NRI accounts are necessary for the Non-Residential Indians who live in foreign countries and need to maintain the accounts with an Indian bank. The people permanently residing in a foreign country can also open NRI accounts from the leading Indian banks. They are considered as POI and have the right to manage an NRI account.
Top-notch Indian banks allow the NRI citizens to have both fixed deposit and savings bank accounts. NRO, NRE and FCNR accounts are the most known variants of NRI accounts that most people open in the banks.
The bank accounts for the Non-Residential Indians are unique in many accords when compared to the regular bank accounts for the residing Indian citizens. Moreover, there are different steps to open an NRI account with the Indian banks accredited by the RBI.
The essential steps for opening the NRI account are mentioned in details below:
Visiting the Bank Branch
The most convenient way of opening an NRI account is visiting the nearest branch of a reputed bank. The people working in the bank are always eager to help you open an NRI account. Initially, the bankers ask you about the kind of NRI account that you want to open. So, it is essential to have technical knowledge of all types of NRI accounts mentioned above. You can get excellent suggestions from the bank professionals regarding the type of mind you need to open.
At first, you are expected to go through a minute process of document verification. The primary document you need to produce while opening the account is the Indian passport. Make sure all the information in your passport is genuine. Authentic address proof is also necessary during the account opening. The address you enter on your application must match to that of the address proof.
For opening an NRI account, it is a clear mandate for you to show the NRI status. This will explain the actual reason why you might be considered as a Non-Residing Indian. The bank will grant you an NRI account if you are into a job in the foreign land or pursuing an educational course. The bank also checks the type of visa you hold.
Furthermore, it is mandatory to either produce the PAN card or form 60 regarding the authentication of the presence of other accounts in the Indian banks.
You must also take a clear and coloured passport size photographs to the bank. It is always safe to take enough photographs of the bank.
After the document verification is completed, you have to fill the application form very carefully. To ensure that it is error-free always take your time and cross-check every information you enter there.
Some reputed banks also ask you for a DD or cheque worth of a certain balance. This value is of the minimum worth you must mandatorily have in the NRI account. You should provide the DD slip along with the DD cheque.
People already living in a foreign land can initiate the NRI account via the website. All the documents mentioned above can be delivered to the bank online. However, every document must have the attest of the notary, Indian embassy or a designated banker.
In the case of online initiation, the application is sent up by the bank online, and the applicant needs to fill it up.
Opening NRI Account for Minors
Indian banks allow the minor NRI citizens to open the various kind of the NRI account. The children above the age of 10 can open the NRE, NRO and FCNR account on their names. However, the authorization of the guardian is mandatory for the children who are below the age of 10. All the other steps for opening the NRI account remains the same for the minors.
Importance of Opening the NRI Account
An NRI account is vital for every Non-Residential Indians who are already residing in other countries or immigrating soon. The reasons for importance are mentioned below:
The FEMA guidelines suggest that no NRIs are allowed to manage regular savings bank accounts in the country. On turning into an NRI, an Indian citizen must transform all the pre-existing accounts into either NRE or NRO accounts.
Tax relaxation is another most alluring convenience for which most Indian immigrant or foreign PIOs consider it essential to have the NRI accounts.
More effortless and seamless cash flow is acquired by every NRI having an exclusive account for them. FDs in such accounts can be easily kept in foreign currencies like USD, Canadian Doller, Euro, Pound, Yen etc.
Whenever you desire to open an NRI account, make sure you have decent knowledge regarding its management. Do not hesitate to seek for the consultations of the banking experts before making a final decision regarding opening an NRI account. The best way you can flawlessly maintain an NRI account is by keeping up utmost transparency.