property, dividends, and returns from other types of investments in India. While you always have the option to open a new NRO account, you can also convert your existing resident savings account into NRO account.

Let us first have a quick look at what an NRO account is and what are its benefits before talking about the steps for converting your account.

What is an NRO Account, and What Are Its Benefits?

An NRO or Non-Resident Ordinary account is a type of bank account which allows NRIs to deposit their Indian income in INR. This can be in the form of savings, current, or fixed deposit account. Just like a standard bank account, an NRO account also earns interest. Moreover, after the tax deduction, NRIs can also repatriate the interest income to a foreign country.

Even the principal or deposited amount can be repatriated as per the limits set forth by the government. So, if you have a resident savings account, rather than closing it and opening a new NRO account before moving abroad, account conversion can be an excellent option for depositing your Indian income in a safe and hassle-free manner.

How to Convert a Savings Account into NRO Account?

Follow these steps for converting your resident savings account to NRO account-
● Get in touch with the bank where you hold your savings account and request for account conversion.
● You will be required to fill an account conversion form and submit documents such as ID proof, address proof, NRI status proof, foreign address proof, etc.
● Once received, the bank will verify your documents and rename your savings account as NRO account if everything is in order. In most cases, your account number will remain the same.

If you are already in a foreign country, there are now banks that allow you to convert and open NRO account online. However, you will mostly be required to get the conversion form and your documents attested by the Indian embassy before uploading them online.

Also, in such cases, you will be allowed to make the initial account deposit in a foreign currency. The foreign currency will be converted into INR as per the current exchange rate.

Are There Any Charges for Savings to NRO Account Conversion?
This depends on the bank in which you have the account. You can get in touch with your bank or check their official website to know more. Also, many of the banks now offer a zero-balance savings account. If you have one such account, you will first have to convert it into a minimum average balance account before initiating the NRO conversion.

If you are moving abroad but have income sources in India, an NRO account can be a great option for you. You can either open a new NRO account or follow the steps mentioned above to convert your resident savings account into the NRO account.

Disclaimer: “The contents of this article is meant merely for informational purpose. Any reliance placed on such information is therefore strictly at one’s own risk.”

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