If you are shifting base to another country, it is necessary for you to close your current savings account in India, or get it converted to an NRO account. A NRO (Non-Resident Ordinary) account allows you to deposit your earnings that you earn from India, like interest, dividends, rent, etc. Funds collected from abroad which come in fully convertible currencies may be deposited in an NRO account. You are also entitled to issue cheques for making local payments, EMI payoffs and investments through your NRO account.
Following the steps
You can easily convert your existing resident savings account into an NRO account by the following steps:
i) Filling up the form: There are specific forms prescribed by the banks for converting savings accounts to an NRO account. You can either collect the form from your bank or download it from your bank website. Remember that it is necessary for every account holder to sign in the form. You can use a single form for converting all your savings accounts that you have with your bank.
ii) Providing documents: Along with the form mentioned above, you need to fill and submit a form for opening a new account too. The proof of address of your overseas address, copies of your passport, work permit and valid visa requires submission. A copy of your OCI (Overseas Citizen of India) or PIO (Persons of Indian Origin) card, if applicable, needs to be submitted.
iii) Adequate balance in account: If your account that you wish to convert to an NRO account has zero or very low balance, you have to fund it with the required minimum balance.
iv) Submit to the bank: Once you have filled up the forms and prepared the necessary documents that are required, you have to submit it to that bank branch where you have the account. If you are already in some other country, the Indian Embassy needs to attest your forms and documents and then you can send it to your bank.
Once your form and the documents are received, examined and verified by the bank, your resident savings account will be re-designated as your NRO accounts. The bank may charge you an amount to carry out this process of conversion. You may easily repatriate the interest that you earn on NRO accounts, once the taxes have been deducted
Following the steps
You can easily convert your existing resident savings account into an NRO account by the following steps:
i) Filling up the form: There are specific forms prescribed by the banks for converting savings accounts to an NRO account. You can either collect the form from your bank or download it from your bank website. Remember that it is necessary for every account holder to sign in the form. You can use a single form for converting all your savings accounts that you have with your bank.
ii) Providing documents: Along with the form mentioned above, you need to fill and submit a form for opening a new account too. The proof of address of your overseas address, copies of your passport, work permit and valid visa requires submission. A copy of your OCI (Overseas Citizen of India) or PIO (Persons of Indian Origin) card, if applicable, needs to be submitted.
iii) Adequate balance in account: If your account that you wish to convert to an NRO account has zero or very low balance, you have to fund it with the required minimum balance.
iv) Submit to the bank: Once you have filled up the forms and prepared the necessary documents that are required, you have to submit it to that bank branch where you have the account. If you are already in some other country, the Indian Embassy needs to attest your forms and documents and then you can send it to your bank.
Once your form and the documents are received, examined and verified by the bank, your resident savings account will be re-designated as your NRO accounts. The bank may charge you an amount to carry out this process of conversion. You may easily repatriate the interest that you earn on NRO accounts, once the taxes have been deducted
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