When a Resident Indian becomes an NRI, he needs to convert his resident savings account to NRO account as per the laws pertaining to Indian banking and income tax. The NRO account provides the simplest way to access and operate funds and investments already made in India. The accounts can receive foreign remittances, while having a joint account holder who is a resident India, e.g. the account holder’s parents, and RBI also permits repatriations from NRO account to abroad limited by a maximum annual amount.
In order to convert your current resident saving account to NRO account, you first need to inform the bank about your NRI status. You will need to provide proof that the account holder is now a non-resident of India in accordance to the definition in the Indian tax laws. Once a person becomes an NRI, he cannot continue to hold bank accounts with resident India status.
In order to convert the existing resident bank account into an ordinary non-resident account you need to submit following documents to your bank:
• Identity proof such as passport, driving license, voter id card, or aadhar card
• NRI status proof, e.g. green card or copy of your VISA
• Proof of foreign address, through utility bills, telephone bills or foreign bank statements
• Recent photographs which are not older than 3 months.
The applicant or account holder must provide proof of overseas resident in the approved form. This form includes employment details, student status, dependent visa status, or a copy of the resident permit in the country one is currently living in.
This proof has to be attested by the Indian embassy, notary, or an Indian bank with an overseas branch. Many banks accept self-attested copies of documents. If you need to include your local Indian address, you need to submit another local address proof with attestations.
An NRI can hold three types of bank account namely, NRE, NRO, and FCNR. Out of these three, FCNR, which stands for Foreign Currency Non-Resident, is a foreign currency account which can only be opened as fixed deposit with Indian banks. For daily need, you can either have an NRE saving account or an NRO account. Since you cannot deposit Indian money into NRE account, you must have a NRO account to deposit the income you are receiving in NRO. This income can include rental incomes, dividends received from existing investments such as the Stock Market, in order to receive INR from any friend or family.
The main reasons to open NRO account are as follows:
• To receive any income in Indian rupees e.g. rental income or dividends.
• In order to deposit INR as NRE account can only be funded using foreign currency or remittance.
This is how we can convert a bank account into NRO account.
In order to convert your current resident saving account to NRO account, you first need to inform the bank about your NRI status. You will need to provide proof that the account holder is now a non-resident of India in accordance to the definition in the Indian tax laws. Once a person becomes an NRI, he cannot continue to hold bank accounts with resident India status.
In order to convert the existing resident bank account into an ordinary non-resident account you need to submit following documents to your bank:
• Identity proof such as passport, driving license, voter id card, or aadhar card
• NRI status proof, e.g. green card or copy of your VISA
• Proof of foreign address, through utility bills, telephone bills or foreign bank statements
• Recent photographs which are not older than 3 months.
The applicant or account holder must provide proof of overseas resident in the approved form. This form includes employment details, student status, dependent visa status, or a copy of the resident permit in the country one is currently living in.
This proof has to be attested by the Indian embassy, notary, or an Indian bank with an overseas branch. Many banks accept self-attested copies of documents. If you need to include your local Indian address, you need to submit another local address proof with attestations.
An NRI can hold three types of bank account namely, NRE, NRO, and FCNR. Out of these three, FCNR, which stands for Foreign Currency Non-Resident, is a foreign currency account which can only be opened as fixed deposit with Indian banks. For daily need, you can either have an NRE saving account or an NRO account. Since you cannot deposit Indian money into NRE account, you must have a NRO account to deposit the income you are receiving in NRO. This income can include rental incomes, dividends received from existing investments such as the Stock Market, in order to receive INR from any friend or family.
The main reasons to open NRO account are as follows:
• To receive any income in Indian rupees e.g. rental income or dividends.
• In order to deposit INR as NRE account can only be funded using foreign currency or remittance.
This is how we can convert a bank account into NRO account.
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