What Are The Features Of Nri Bank Accounts?

Any Non-Resident Indian with earnings both abroad and/or in India often face difficulties managing their finances. They also find it difficult for tracking bank accounts in different countries, and when trying to repatriate money to their home account. When an individual is facing these difficulties, they can opt for nri banking which is provided by various financial institutions.

When an individual decides to opt for nri services, they will have to decide between three choices.

Three types of nri banking options are:

1. Non-resident external (NRE) savings account
2. Non-resident ordinary (NRO) account
3. Foreign currency non-resident fixed (FCNR) deposit account

There are certain features that come with opting for these nri banking accounts. Some of these features are listed below:

Features of NRE accounts:

1. An NRE account is opened for keeping foreign currency. Indian currency cannot be deposited in this account.
2. These type of nri services are maintained in Indian currencies.
3. These accounts can be opened as savings and fixed deposit accounts.
4. Amount kept in these accounts can be easily transferred to any other account, say NRO or a resident account or to some other NRE account as well.
5. Once an individual decides to return to India, the account gets converted into resident account.

Features of the NRO accounts:

1. These accounts can be opened as both savings and fixed deposit accounts.
2. Individuals can open the NRO accounts in joint names with a resident or an NRI.
3. Amount held in these accounts can easily be transferred to other NRO accounts.
4. A nominee could be added to the NRO account.
5. This type of nri banking options involve Indian currency and the account is maintained in Indian rupee.

Features of FCNR fixed deposit accounts:

1. There is no income tax charged in India on these earnings through these nri banking accounts.
2. An individual can avail the facility of getting an overdraft on the savings or current account.
3. These accounts operate only in foreign currency, individuals can deposit currency other than the Indian rupee in the account.
4. The interest which gets accrued in these accounts are paid in the same foreign currency as it is being maintained in.
5. A nominee can be added in the FCNR account.

With the introduction of internet, the world of banking has been revolutionized, now customers can conduct their financial transactions over the internet, from the comfort of their homes, by visiting the official website of the financial institution, some financial institutions have also introduced apps for their customers, providing them with the option of conducting their nri banking financial transactions on the go. A lot of financial institutions have a wide array of banking services available for Non-resident Indians. From savings account to premium banking services and from deposits to investments in mutual funds, insurance or portfolio management services. Different financial institutions will an be able to deliver nri services at an individuals doorsteps, so no matter where an individual is in the world, the banks will be able to provide them with the provisions to keep their finances in check.

Arjit Chalmela is a finance student who loves to write in his free time. He has spent considerable time researching the foreign exchange rate.