What is an NRE account?
An NRE account is a kind of NRI account which stands for – Non Resident External Rupee Account. It is a savings or a current account held by a Non Resident Indian or an Indian Overseas Citizen, in an Indian bank. It conveniently allows the holder to deposit their foreign earnings in an Indian bank for investments in India, with no restrictions on transferring the money back to their foreign account. Moreover, money deposited in foreign currency is always converted to Indian currency while it exists in the NRE Account.
Methods of Transfers
There are several ways you can choose to deposit money into your NRE accounts. Some commonly followed methods include:-
1) Wire transfer – transfer of funds from your overseas bank account to your Indian bank account. All you have to do is fill in an application form requesting a transfer of money and your beneficiary account will be credited in 24 hours.
2) Transfer agencies – Western Union Money transfer and other such agencies assist you with your requirements to transfer money to another entity or account. However, these may charge particular service costs.
3) Remittance – Some bank have established a secure application to transfer your funds. You need to register on the mobile application and follow the guidelines for the transfer. It provides perpetual servicing along with tracking information to keep a check on your funds. Similarly, HDFC bank has come up with remit2India, while Kotak has click2remit whereas SBI has SBI Express.
4) Direct Deposit – you can directly deposit funds to your account by visiting the bank or sending it via somebody. It can be deposited in foreign currency which can be converted to Indian currency.
5) Traveler’s cheque – During your travels in India you can deposit a traveler’s cheque and administer the additional funds in your NRE account.
While secure and efficient methods are prevalent, transfer and allocation of funds can come across certain unfortunate hurdles. Scams are a common issue that have victimized many NRIs. The benefits that these kinds of NRI bank accounts have in store are generally helpful for non-resident Indians. Adhering to guidelines established by our banks providing these accounts, is essential for all account holders. Negligence and carelessness can end up costing you a lot, whereas simply keeping a check can reap you lasting benefits.