Nri Accounts For Money Transfer

By Author: Vijay K Shetty
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Non resident Indian needs to open up few basic bank accounts for their essential financial transaction back at home. Be it to transfer profits earned on mutual funds and share or transfer rental income abroad. Your rental income earned in India can be easily transferred abroad.

Approach a bank which has the license to deal with the NRI. These banks will help you transfer money to a foreign country. You may have been on a project, business, have been posted abroad on some official work and would like to continue financial transaction back at home. For all these you need an NRI bank account.

NRI accounts such as Non Resident Ordinary (NRO), Non Resident External (NRE) and Foreign Currency Non resident (FCNR) are three basic accounts. This allows your parents or your spouse to access your account and withdraw funds back in India. Thus, you can provide them financial succour back at home. The best and secured mode of remittance is to have remittances through your own bank.

NRO: Non resident Ordinary account allows you to save your rental income, interest earned on fixed deposits, profits on mutual fund, shares ...
... and debentures. However, you cannot take the income earned in India abroad.

NRE: Non Resident External is held on a repatriable basis. It means that you can transfer money earned in India abroad. This offers better interest rate on your savings account.

FCNR: Foreign Currency Non resident is also on a repatriable basis. Incase you want to open up a term deposit such as a Certificate of deposit, you must have an FCNR bank account for this. FCNR also offers higher interest rate on loans.

This way, Indian Government pumps back NRI income back to India. These accounts offer them zero tax liability on the income earned in India. Profits earned on national savings certificate, pension plans and insurance are not taxable income. However, the money transfer agents who offer remittances in your home town will charge a minimum fee. They offer you better rates on foreign currency conversion as well.

Vijay K Shetty, Platinum Author.
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