Financial Checklist for Returning NRIs: Before and After the Move (2026)

A few years ago, a member in our WhatsApp group – a senior engineer moving back from Seattle – told me something that stuck.

“Mani, I spent three months researching the best school for my daughter. I spent three hours on my bank accounts. Guess which one caused problems?”

His NRE account got frozen. He missed the RNOR window for a large mutual fund redemption. And he paid about Rs 4 lakh more in taxes than he needed to.

All because he didn’t have a financial checklist.

I’ve seen this pattern repeat hundreds of times since 2017. Smart, successful professionals who plan every detail of their careers but treat the financial transition as an afterthought.

Your move back is not just a change of address. It’s a complete financial restructuring. Your tax status changes. Your banking rules change. Your investment options change. Even the way you send money changes.

This checklist covers everything – from 12 months before your move to 12 months after landing. Print it. Bookmark it. Share it with your spouse.

Let’s go through it.

Part 1: Before the Move (12 to 3 Months Out)

1. Hire a Cross-Border Tax Advisor

This is the single most important financial decision you’ll make. Not optional. Not “nice to have.” Essential.

You need someone who understands both your country’s tax system (US, UK, UAE, Canada, etc.) and Indian taxation.

Not a general CA. Not your cousin who does ITRs. A specialist.

Why? Because mistakes in the transition year can cost you lakhs. The DTAA (Double Taxation Avoidance Agreement) between India and your country determines how your income gets taxed. Get this wrong and you’ll pay tax twice on the same money.

A good cross-border tax advisor will help you time your return to maximize your RNOR window (more on this below), plan asset sales, and structure your repatriation.

2. Understand Your RNOR Window

RNOR – Resident but Not Ordinarily Resident – is your golden transition period.

For 2-3 years after becoming a resident in India, your foreign income (earned and received outside India) is not taxable in India. This includes rental income from overseas property, dividends from foreign stocks, interest from foreign bank accounts, and capital gains from selling foreign assets.

How you qualify: You need to have been an NRI for at least 9 of the past 10 financial years. If you’ve lived abroad for 10+ years, you almost certainly qualify.

Why timing matters:

If you return in December 2025, you’ll be in India for about 100 days in FY 2025-26. Since that’s less than 182 days, you remain NRI for that year. RNOR starts from FY 2026-27.

But if you return in April 2025, you get RNOR for FY 2025-26, FY 2026-27, and potentially FY 2027-28 – a full 3 years.

Simply choosing the right month to return can give you an entire extra year of tax-free foreign income. On a foreign income of Rs 25 lakh per year, that’s Rs 7-8 lakh saved in taxes.

Action item: Calculate your optimal return date with your tax advisor. This single decision is worth more than most other optimizations combined.

3. Open an NRE Account (If You Don’t Have One)

If you don’t already have an NRI account in India, open one now.

NRE (Non-Resident External) accounts are tax-free in India and fully repatriable. Once you become a resident, you can no longer deposit into an NRE account. So the window to move money tax-free is before you return.

Transfer your savings to NRE while you’re still an NRI. The interest earned is tax-free.

If you have significant savings to transfer, see our guide on sending large amounts to India and compare services using our Wise alternatives guide to get the best exchange rates.

Pro tip: Don’t convert everything to INR at once. Spread large transfers over a few months to average out exchange rate fluctuations.

4. Take Stock of ALL Your Assets

Create a master spreadsheet listing every financial account and asset you have. Both countries.

Foreign assets to list:

• Bank accounts (savings, checking)
• Retirement accounts (401k, IRA, pension, superannuation)
• Brokerage/investment accounts
• Real estate
• Insurance policies (life, health)
• Cryptocurrency holdings
• Stock options or RSUs from your employer

Indian assets to list:

• NRE/NRO/FCNR accounts
• Fixed deposits
• Mutual fund folios
• Demat account holdings
• Property
• PPF (if you had one before leaving)
• Insurance policies
• Gold holdings

Why this matters: Once you become ROR (Resident and Ordinarily Resident) after your RNOR period ends, you must declare ALL foreign assets in Schedule FA of your Indian tax return. Non-disclosure attracts penalties of Rs 10 lakh under the Black Money Act.

For US NRIs: You’ll continue to file FBAR for foreign accounts exceeding $10,000 even after leaving the US, if you remain a US taxpayer. Also check your FATCA obligations.

5. Decide What to Do with Foreign Retirement Accounts

This is different for every country.

US NRIs (401k/IRA):

You can leave these in the US. Many financial advisors recommend this. During your RNOR period, withdrawals from US retirement accounts are not taxable in India (if received outside India). After RNOR ends, withdrawals become taxable in India at your slab rate, but you can claim DTAA credit for US taxes paid.

Do NOT withdraw everything at once – you’ll trigger a massive tax bill.

UK NRIs (Workplace/State Pension):

State Pension can be claimed from India (but is frozen – won’t increase with inflation). Defined contribution pensions can be left in the UK or transferred to a QROPS. Defined benefit pensions (NHS, etc.) should almost always be left alone.

UAE/Singapore NRIs (End of Service Gratuity/CPF):

No tax in the UAE or Singapore. If you receive these before becoming an Indian resident, they’re not taxable in India either. Time this carefully.

6. Plan Asset Sales During the RNOR Window

If you plan to sell foreign property, redeem overseas investments, or liquidate stock holdings, the RNOR period is ideal.

Capital gains from selling foreign assets during your RNOR window (received outside India) are generally not taxable in India. You’d still pay any applicable tax in the foreign country, but you avoid double taxation.

After RNOR ends, these gains become taxable in India even if you’ve already paid foreign tax. DTAA helps but doesn’t eliminate the burden entirely.

Action item: List all assets you plan to sell in the next 3 years. Work with your tax advisor to create a sale timeline aligned with your RNOR window.

7. Buy Indian Health Insurance – NOW

This is the one item that catches everyone off guard.

Indian health insurance policies have waiting periods for pre-existing conditions – typically 2-4 years. If you have diabetes, hypertension, thyroid issues, or any chronic condition and you buy insurance after landing, you won’t be covered for those conditions for years.

Buy a family floater policy of Rs 50 lakh to Rs 1 crore while you’re still abroad. Most major insurers accept NRI applicants.

By the time you land, your waiting period may already be partially or fully done.

8. Sort Out Your Documents

PAN Card: You need this for everything financial in India. If you don’t have one, apply now. If you have one with an old address, update it after you arrive.

Aadhaar: Apply after you land. You’ll need it for bank KYC, phone connections, tax filing, and dozens of other things.

OCI Card: If you’re a foreign citizen of Indian origin, make sure your OCI is current and linked to your latest passport before you move.

9. Compare Money Transfer Options

You’ll likely be sending money to India in large amounts before and during your move.

Don’t just use your bank’s wire transfer. The exchange rate markup and fees can cost you 1-3% on large transfers. On Rs 1 crore, that’s Rs 1-3 lakh lost.

Compare services. Use Wise, Remitly, OFX, or other alternatives. For very large transfers (above Rs 50 lakh), services like OFX and Xe offer negotiable rates.

Set up rate alerts. Lock in good rates when they come. For the full breakdown, see our money transfer guide.

Also understand purpose codes – every inward remittance to India needs one. Your bank will ask.

10. Review and Restructure Investments

This is where most people procrastinate. Don’t.

Mutual funds: If you’re a US/Canada NRI invested in Indian mutual funds, your fund house likely sent you notices. Many AMCs don’t accept US/Canada NRIs due to FATCA/PFIC issues. Once you become an Indian resident, these restrictions go away. But you need to update your status with the fund house.

Stocks: If you hold Indian stocks through a PIS (Portfolio Investment Scheme) account, you’ll need to close the PIS designation after becoming a resident. Your demat account continues, but the trading rules change – you can now do intraday trading, F&O, and more.

For a complete overview of what’s available, see our best investment options for NRIs guide.

Fixed deposits: NRE FDs will need to be converted. Interest that was tax-free as NRI may become taxable. See our fixed deposits guide for current rates and options.

Part 2: The Month Before Your Move

11. Inform Your Banks (Both Countries)

Foreign banks: Tell them you’re moving. Ask about maintaining a non-resident account. Most US, UK, and Singapore banks allow this. You’ll need a foreign account for receiving pension, rental income, or handling leftover financial matters.

Indian banks (NRE/NRO): Inform them that you’ll be transitioning to resident status soon. Ask what documents they’ll need for account conversion. Get the process started so there are no delays after you land.

12. Download All Financial Records

Before you leave, download and save:

• Last 3 years of bank statements (all accounts, all countries)
• Tax returns (all countries)
• Investment statements
• Insurance policy documents
• Property documents
• Loan agreements
• Retirement account statements

Store these digitally. You’ll need them for Indian tax filing, bank KYC, and potentially for audit purposes.

13. Close or Pause What You Don’t Need

Cancel subscriptions, memberships, and services you won’t use in India. Close credit cards with annual fees (keep one foreign credit card active for online purchases and emergencies).

If you have recurring investments abroad (SIPs, auto-investments), pause or redirect them.

Part 3: After Landing (First 3 Months)

14. Convert NRE/NRO Accounts to Resident Accounts

This is mandatory. And time-sensitive.

Once you become an Indian resident (182+ days in a financial year), you cannot continue operating NRI accounts. RBI regulations require conversion.

NRE Account options:

• Convert to a regular resident savings account (INR)
• Transfer funds to a Resident Foreign Currency (RFC) account (keeps funds in foreign currency)
• Close the account

NRO Account: Must be redesignated as a resident savings account.

FCNR Deposits: Can continue until maturity. After that, transfer to a resident account or RFC account.

RFC Account – the smart choice:

An RFC account lets you park foreign currency earnings without converting to INR immediately. No repatriation limits. Interest is tax-free during your RNOR period. If you ever become NRI again, you can transfer RFC funds back to NRE.

For most returning NRIs, the ideal setup is: convert NRE to RFC (for foreign currency holdings) + keep a regular resident savings account (for daily expenses in INR).

Most banks process conversions within 7-10 working days. Don’t delay – banks can freeze accounts if they find out you’re resident but still operating NRI accounts.

For the full process, see our return financial checklist.

15. Update KYC Everywhere

Once you have your new resident bank account, Aadhaar, and updated PAN, update your KYC with:

• All bank accounts
• Mutual fund houses (each one separately)
• Demat/trading account
• Insurance companies
• PPF account (if you have one)
• NPS account (if applicable)

This is tedious but critical. Your NRI-status KYC will cause transactions to be flagged or blocked.

For mutual funds: Update your status from NRI to Resident with every AMC. This reopens fund houses that previously couldn’t accept you (especially important for US/Canada NRIs). See our mutual fund apps guide for platforms that make this easier.

16. Set Up Your Indian Investment Portfolio

Once you’re a resident, a whole new world of investment options opens up. Things that were restricted or complicated as an NRI become straightforward.

You can now:

• Open a new PPF account (7.1% tax-free returns, 15-year lock-in)
• Start SIPs in any mutual fund without FATCA restrictions
• Invest in Sovereign Gold Bonds when they’re issued
• Open NPS Tier II account (flexible withdrawals)
• Trade intraday and in F&O on stock exchanges
• Buy government bonds directly through RBI
• Invest in IPOs without PIS restrictions

Don’t rush. A community member from Chicago told me he invested Rs 40 lakh across 6 different instruments in his first month back. Within a year, he regretted half of them.

Take 2-3 months to settle in. Understand your cash flow first. Then build a diversified portfolio.

A good starting framework:

Category	Allocation	Options
Emergency fund (6 months)	15-20%	Savings account, liquid fund
Safe/fixed income	30-40%	FDs, PPF, debt mutual funds
Growth/equity	30-40%	Equity mutual funds, stocks
Gold/alternatives	5-10%	SGBs, gold ETFs, digital gold

For FD vs mutual fund comparison, see our detailed guide. For gold options, check our how to invest in gold guide.

If you’re looking at stock trading, compare platforms on our best brokerage firms page. Popular options include Zerodha and Groww.

17. File Your First Indian Tax Return

Your first tax return as a returning resident is critical. Get it wrong and you could face scrutiny for years.

What you’ll need to declare:

• All Indian income (salary, rent, interest, capital gains)
• Foreign income (only Indian-sourced during RNOR period)
• Foreign assets in Schedule FA (once you become ROR)
• Claim foreign tax credit using Form 67 for taxes paid abroad

Filing deadline: July 31st of the following year (sometimes extended).

My strong recommendation: Get a CA who specializes in NRI returns for at least your first 2-3 filings. The RNOR period is complex. The interaction between DTAA, RNOR, and Schedule FA needs professional handling.

For tax-saving investments under the old regime, you have options like ELSS, PPF, NPS, and insurance premiums.

18. Build Your Indian Credit History

This surprises almost every returning NRI.

You might have an 800 credit score abroad. In India, you’re starting from zero. No CIBIL history. No credit score. This means difficulty getting credit cards, home loans, or even post-paid mobile connections.

How to build it:

1. Get a secured credit card from your bank (deposit-backed). Use it for small purchases. Pay in full every month.
2. If your bank offers a credit card based on your FD or account relationship, take it.
3. After 6-12 months, you’ll have enough history to apply for regular credit cards.
4. Don’t apply for multiple cards at once. Each rejection hurts your score.

This takes 12-18 months. Be patient.

19. Get Indian Insurance in Place

If you haven’t already sorted health insurance, do it immediately. Don’t leave a gap in coverage.

Health insurance: A family floater policy of Rs 25 lakh to Rs 1 crore. Major insurers include Star Health, HDFC ERGO, Care Health, and Niva Bupa. Compare plans, check network hospitals in your city, and read the fine print on waiting periods.

Term life insurance: If you have dependents, get a term plan. Indian term insurance is dramatically cheaper than foreign policies. A Rs 1 crore cover for a 35-year-old can cost as little as Rs 10,000-15,000 per year.

Cancel foreign insurance only after Indian coverage is active and confirmed.

Part 4: After Settling (3 to 12 Months)

20. Start Your Systematic Investments (SIPs)

Once you have clarity on your monthly income and expenses, start SIPs.

For equity: Consider a mix of large-cap, mid-cap, and flexi-cap mutual funds. If you want theme-based exposure, see our guide on thematic mutual funds. For lower volatility, look at hybrid funds.

For gold: Gold ETFs vs gold mutual funds is a common question. SGBs are generally the best option when available.

Start with small SIP amounts. Increase as you get comfortable with your cash flow.

21. Plan for Property (But Don’t Rush)

Every returning NRI feels the urge to buy property immediately. Resist it.

Rent for at least 6-12 months. Understand the neighborhood. Test the commute. Make sure the city is right for you.

Once you’re ready, you can explore real estate options. As a resident, you can buy any residential or commercial property without restrictions (unlike NRIs who can’t buy agricultural land).

If you’re considering real estate as an investment rather than to live in, compare it with other investment options. In many cases, mutual funds or REITs give better returns with far less hassle.

22. Keep Your Foreign Financial Life Tidy

Even after settling in India, you’ll have loose ends abroad.

• Continue filing foreign tax returns if required (US citizens must file regardless of where they live)
• Maintain one foreign bank account for pension, rental income, or emergencies
• Track exchange rates if you’re bringing money back in batches
• Keep foreign insurance active until Indian coverage is confirmed
• If you want to continue investing in US stocks from India, several Indian brokers now offer this

Once you become ROR, remember to declare all foreign assets in Schedule FA of your ITR every year. Non-compliance penalties are severe.

The Master Checklist (Quick Reference)

12 months before:

• [ ] Hire cross-border tax advisor
• [ ] Calculate RNOR window and optimal return date
• [ ] Open NRE account if needed
• [ ] Buy Indian health insurance
• [ ] Create master asset spreadsheet

6 months before:

• [ ] Start transferring savings to NRE
• [ ] Begin liquidating foreign assets per RNOR plan
• [ ] Review and restructure investments
• [ ] Get PAN card sorted

3 months before:

• [ ] Inform all banks of upcoming move
• [ ] Download 3 years of financial records
• [ ] File final tax returns in current country
• [ ] Close unnecessary accounts and subscriptions

1 month before:

• [ ] Final large money transfers to India
• [ ] Arrange temporary accommodation
• [ ] Organize all financial documents (digital and physical)

Month 1-3 after landing:

• [ ] Convert NRE/NRO to resident accounts
• [ ] Open RFC account
• [ ] Apply for Aadhaar
• [ ] Update KYC with all financial institutions
• [ ] Update mutual fund/demat status from NRI to Resident
• [ ] Get term life insurance

Month 3-12 after landing:

• [ ] Start SIPs
• [ ] Open PPF/NPS if desired
• [ ] Build credit history (secured card)
• [ ] File first Indian tax return
• [ ] Plan property purchase (research, don’t rush)

For the complete non-financial checklist (schools, shipping, city selection, lifestyle), see our return to India checklist.

5 Expensive Mistakes to Avoid

1. Missing the RNOR window. Every year of RNOR you lose is a year of taxable foreign income you could have avoided. Time your return carefully.

2. Delaying NRE/NRO conversion. Banks can and do freeze accounts. Converting late can also mean losing the tax-free status on NRE interest. Do it within the first 1-3 months.

3. Converting all foreign currency at once. Currency rates fluctuate daily. A community member converted $200,000 to INR in one shot. Two weeks later, the rate moved 2% in his favor. That’s Rs 3.4 lakh he left on the table. Spread conversions over time.

4. Not buying health insurance early. One community member’s wife needed surgery 8 months after they returned. Their Indian policy had a 2-year waiting period for pre-existing conditions. They paid Rs 6 lakh out of pocket.

5. Investing too quickly. The excitement of having access to new investment options (PPF, SGBs, unrestricted mutual funds) leads to over-allocation. Take your time. Understand your monthly expenses first. Then invest.

Frequently Asked Questions

Q: How soon do I need to convert my NRE account after returning?

Most banks expect conversion within 1-3 months of you becoming a resident (182 days in India). Don’t wait for the bank to notice – proactively inform them and initiate conversion.

Q: Is my NRE FD interest still tax-free after I become a resident?

NRE FDs can continue until maturity, and the interest remains tax-free until maturity. However, once the FD matures after you’ve become a resident, any renewed FD interest becomes taxable.

Q: Should I keep my foreign bank account?

Yes. Keep at least one. You’ll need it for pension income, handling any remaining foreign financial matters, and as a backup. Declare it in your Indian tax return once you become ROR.

Q: What if I become NRI again after returning?

It happens more often than people think. If you leave India again and spend less than 182 days in a financial year, you become NRI again. Your RFC account funds can be transferred back to NRE/FCNR. This is why RFC accounts are so valuable – they preserve flexibility.

Q: Do I need a financial advisor in India?

For the first 2-3 years, yes. The RNOR transition, account conversions, DTAA claims, and portfolio restructuring are complex enough to justify professional help. After that, you can manage independently if you prefer.

Q: Can I still send money abroad after returning?

Yes. Under the Liberalised Remittance Scheme (LRS), Indian residents can remit up to $250,000 per financial year abroad. TCS (Tax Collected at Source) of 20% applies on remittances above Rs 7 lakh (as per Budget 2025 rules), which is adjustable against your tax liability. See our guide on sending money abroad from India.

Q: What about my US Social Security benefits?

You can receive US Social Security benefits while living in India. They’re subject to a 25.5% withholding tax by the US. Under the India-US tax treaty, you may be able to claim credit in India for the tax withheld.

Q: How long does it take to build a credit score in India?

About 12-18 months from the time you start using a credit card or have a loan. It’s a gradual process. Start with a secured card, pay on time every month, and don’t apply for multiple products at once.

One Last Thing

Moving back is exciting. The financial side is the least glamorous part of it. But getting this right makes everything else easier.

When your bank accounts are sorted, your taxes are planned, your insurance is in place, and your investments are growing – you can focus on what actually matters. Settling into your new home. Helping your kids adjust. Spending time with your parents. Building the life you came back for.

Every item on this checklist has been validated by someone in our community who went through it. You’re not figuring this out alone.

Disclaimer: This guide is for informational purposes only. Tax rules, FEMA regulations, and banking requirements change frequently. Individual situations vary. Always consult qualified professionals – a cross-border tax advisor, a CA specializing in NRI taxation, and a SEBI-registered investment advisor – before making financial decisions.

Sources: RBI guidelines, Income Tax Act Section 6 (residential status), FEMA regulations, DTAA texts, and financial experiences shared by BacktoIndia community members.

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If you’re planning your move back, join our WhatsApp community at https://backtoindia.com/groups – 20,000+ NRIs helping each other with real, lived experience. It’s free and volunteer-run.