The Non Resident Indians (NRIs) can manage their income earned abroad and in India through two types of banks accounts in India i.e. the Non Resident External (NRE) account and Non Resident Ordinary (NRO) account. Both of these accounts can be opened in the form of current, savings, fixed or recurring deposit accounts. A Non Resident External (NRE) account is a current or savings account maintained in India which allows the holder to restore the foreign earned income and transfer it to India efficiently. The funds transferred to an NRE account in foreign currency are converted to INR.
Some banks may ask the account holder to maintain an average balance of INR 10,000 per month at account level or INR 25,000. In case the account holder fails to maintain this balance, he/she will be charged for the same. The NRE account can be opened by any Non Resident Indians (NRI).
Benefits of having an NRE account
- The interest you earn on the savings / Fixed deposit is non-taxable in India.
- The funds in NRE account can be totally repatriated.
Eligibility & Documents required for NRI Account
- The applicant should be a Non-Resident Indian as per RBI guidelines
- Copy of Passport which has personal and passport details
- Copy of Valid Visa / Work Permit / Residence permit
- Address Proof – Overseas
- Address Proof – Indian Address
- Some banks may need attestation of all documents by Indian Embassy
Recommended Read :
- Who is a NRI?
- Who is Not An NRI?
- Banking Facilities for An NRI
- Who is a Person of Indian Origin PIO?
- How to Open Fixed Deposits for NRI?
- Home Loan for NRI
- What is An NRE Account?
- What is NRO Account?
- What is FCNR Account?
- Who is a OCI Overseas Citizen of India?
- Overseas Corporate Body – OCB Investment