Have you just become a Non Resident Indian? This is for sure one of the most important and crucial problem that you might be facing now is with regards to a bank account in India. Are you aware of the various NRI services available to an NRI and the kind of bank accounts you can maintain in India? There are mainly three kinds of NRI bank accounts one can maintain they are 1. NRO 2. NRE 3. FCNR
Let us know about these NRI banking accounts a little more deeply.
i. Ordinary non-resident rupee account– These are primarily rupee governed NRI bank accounts that are non repatriable and these can either be in the form of savings, recurring, fixed deposits or current accounts. All of these accounts can be jointly opened with Indian residents. When a resident of India takes up a job abroad, his bank account automatically gets labelled as an NRO account. Now all the deposits made into this accounts can be used for all authentic payments in the Indian currency.This is one NRI service that should be availed of.
ii. Non resident external rupee accounts – Non resident Indians (NRI’s), Persons of Indian Origin (PIO’s), overseas corporate bodies (OCB’s) all are worthy of opening NRE accounts. These NRI bank accounts again are primarily rupee governed accounts and these can either be in the form of savings, recurring, fixed deposits or current accounts. These accounts can be opened by money paid in support of funds in free foreign exchange. So any foreign exchange that is accounted legally for or any repatriable income of the account holder can be deposited in the account. What’s more, you can jointly operate these NRI bank accounts with other NRIs and PIOs and a power of attorney too can be given to other Indians so that they can conveniently operate the accounts. When talking about NRI banking this is one such bank account which is more than useful.
iii. Foreign currency accounts – This is another NRI services in
India available to non-resident Indians (NRI’s), Persons of Indian Origin (PIO’s) and overseas corporate bodies (OCB’s). They are allowed to open such bank accounts in US, Australian and Canadian Dollars, Pounds, Yen and Euros. However something worth noting with regards to this is that such NRI bank accounts are to be opened only for term deposits that would amount to the following time periods –
1. one year or more however less than two years,
2. two years or more however less than three years,
3. three years or more however less than four years and
4. 4 years or more however less than five years or
5. just complete five years.
iv. Non resident rupee deposit accounts (NRNR accounts) – Non-resident Indians (NRI’s), Persons of Indian Origin (PIO’s), overseas corporate bodies (OCB’s) are allowed to open such bank accounts by transfer of freely convertible origin currency funds from abroad or NRE or FCNR accounts. Non resident accounts can open such accounts in conjunction with other non residents except Pakistani and Bangladeshi people. What’s more the deposits to such accounts can be held jointly with a resident. The time frame for such deposits range from6 months to 3 years and then it can be renewed again.