A Bank Account is essential to store all the savings and assets of customers living worldwide, helpful during an emergency or urgent payment of funds. You rely on banks for keeping assets safely and offering them interest on the account. Withdraw and transfer funds quickly, check the account balance, pay bills, and access other banking services.

You can open an NRI Account with a bank in India if you are a Non-Resident Indian or Person of Indian Origin. The purpose of the account is to save or invest the income you earn abroad or in India. These accounts follow the Reserve Bank of India’s FEMA and Income Tax Act of India guidelines.

Who should open them?

Individuals residing outside India for at least 120 days in a year and who spent less than 365 days in India in four previous years can open an NRI Savings Account. You should be an Indian citizen outside India for studies, employment, an official deputed overseas by the Indian government, or a Person of Indian Origin or Overseas Citizen of India.

Advantages

A Non-Resident Ordinary and Non-Resident External Account helps manage the income earned in India. The income can be in interest, dividend, rent, etc. An NRO Account facilitates you to transfer money abroad. In this account, you can deposit money in Indian or foreign currency. Consider some other advantages:

Investments in India

An NRI Savings Bank Account facilitates investments in India. You can invest in India, purchase and sell Stocks, Mutual Funds, and other assets to diversify your investment portfolio.

Taxation

Opening an NRE or FCNR Account allows investors to earn additional income in the form of interest, which is entirely tax-free. Hence income from NRE Account, NRE Fixed Deposits, and FCNR Deposits are exempt from tax. Interest from Non-Resident Ordinary Accounts is taxable. But NRIs can avail of tax benefits under the Double Taxation Avoidance Agreement (DTAA) in certain countries.

Repatriation

Income from Indian investments made from NRE and Foreign Currency Non-Resident Accounts are fully repatriable. You can repatriate both principal and interest earnings from them. In the case of Non-Resident Ordinary Accounts, there is a repatriation limit of USD 1 million in a financial year.

Low minimum balance

Most banks have reduced the minimum balance requirement to as low as INR 10,000. When you open an NRI Savings Account, you do not need to worry about maintaining a high minimum balance.

Deposits in multiple currencies

As an NRI, you retain your deposits in the currency of your resident country through FCNR Deposits. Hence the risk of exchange rates reduce when you open an NRI Savings Account online.

Convenience

You can open an NRI Bank Account without physically visiting the branch. Operate it from any country in the world with the help of internet banking or Debit Cards.

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