Banking Options for Non Resident Indians: Foreign Bank Accounts

Are you an NRI and are confused about banking in India? Do you want to send money to India, but don’t know how or where to get the best exchange rate? or do you need to get some money from India and are looking for the best mode of transfer to your foreign account? You’ve come to the right place. We will try to cover all the topics related to NRI banking and all the options you have in this article.

Who is an NRI?

The terms “Non-Resident Indian” and “PIO” refer to an individual who has migrated from India for work, business, or any other purpose. They are also known as NRIs; these people possess Indian citizenship but live outside of its borders in another country with temporarily visiting privileges that allow them temporary residence status there until they leave permanently or die.,

The term PIO stands not just for ‘Persons Of Indian Origin but more specifically describes someone descended either remotely (grandparents) or directly through ancestors having been born abroad before assuming permanent residency here.

As an NRI do I need to file taxes in India?

As per the Income Tax Act of 1961, an NRI is a person who has been staying outside of India for at least 182 days in the financial year, or 365 days spread over four consecutive financial years and at least 60 days in the relevant financial year. An NRI is thus not liable to pay taxes in India. However, they are still required to file their income tax returns if they have taxable incomes in India.

What is the type of bank accounts an NRI can maintain and operate in India?

An NRI can have the following types of bank accounts in India:

-NRE account

-NRO account

-Foreign currency non-resident (FCNR) account.

We will discuss these three types of bank accounts in detail below.

The NRE or the Non-Resident External Rupee Account is a savings or current account that can be opened by an NRI with an authorized dealer in foreign currency. The funds deposited into this account are not subject to any restrictions under the Foreign Exchange Management Act and can be freely repatriated outside of India. This type of bank account is best suited for NRIs who want to park their foreign earnings in India and earn interest on them.

The NRO or the Non-Resident Ordinary Rupees Account is a savings or current account that can be opened by an NRI with an authorized dealer in Indian currency. The funds deposited into this account are subject to the Foreign Exchange Management Act and can only be repatriated outside of India with certain restrictions. This type of bank account is best suited for NRIs who want to park their foreign earnings in India but do not need immediate access to them. You must open an NRO account if you need to manage any income earned in India.

The FCNR or the Foreign Currency Non-Resident Account is a term deposit account that can be opened by an NRI with an authorized dealer in foreign currency. The funds deposited into this account are not subject to any restrictions under the Foreign Exchange Management Act and can be freely repatriated outside of India. This type of bank account is best suited for NRIs who want to earn higher interest rates on their foreign earnings.

What bank(s) should I open an NRI account with?

Some of the banks where you can open an NRI bank account with any of the following banks in India:

-State Bank of India

-HDFC Bank

-ICICI Bank

-Axis Bank

-Kotak Mahindra Bank

Each of these banks has a different set of requirements and charges for opening and maintaining an NRI bank account. You should compare the different options and choose the one that best suits your needs.

If you have any specific questions regarding any of the above account(s), please send us an email at sosglobalindians@gmail.com or post your questions in the comments here or please feel free to use the following forum link to go and discuss.

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