Managing finances as an NRI involves specific banking needs, and the Reserve Bank of India (RBI) offers tailored account options to meet them. Here’s an overview of the key NRI bank accounts and their specific purposes:
1. NRE Account (Non-Resident External):
- For remitting foreign earnings to India.
- Fully repatriable, tax-free interest.
- Deposits in foreign currency converted to rupees for managing Indian expenses.
2. NRO Account (Non-Resident Ordinary):
- For managing Indian income (rent, pension, etc.).
- Interest is taxable in India.
- Ideal for daily expenses and payments within India.
3. FCNR Account (Foreign Currency Non-Resident):
- Protects against currency risks, deposits held in foreign currency (USD, GBP, etc.).
- Fixed deposits with fully repatriable funds.
- Tax-free interest in India.
Key Points:
- Requires proof of NRI status, passport, visa, and address proof.
- NRE/NRO accounts can be held jointly with NRIs or residents. FCNR accounts are usually joint with NRIs.
Choose the account that best suits your financial needs across borders.