NRI Bank Accounts in India

A non-resident Indian can open 3 types of bank accounts in India which are authorised by RBI and the money in the account can be in the form of Indian Rupees or foreign currency.

Types:

1. Non Resident (External) Rupee Account [NRE Account]
2. Non Resident (Ordinary) Rupee Account [NRO Account]
3. Foreign Currency (Non Resident) Account [FCNR Account]

NRO Account:

It is maintained in Indian Rupees. NRI can open NRO accounts in the form of savings accounts, current or fixed deposits or recurring deposits accounts. You are not allowed to transfer the amount to NRE account from this account as any transfer from this account needs permission of RBI. This account can be used only for payments in Indian rupees and the account can be converted to a regular Indian resident’s account.

NRE Account:

It is a rupee account maintained with the bank. Money can be freely transferred from this account to any other account even to NRO accounts without any restriction. NRI gets the tax exemption on the interest earned from this account. To deposit foreign exchange, the bank first converts it to Indian currency and for withdrawal, foreign currency is allowed.

The Indian rupees are converted to the foreign exchange in the account at the selling rates and the conversion losses shall be borne by the account holder. The NRIs can convert this account into a regular resident account after returning to India and becoming an Indian citizen.

FCNR Account:

You can open FCNR accounts only in the form of term deposits with maturity ranging up to 5 years. You can maintain this account in any convertible currency which is available but in this account money cannot be deposited in an Indian Currency account. The account balances i.e. the principal and interest can be transferred outside India in the same currency. The entire deposit amount, principal and interest, is exempted from tax.

Account Opening Procedure Specifically in SBI:

NRE/NRO Account can be opened in the following manner:

1. Click https://oaa.onlinesbi.sbi/oaonri/onlineaccapp.htm to fill the application online and send it to the global NRI centre in India.
2. You must go to the SBI Foreign Office or the exchange house we work with: Please go here to download the account opening application, fill it out by hand, and deliver it to a location near you.
3. Representative of the designated office also offers instant NRI account facility i.e. NRE/NRO bank account number will be provided to the customer on submission of application.
4. Download account opening application and send it to the preferred home branch in India along with attested proofs and KYC requisite documents.

Lead India has expert lawyers who can answer your free legal query. You just need to contact our lawyers and all your queries will be resolved regarding any issues with foreign bank accounts.