Those Indians who reside outside India, or those who are of Indian origin but are not residing in India, are referred to as NRIs or Non-Resident Indians. Although they live abroad, it is a must for them to have an NRI account. They can open an account under any RBI authorized financial institution or bank which provides a number of services and benefits.
Some of the reasons why Non-Indian residents should have an NRI account have been listed below:
• One of the most important reasons why an NRI must have an NRI account is that it is ILLEGAL to have a residents saving account when someone becomes an NRI. It is against the law according to FEMA regulation. Thus, the person must find a new account to invest his funds in. This is why an NRI account plays a valuable role.
• Besides the viability of the account, an NRI has to manage money- the transfer of money, its conversion, its repatriation etc. All of this can be handled and managed by an NRI account.
• There are basically two types of NRI accounts:
1. NRE account- This is a non-resident external account, where the NRI can save all his earnings in foreign currency. It gets automatically converted into INR, when deposited in the account.
2. NRO account- This is a non-residence account, in which both Indian as well as foreign currency can be deposited.
• Another interesting fact is that the NRO account is tax free. But the NRE is liable to tax payment of GOI @ 30%.
• One major positive feature of having an NRO account is that it is fully repatriable, while an NRE account can be repatriated up to 1 million.
• With the advancement in technology, those working overseas need not worry about sending money to their loved ones back in India. They can do so on the go, online, through their cells from anywhere and at any time.
• The family members back at home can withdraw this money sent to them easily.
• Not only can an NRI save and deposit money into their NRI account, but even friends or family can deposit money into that account which can be transferred by the NRI whilst staying in a different part of the world without the hassle of paying extra fees or providing legal documents.
All these above mentioned points provide enough reason for an NRI to open an NRI account. It will definitely make their and their family’s life much easier and simpler. The account helps maintain and support long distance relationships and bonds.
Some of the reasons why Non-Indian residents should have an NRI account have been listed below:
• One of the most important reasons why an NRI must have an NRI account is that it is ILLEGAL to have a residents saving account when someone becomes an NRI. It is against the law according to FEMA regulation. Thus, the person must find a new account to invest his funds in. This is why an NRI account plays a valuable role.
• Besides the viability of the account, an NRI has to manage money- the transfer of money, its conversion, its repatriation etc. All of this can be handled and managed by an NRI account.
• There are basically two types of NRI accounts:
1. NRE account- This is a non-resident external account, where the NRI can save all his earnings in foreign currency. It gets automatically converted into INR, when deposited in the account.
2. NRO account- This is a non-residence account, in which both Indian as well as foreign currency can be deposited.
• Another interesting fact is that the NRO account is tax free. But the NRE is liable to tax payment of GOI @ 30%.
• One major positive feature of having an NRO account is that it is fully repatriable, while an NRE account can be repatriated up to 1 million.
• With the advancement in technology, those working overseas need not worry about sending money to their loved ones back in India. They can do so on the go, online, through their cells from anywhere and at any time.
• The family members back at home can withdraw this money sent to them easily.
• Not only can an NRI save and deposit money into their NRI account, but even friends or family can deposit money into that account which can be transferred by the NRI whilst staying in a different part of the world without the hassle of paying extra fees or providing legal documents.
All these above mentioned points provide enough reason for an NRI to open an NRI account. It will definitely make their and their family’s life much easier and simpler. The account helps maintain and support long distance relationships and bonds.
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