The most common types of NRI accounts are savings accounts, current accounts, and fixed deposits.
Each type of account offers different benefits and features such as interest rates, minimum balance requirements, and tax deductions. To open an NRI account, NRIs need to provide proof of identity, residence, and income. They must also provide documents such as a passport, visa, and PAN card.
NRI accounts are subject to regulations imposed by the Reserve Bank of India (RBI).
The RBI stipulates that all money transferred to and from India must be done through official banking channels. This means that NRIs must use a bank transfer or other approved methods to move money between India and their NRI account.
In addition, NRIs must comply with the Foreign Exchange Management Act (FEMA) which regulates foreign exchange transactions. This includes the requirement to declare any foreign income or assets to the RBI.
Finally, NRIs should be aware that they may be subject to taxation in both India and the United States. It is important to be aware of the applicable tax laws in both countries before opening an NRI account.
1. Fill up the Online Application Form Online and select “United States” in “country of residence”
2. Fill up all the required fields and accept the online terms and conditions
3. Upload the required documents
4. Once the account is opened, you will be given a chequebook and an ATM card
5. You can also appoint a resident Indian as a mandate holder for ease of operation of your account in India
The main benefits of having an NRI account in India are:
1. Convenient money transfers to India
You can deposit the income earned in overseas countries in such accounts. Thereafter, the funds can be accessed through any bank branch in India as well.
2. Tax exemption for NRE interest income
As per the prevailing tax laws in India, the interest income earned on NRE Accounts is not subject to Income Tax and thus remains tax-free for the account holder.
3. Repatriation of funds
Both NRO and NRE Saving Accounts allow smooth movement of funds because you can repatriate both, the principal and interest abroad. Funds in NRE Accounts are fully and freely repatriable.
4. Preferential interest rates
NRI accounts often offer preferential interest rates on deposits as compared to resident accounts.
5. Wide range of products and services
You can avail a wide range of products and services with an NRI account, including credit cards, loans, Demat accounts, etc.
NRIs who want to open an NRI account in India from abroad can do so by submitting the required documents and information to the bank’s branch in their country of residence.
They can also contact the bank’s international service centre for assistance. Additionally, they can contact the bank’s customer service centre and request for an online application form. NRIs can also choose to submit their documents online, such as passport, visa, PAN card, and proof of residence.
Once all the necessary documentation is submitted and verified, the NRI can open an NRI account and begin trading in Indian markets.