Indian Bank Accounts For an NRI

Different accounts that NRI can hold in India are:

1) Non-Resident External (NRE)
2) Non-Resident Ordinary (NRO)
3) Foreign Currency Non-Resident (FCNR)

Non-Resident External savings account

NRE savings account offers number of advantages. There is no need of knowing who you are, whether you are a professional, employee, an entrepreneur or a student.
Some advantages are listed below:

• You will get higher interest rates on your amount.
• This interest will be free of tax in India.
• It allows your family members to access your account anytime, anywhere in India.
• Allows any currency to credit.
• You have rights to take your money back, anytime you wish.
• Minimum allowed balance is Rs 10,000. Some banks allow opening zero balance account also.

Non-Resident Ordinary savings account

If you (NRI) earn the money in India through dividends, rents, pension and so on, then NRO saving account is the best option for NRI. NRE savings account doesn’t allow depositing money, so NRO savings account is best option for NRI to deposit and manage the local currency.

Some advantages are listed below:

• You will get higher interest rates on your amount.
• Deposit your money earned in India into account.
• You have rights to take your money back, anytime you wish.
• Allows any currency to credit.
• It allows your family members to access your account anytime, anywhere in India.

Foreign Currency Non-Resident account

These deposits can be maintained in five designated currencies i.e. USD, GBP, AUD and CAD. These are for minimum one year to max five years.

• Principal amount along with interest freely repairable in your choice- currency
• Exchange is not allowed as there is risk due to deposit is in foreign currency
• NRI depositors may use the loans or overdrafts in rupees against the security of these deposits. However, loans in foreign currency against FCNR deposits in India can be used outside the India.
• These are free from Wealth Tax and Income Tax
• Gifts given to close relatives are free from gift tax