The NRI banking system has been designed to offer the best of banking facilities for those Indians who have been residing abroad, under the status of an NRI. Since most of these individuals earn in the foreign currency, the NRI services allow these individuals to invest their earnings and utilise them for both their foreign financial needs as well as their residential needs.
Some of the benefits of this service include:
Convenience: Most of the NRI accounts provide access to the banking system, depending on the financial needs of the NRI. Through these services, you can make a quick transfer of funds, or even make an exchange of currencies through a quick channel.
Time-Saving: NRI services gives easy access to your funds, whether physically or online. You don’t need to run to your local foreign bank or call a friend for a favour to access funds.
Diversification: For those are concerned about financial risks and the volatile conditions of the market, such as in Europe and America, this is one solution to diversify your investments and savings.
Interest: The NRI banking services allow you to compare the different interest rates of the different investment options. This will help you get the best of the interest rates and earning potential between your local country and the one you are residing in.
Currency Hedge: The currency hedge provides an advantage of minimising the currency risks, mainly the fluctuating rates. In the event, your savings are invested in the rupee, while the rest in dollars, then you will be effectively hedging yourself against any fall in the dollar value. This will also work against the value of the dollar if it goes up.
Keeping these factors in mind, you can now open your NRI bank account to invest your earnings and get the best out of your earnings. To open your NRI account, you need to:
Step 1 — Know your status: There is a considerable difference between holding a status of an NRI and holding a status of a PIO. As this factor is an important pre — requisite for most account applications, it is crucial that you have the necessary documents to qualify for it.
Step 2 — Select your choice of the bank: You can choose the bank that will offer you the financial services that you require. To know more about the bank services available, you can always check out the bank details on their website. However, ensure that the bank is authorised by the Reserve Bank of India.
Step 3 — Account type: Most of the banks offer information about the different types of bank accounts available, and what type of bank account you will need to opt for based on your financial requirement and situation. Once you are aware of the requirements, you can now easily begin the application process for your bank account.