A Complete Guide To Nri Account – A Detailed Faq

By Author: Rishank Rautela
Total Articles: 2
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We all have that one member in our family who has gone abroad to build a better life. Any Indian citizen, who has settled abroad or gone for employment and staying outside, would be considered Non-Resident Indians (NRIs). Though NRI’s stay abroad, they prefer managing their bank accounts they held in India. Banks provide special features and offer for the NRI account in India.

What is an NRI account?

NRI account is an account opened by an NRI with Indian citizenship. Since your income or savings will be in foreign currency, you need an account in India that would convert the foreign currency to Indian Rupees.

What are the different types of NRI Accounts? 

NRI account in India is of three kinds – each that caters to your financial requirements.

Non-resident External (NRE) Account
Non-resident Ordinary (NRO) Account
Foreign Currency Non-Resident (FCNR) Account

How does an NRE account work?

An NRE account allows you to transfer your foreign savings ...
... quickly to India. You need to open an NRE account in India and deposit your foreign currency from abroad. NRE account is a Rupee dominated one. You can enjoy the NRE account, like any other banking services provided in India.

What is the difference between an NRO account and an NRE account?

An NRE account is an external savings bank account opened abroad by a non-resident. Under this account, the NRI can only deposit his foreign currency. It gets converted to the Indian rupee and can be managed in India. You cannot make an Indian money deposit to an NRE account.

Meanwhile, an NRO account is an ordinary bank account opened by a non-resident abroad. Under this account, you can deposit Indian money and manage the services like any other savings bank account.

What is the interest rate for the NRI account in India?

Each bank has its specified interest rates, but generally, the price varies from bank to bank. You can have proper research on which bank provides the high-interest rates for NRI account.

How to open an NRI account?

To open an NRI account, follow these simple and easy steps and voila! You are done.

Visit your nearest branch if you are in India. If you are abroad, provide the contact details to your bank to assist you with account opening.
You can either open NRE or NRO account, depending on your financial needs.
Submit the required documents to open the NRI account.
Make an initial payment cheque from your account that equals to the amount required to maintain Average Monthly Balance in the account.

What is the documentation for opening an NRE/NRO account?

A copy of the valid passport that includes pages showing your name, address, date of birth, place, date of issue, and expiry date. Photograph, signature, and observation page.
A document confirming the address overseas or the Indian address. Make sure the address on the document should match the address mentioned in the application form.
Proof of NRI status. Either a valid employment/residence visa copy or work permit would do.
Proof of overseas and Indian address
Copy of Indian PAN card or Form 60
Recent passport size photo