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Facts and Benefits of NRI Banking

Let us know some facts and benefits of NRI banking and the various types of accounts offered by the various banks in India to every Global Indian.

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Facts and Benefits of NRI Banking

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  1. Facts and Benefits of NRI Banking

  2. What is NRI Banking? In order to provide a safe haven for the incomes earned by Indians, who work in foreign countries, Government of India in association with RBI launched NRI Banking services in 1970. This is a special banking service offered only to those Indian citizens, who work or hold business outside the country, and are looking forward for a banking channel for savings and remittances. Based on the underlying currency and mode of use, NRI Banking permits 3 types of accounts, which are available with private as well as public sector banks. All of them are governed by Exchange Control Regulations. • Types of NRI Bank Accounts • NRE – Non Resident External Account • NRO – Non Resident Ordinary Account • FCNR – Foreign Currency Non Resident Account

  3. NRE Account • It is a savings account, which is ideal for Indians residing abroad. • Best channel to transfer foreign earnings easily within the country • NRE account can be opened by any NRI as Savings and Fixed Deposit Accounts • The currency to be maintained is Indian Rupee and the interest earned on savings is not taxable • Nomination is allowed and an NRI join account holder is permitted • Best for paying bills and other expenses within the country

  4. NRO Account • Available as Savings, Current or Fixed deposits. • Best channel for saving money earned through income sources within the country, like rent, dividend, or pension • Funds cannot be repatriated; however, the interest earned can be withdrawn • Interest earned is taxable • Currency to be maintained is Indian Rupee and a local person is permitted to be the joint holder • Only Indian Rupee is allowed to be deposited and maintained in this account

  5. FCNR Account • This is foreign currency fixed deposit account for NRIs • Currencies allowed include US Dollars, Pounds, Japanese Yen, Euro • Indian currency cannot be deposited • Only an NRI can become a joint holder • Both deposit and the interest earned on them are tax-free

  6. Thank You

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