When you plan to settle abroad for work, studies, or any other reason, you must be open to a wave of change in your life. For instance, you cannot rely on your existing bank accounts in your home country to manage your finances. Instead, it is necessary to opt for NRI banking services designed by the Reserve Bank of India (RBI) to make banking easier for Indians residing abroad.
As a Non-Resident Indian (NRI), you will find that many banking products are available in the market suited to your financial needs. IndusInd Bank, for instance, offers multiple NRI products to help you manage your financial needs while staying overseas. Read this article to learn more about NRI banking services.
What are NRI Bank Accounts?
According to the Foreign Exchange Management Act (FEMA), an NRI must maintain an NRI account to carry out financial transactions in India. Hence, you must use the NRI banking services to repatriate money earned abroad to your family in India or maintain your savings here.
To make an informed choice while choosing the right NRI product, you must research the different types of accounts available to you. NRI accounts can be opened by an NRI or Person of Indian Origin (PIO) or an Overseas Citizen of India (OCI).
Types of NRI Bank Accounts
There are 3 different types of NRI accounts available under NRI banking services in India:
Non-Resident (External) Rupee Account (NRE Account)
This is a rupee-denominated account that makes it possible to securely transfer your foreign earnings to your homeland. You can deposit the funds in dollars, euros or another currency and withdraw them in Indian National Rupee (INR). IndusInd Bank’s NRE savings account is an excellent way to park your foreign earnings in India.
Non-Resident Ordinary Rupee Account (NRO Account)
The NRO account helps you manage the income that you have earned in India. Similar to the NRE account, you can still receive funds in different currencies, but the deposit will be held in Indian denominations. The source of income for the NRO account can be house rent, dividends, interest income, etc.
However, the interest income you earn on the NRO deposit is taxable under the Income Tax Act. A significant advantage of this account is that you can open a joint NRO account with the help of a resident Indian and manage your funds with ease. There is also no risk of exchange fluctuation with NRO accounts.
Foreign Currency Non-Residential Account (FCNR Account)
Finally, if you require the services of a fixed deposit, you can opt for an FCNR account. It allows you to open the deposit in the currency of your resident country, and the interest you earn on it is not taxable. Also, the funds are entirely repatriable on maturity, and the interest rate remains fixed throughout the tenure.
Over to You
Now that you know about the different NRI banking services in India, choose a bank that can provide you with a seamless banking experience. IndusInd Bank’s NRE savings account can help ease your financial obligations and keep your wealth secure. So, open an NRI account and forget about your financial woes while living overseas.
