In banking terminology, the term NRI account refers to funds deposited by a Non-Resident Indian or NRI. The funds are deposited with a financial institution authorised by the Reserve Bank of India to provide such services. A Non-Resident Indian is an Indian citizen who primarily resides outside of India. NRI account lets a person transfer their earnings to India conveniently with complete security. They can repatriate the funds held in the account along with interest earned at any point of time and they don't even have to pay tax on the interest amount. With a host of direct banking channels, which are easily available at one’s fingertips, he/she can stay in complete control of their hard-earned income abroad.
In order to open a NRI account the documents needed are as follows:
• Photocopies of the pages of the passport containing passport details and personal details of the applicant.
• Photocopy of Permanent Account Number (PAN) or Form 60 in absence of PAN.
• Photocopy of valid visa or work permit.
• One passport photograph of the applicant.
• Documents confirming the overseas or Indian address. The given address has to match the address mentioned in the application form.
• An Initial Payment Cheque or Draft from the applicant’s own account equivalent to the amount required to maintain the average monthly balance in the account. (In case of Draft, Demand Draft slip is mandatory).
In case, the applicants cannot come to the bank for opening their account, then all photocopies of the above-mentioned documents need to be attested by either an Indian Embassy or Notary or by a Banker overseas. If the documents are not certified, then all the documents are needed to be self-signed and submitted.
An NRI account can be used by an applicant living abroad for the following purposes:
• For transferring of funds freely between India and abroad whenever required.
• For earning higher interest rates on the account with zero tax payment on the interest earned by the NRI account holder in India.
• For withdrawing cash easily and for shopping worldwide with International Debit Card.
• For appointing a mandate to operate the applicant’s account for him or her.
• For conducting online transactions securely, 24x7, with the net-banking facility.
• For payment of utility bills such as electricity bills, phone bills, mobile phone payments, etc. just by a simple registration.
• Other benefits include getting a personalised chequebook, tax exemptions on interest earned and exemption on wealth tax, free email statement facility, availability of safe deposit lockers at certain branches, facilities of investing in Mutual Funds by linking the NRI account to the investment savings account.
All these benefits provided by the NRI accounts facilitate the Non-Residential Indians to maintain them without much headache and in a secured manner.
In order to open a NRI account the documents needed are as follows:
• Photocopies of the pages of the passport containing passport details and personal details of the applicant.
• Photocopy of Permanent Account Number (PAN) or Form 60 in absence of PAN.
• Photocopy of valid visa or work permit.
• One passport photograph of the applicant.
• Documents confirming the overseas or Indian address. The given address has to match the address mentioned in the application form.
• An Initial Payment Cheque or Draft from the applicant’s own account equivalent to the amount required to maintain the average monthly balance in the account. (In case of Draft, Demand Draft slip is mandatory).
In case, the applicants cannot come to the bank for opening their account, then all photocopies of the above-mentioned documents need to be attested by either an Indian Embassy or Notary or by a Banker overseas. If the documents are not certified, then all the documents are needed to be self-signed and submitted.
An NRI account can be used by an applicant living abroad for the following purposes:
• For transferring of funds freely between India and abroad whenever required.
• For earning higher interest rates on the account with zero tax payment on the interest earned by the NRI account holder in India.
• For withdrawing cash easily and for shopping worldwide with International Debit Card.
• For appointing a mandate to operate the applicant’s account for him or her.
• For conducting online transactions securely, 24x7, with the net-banking facility.
• For payment of utility bills such as electricity bills, phone bills, mobile phone payments, etc. just by a simple registration.
• Other benefits include getting a personalised chequebook, tax exemptions on interest earned and exemption on wealth tax, free email statement facility, availability of safe deposit lockers at certain branches, facilities of investing in Mutual Funds by linking the NRI account to the investment savings account.
All these benefits provided by the NRI accounts facilitate the Non-Residential Indians to maintain them without much headache and in a secured manner.
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