NRI Account: NRI bank accounts are a perfect solution for non-resident Indians to manage their finances and expenses. Creating an NRI savings account in India allows you to meet your family’s financial needs in India by investing in Indian markets. Savings accounts are of two types.
Nowadays it has become very common to go abroad and settle down. However, NRIs prefer to open bank accounts to help their family members who wish to return home. NRI bank accounts are a perfect solution for non-resident Indians to manage their finances and expenses. Creating an NRI savings account in India allows you to meet your family’s financial needs in India by investing in Indian markets. Savings accounts are of two types. Classified as Non-Resident Ordinary (NRO) and Non-Resident External (NRE) accounts. An NRO account holds tax-free domestic income from real estate sales, rent, residential rental investments, etc. But an NRE account includes your international income earned outside India. In this background let us know more details about NRI accounts.
Documents required to create an NRI account
- Copy of current passport.
- Copy of Permanent Account Number (PAN) or Form-60 should be submitted in case PAN is not available.
- Copy of current work permit, visa or overseas resident card.
- The address for the document must match the address provided in the application.
- Along with the required documentation to create an NRI account you need to send a picture from your personal account, initial payment cheque/draft in addition.
- Documents from authorized representatives of Scheduled Commercial Banks with Indian registration are required for overseas branches.
- Indian Embassy/Consulate General in the country where the non-resident client resides.
NRI Account Benefits
- NRI accounts are opened jointly with Resident Indian. But only on an ex- or survivor basis.
- Currency in NRE and NRO accounts is in Indian Rupees.
- Both the principal amount and the interest earned in NRE accounts can be fully repatriated.
- Money can be transferred from NRO account to NRE account after paying applicable taxes.
- Interest earned on NRE accounts is not taxed in India.
- To open an NRI account you need to complete the KYC procedure. Certain documents like NRI account opening form must be kept ready. These may vary from bank to bank. But you can get pdf regarding NRI account opening form on official bank websites.
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