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Banking facilities for an NRI

Banking facilities for an NRI

A Non-Resident Indian NRI is a person who is an Indian citizen. But this person lives in a foreign country for the purpose of employment or conducting business operations. Or the stay in the foreign country is for an uncertain period of time. In India, various banking facilities are provided to Non-Resident Indians right from opening of bank deposits and accounts and remittance facilities.

Examples of Non-Resident Indians are individuals having positions in the United Nations. The Central or the State Government of India also sends officials to foreign countries for temporary objectives. These persons are Indian citizens but they have to stay in a foreign country for a specific period of time or till completion of task. These individuals are known as Non-Resident Indians.

The various banking facilities provided to Non-Resident Indians are as follows:

Banking facilities for an NRI

Opening of bank accounts and deposits

Like an ordinary account holder, the Non-Resident Indian can also open accounts such as Non-Resident (External) Rupee Account. For these accounts, the interest rate charged is similar to that of the domestic accounts. The NRE accounts have to be renewed by the account holders so that any changes in interest rates will reflect to their accounts.

In case of Foreign Currency Non-Repatriable accounts (FCNR), the Reserve Bank of India designates permissible currencies at regular intervals. Authorised dealers can accept and maintain term deposits.

In order to save current earnings, NRO accounts are operated. These accounts credit the earnings of a Non-Resident Indian such as dividends and interest. In case of term deposits of NRO, banks can fix the interest rates freely.

For NRO account balances, repatriation is allowed through authorized dealers up to certain limit and after deduction of required taxes. This specific limit of repatriation also includes profits earned from immovable properties.

Types of investments allowed

Investments by repatriation are allowed such as domestic mutual funds, government securities, shares, debentures, etc. On non-repatriation basis, the investments made are commercial paper, shares, debentures, deposits with NBFC, money market mutual funds and so on.

A Non-Resident Indian may also invest in immovable property in India. But it must be noted that this immovable property must not comprise of agricultural land, farm house or any kind of plantation. Repatriation is permissible for the profits of sale of immovable property, returning of purchase consideration and housing loans.

Remittance facilities

The remittance facility available with Non-Resident Indians is for current income such as dividend, rent, interest, etc. This is also given to those individuals who do not have a NRO account. But for that, you need to produce a certificate from the Chartered Accountant mentioning the amount to be remitted.

The sale proceeds of an asset also can be remitted by a Non-Resident Indian. But this requires certain documents to be submitted such as certificate from Chartered Accountant and Authorized Dealer and a letter from the remitter.


You may also refer to tax regulations applicable for non-residents. It is available with most of the banks. Some of the banks also issue credit cards to the Non-Resident Indians. And these cards have international validity.

Thus, a Non-Resident Indian receives various banking facilities in India.

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Ankita Patil is Commerce as well as a Law graduate from University of Mumbai. She is a qualified Company Secretary from ICSI, New Delhi.


  1. I am thankful to you Ankita for giving us this detailed information about what all banking facilities are available for NRIs in India. Non-resident foreign citizens of Indian Origin are treated on equally as NRIs for the purpose of certain banking facilities. An NRI should always have the basic knowledge of these facilities in order to gain the best of the same. Great article!

  2. The article is a great attempt in making the people aware of the bank facilities availed to NRIs. It is quiet beneficial for a person who is going to be in other country for work or so and would like to know regarding the bank facilities being a bit moulded for him in his own country.I am really thankful to the writer for such an educating material.

  3. Non resident Indians can avail banking services in their country is beneficial for them and the country as a way of earning foreign reserves. The article provides a through information as to the various banking facility available for the NRI’s.


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