The NRIs Guide to Bank Accounts in India
IndusInd Bank offers the Indus Exclusive savings account, specially designed for NRIs. The bank account provides you with top-of-the-line benefits along with a seamless banking experience.
Have you recently been granted NRI status? If yes, the first step you must take is to find the ideal bank account to manage your finances. Unlike resident Indian citizens, NRIs cannot have standard savings accounts in Indian banks. That’s because the banking requirements are different for a Non-Resident Indian (NRI) or a Person of Indian Origin (PIO), as they reside overseas and most of their income is in foreign currencies.
Keeping in mind the savings and investment needs of NRIs, specific bank accounts are available in India. These bank accounts provide advantages that include repatriation and investment benefits for the account holders.
For instance, IndusInd Bank offers the Indus Exclusive savings account, specially designed for NRIs. The bank account provides you with top-of-the-line benefits along with a seamless banking experience.
Types of NRI Bank Accounts in India
There are 3 major types of bank accounts for NRIs available in India:
#1 Non-Resident Ordinary Account
A Non-Resident Ordinary rupee account or NRO account is a bank account for NRIs that can be funded in rupees. The NRO account allows you to manage the income that you earned during your employment in India. This rupee denominated bank account can be opened as a savings account, current account, fixed or recurring deposit.
Moreover, when you move abroad, your resident bank accounts become dormant over a period of time. However, you have the option to convert them into NRO accounts to continue using them.
#2 Non-Resident (External) Account
Next, the Non-Resident (External) account is an excellent medium to park your foreign earnings. This means you can transfer the foreign currency that you earned overseas to a bank account in India. However, you must note that NRE accounts are prone to exchange rate fluctuations. Therefore, there’s a possibility that the money that is withdrawn is less or more than the initial deposit.
Furthermore, NRE accounts are also applicable for tax exemption, which means the principal and interest amount are tax-free and can be repatriated to India without restrictions.
#3 Foreign Currency (Non-Resident) Account
A Foreign Currency (Non-Resident) account is essentially a fixed deposit that allows you to deposit any foreign currency for 1 to 5 years. The interest income you earn is not taxable, and the funds are entirely repatriable or transferrable on maturity.
If you are looking for a savings tool to save money in foreign denominations, an FCNR account is an excellent choice. You can earn high risk-free returns on your investment through this fixed-term deposit.
IndusInd Bank’s Indus Exclusive Savings Account for NRIs provides you with tailor-made benefits, including a Relationship Manager to take your banking experience to a whole new level. You can also enjoy perks, such as free ATM cash withdrawals, doorstep banking and mobile banking. So, be a global citizen while staying connected to your roots with IndusInd Bank!
To Sum Up
Managing finances as an NRI is easier than ever. With different types of NRI bank accounts available in the market, you can say goodbye to your financial woes. Choose a credible financial institution and enjoy new age banking privileges from anywhere in the world.
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