Steps to take when converting a resident account to an NRO account

As an NRI, you will not be able to hold any residential bank accounts or have the authority to use the functions of them. At the same time, these accounts will be converted into an NRI account, which will provide you with the financial assistance and function you require when settled abroad. This account will either be converted into the NRE or NRO account.

The NRO account can be opened with funds which are either remitted from abroad or even generated in India. Like the local savings account, these accounts will have certain restrictions on repatriations of the proceeds to the country you are residing in. Here are the steps you will need to take when converting your account to the NRO account.

Step 1: Submission of form

Plenty of banks provide a specific form when there is a requirement to convert an existing saving account to an NRO account. These forms can be requested from the bank. Alternatively, you can also apply for the conversion process online and download the form from the bank website. A single form can normally be used to convert all your saving accounts opened in a single bank, against the same customer ID.

Step 2: Provision of documents

While converting a regular account to an NRO account, in a way, you are opening a new account. Therefore, you will also need to provide a filled form for a new account opening, in order to support this conversion request. In addition to this, the address proof of the overseas address must also be provided. You will need to submit copies of your passport, valid visa or even your work permit. You also need to submit your OCI/PIO card.

Step 3: Providing the right funding
The requirement for the resident saving account and the NRO account is different. For one, the account in question must have a minimum balance of 7500 Rs. Before being converted to the NRO account. If there is the insufficient amount, the necessary steps must be taken.

Step 4: Submission of documents
The documents must be submitted to the required bank branch. In the event you have already traveled outside, the form and the documents must be attested by the Indian embassy. It must be then sent to the branch.

Step 5: Change of account status

Once the required forms and documents have been received by the bank and verified, the status of the account will change. It will be re – designated from a residential savings account to the required NRO account. This re – designation may not change the account number, but it may be flagged off as an NRO account amongst the bank records.

How to open a NRI account from abroad

As a NRI whose settled abroad, has the opportunity to invest in various options back home. However, before investing in any of these options, the NRI must first open a NRI account. In this case, either the NRE account or the NRO account must be opened. Here is how you can open either account even though you are settled abroad.

Step 1 – Contact the bank

The first step you need to take is to contact the bank. You can either contact them through mail or call their helpline. Several of the major banking institutes also have a digital enquiry form which you can fill up, wherein which, a representative from the respective bank will call you back. Ensure that you talk to a representative from the bank and get the required details about the NRI account you would want to open.

Step 2 –Book an appointment to fill the account opening form

Once the necessary contact has been made with the bank representative and the information required, you will need to fill up the account opening form then. Normally the bank will provide you with the required paperwork through attachments or emails. Normally, it would take 20 minutes or less to fill up. However, it is best to book an appointment with the bank to get the required assistance to fill up the paperwork required. If you are unaware or unsure of any details within the form, you can leave it blank, until you get the required clarification.

Step 3 – Get your documents assembled in order
As the part of the loan application process, you will need to submit a certain set of documents. However, when filling up the form, you would not want to distract yourself, running around to get the required documents pertaining to the application form. To assist you in this step, you need,
• a copy of the first and last page of your passport
• a copy of the visa page on your passport
• proof of residence through documents such as your driver’s license, phone or utility bills
• passport photographs

As per the bank you are applying at, you may need to notarize or self-attest these documents. Once these documents are verified, your bank will proceed to contact you with the next step.

Step 4: Write a check in your currency or the currency of your resident country

Once your documents are verified, you will need to provide the finance in order to open the NRI account. You can either make the payment in the local currency or in the currency of your residency. You can make it in the form of a check or demand draft.

Step 5 –Deliver it to the bank

Once the required documents are filed, application form is filled and the finance provided, you will need to send these requirements to the bank through a mail. You may need to send it to the PO box or to the Indian address.

NRE account: All you need to know about crediting and debiting through this account

Plenty of individuals who have settled abroad, look for opportunities to invest back home. There are plenty of options available in the market, with the NRI accounts being one of the most popular options.

Additionally, within the NRI account, the non – resident external account has been one of the most favorable ones. This NRE account can be used as savings, current, recurring, or fixed deposit accounts, and depending on your financial needs. It also permits the account holder to invest and hold foreign currency. To make the most of this account here is what you need to be aware of:

What are the permitted credits to the account?

The following factors are permitted as credits to the account:

• The proceed of remittance in any currency is permitted to India.
• If the account holder is one a temporary visit to India, the proceed of personal cheques drawn on his foreign currency accounts, bank drafts or travelers cheques may be credited.
• The traveler’s cheques must be issued outside India. Alternatively, the bank drafts should be standing or endorsed in the name of the account holder.
• The proceed of the foreign currencies or bank noted tendered by the account holder should be supported by a currency declaration form whenever applicable.
• Any transfer from another NRE or FCNR account is permitted
• Any interest that is accrued on the funds within the account can be credited in the account.
• The interest accrued on government securities or dividends can be credited to the account. However, it must be proven that the securities or units that were purchased by debit, and deposited in the account holders NRE or FCNR account. Alternatively, it must also be proven that it was an out of inward remittance through normal banking channels.
• The maturity proceeds of government securities can be deposited in the NRE account. However, they must be proven that they were originally purchased by debit, to the account holder’s NRE or FCNR account. Alternatively, it must also be proven that it was an out of inward remittance received in a free foreign exchange from outside India.

What are the permitted debits to this account?

The following factors are permitted as debits from the account:
• Local disbursements can be permitted as debits
• Remittances from outside India can be permitted as debits
• The transfer of funds to NRE or FCNR accounts of the account holder, or any other person that holds the power of attorney to the account.
• Investments in the form of shares, securities, or commercial paper of an Indian company can be debited. Funds can also be debited from this account for the purchase of immovable property within India, provided that the purchase is made in accordance with the regulations granted by the Reserve Bank of India.

Tips to save on online money transfer

Over the last few days, sending money through the method of an online transfer has become a popular option. Whether it is sending the funds internationally or domestically, certain factors are required to be kept in mind in order to save funds during this online money transfer. In order to plan better savings during these transfers, here are a few factors you can consider:

Locked in rate

Exchange rates play an important role when it comes to calculating the overall amount. At times, you may notice a considerable difference in the amount before you make the transfer and after the transfer has been processed. This is due to the ‘bait and switch’ approach, where a lower amount is displaced before the transfer is made with a higher amount after it has been made. To avoid such an increase in the exchange amount, opt for a service that provides you a lock in the rate.

Narrow your research

While there are plenty of options available in the market, it is often tough to consider all of them without assistance. The internet search engine will provide you with plenty of options. However, to get the best option out of the available options, you need to narrow down your research to specifics. For example, searching for a money transfer service will provide you with a general search. However, if you search for money transfer service with deals will provide you with a more specific search. Through such a search, you will have a better chance of finding the best deal and discounts that will help save funds during an online transfer.

Payment option
When you are setting up a money transfer, you will notice that there are plenty of payment methods you can opt for to make a transfer. Some of the common options include a credit card, debit card, and ACH, which the automated clearing house option. Each of these options has different rates. Therefore you must compare them before making a choice.

Choosing the best time
The time you opt for transfer will also play an important role. Special promotions often come up during holidays or special international holidays. You can time your online money transfer during these periods. Apart from this factor, if you are planning to make an online transfer on a monthly basis, opt for midweek days such as a Tuesday or a Wednesday as this is when there is a low transfer period. It is during this time; you will get the best deals as there is low traffic which plenty of money transfer services try to reduce by offering great deals.

Using these tips, you will surely save a significant amount on your money transfers. At the same time, it is important that you read all the fine print on the terms and conditions before you apply for it.

What are the options for the best way to send money to India?

Plenty of individuals who have settled abroad, look for ways and means to send funds back home. While traditional options such as wire transfer have been a popular option for several individuals, online money transfers are slowly taking over. However, bank drafts may still seem the best way to send money to India, especially on a regular basis. But with so many options and each factor to consider, how do you to for the best option? Given below are the various options available in the market and how they can benefit your requirements.

ACH transfer:

Automated Clearing House, also known as ACH, is an electronic fund transfer system, which is used in the US. It is governed by the National Automated Clearing House Association’s operating rules, which also regulates clearances of electronic payments and transactions within participating financial institutions. Through this mode of transfer, the recipient can pick the transferred amount within four working days. This is the ideal option for those who want to save time and funds.

Online transfer:

Online transfer is slowly becoming one of the best ways to send money to India. All that is required is an internet connection along with the use of the local banking services to transfer money to any account within India. In addition to this, you will also need access to information that includes the name and address of the account holder, or recipient. You will also require information about the financial institution the money is being transferred to. Additionally, you may also need the IBAN or SWIFT Code of the recipient bank. If you make regular transfers, this is best option to consider.

Wire transfer:

As previously mentioned, the wire transfer option has been one of the most popular choices of fund transferring, especially for international transfers. The sender will be required to go through a financial institution in order to send funds to the receiver. The wire transfer collects information about the recipient and the recipient’s bank or facility.  Once the required information has been acquired, the sender’s financial institution will proceed with the wire transfer.

PayPal

PayPal is one of the many services that allows individuals to transfer money electronically, from one account to another. Normally, it is free for the sender; a fee is charged to the recipient. Additionally, the exchange rate of transfer is different for local transfers as compared to international transfers.

Bank Drafts and Cashier’s Checks

Bank drafts and cashier checks are accessible at any bank or financial institute. However, there is a fee associated with these services. Additionally, it will take time for the checks to be cashed in India. You will also need to pay more for the purchase of bank drafts as compared to money orders. One advantage of this money transfer is that it can be traced in the event it does not reach its destination.

Factors to consider when sending money to India from the USA

Plenty of Indians have settled in the USA for better career options as well as a better lifestyle. At the same time, these individuals send funds back home, for various reasons ranging from families to repaying a property purchase back home.

However, with so many options available in the market, how can an individual choose one that will suit his needs? Given below are a few features you can consider when opting for an option to send money to India from the USA.

Exchange rates:
This is one of the most important and first feature you will need to consider when comparing options to send money back home. While this exchange rate will not be fixed on a daily basis, the variations offered between the rates is often similar. However, you must keep in mind, while the exchange rates may be beneficial, you may need to pay higher transfer fees.

Transfer fee:

Each transfer company will offer their transfer fees. Therefore, it is crucial that you review the fees before you apply for the transfer or even proceed with the transaction. Look for companies that offer you transfer fees that match your requirements. At times, some companies also waive the fees if you transfer more than the minimum amount.

Transfer method:

There are plenty of companies that offer traditional means of transfer, such as a demand draft, wire transfer or even through cheques. Alternatively, some companies also offer digital transfers through emails. Some companies also allow you to make the transfer through the means of a single phone call or a message. You will also need to compare payment options available, such as bank deposit, debit or credit card.

Transfer time:

Each company will offer you different time durations when making a transfer. This is a crucial factor to consider, especially when you want to send an emergency fund to your destination company. Additionally, to reduce the duration of the time taken for the transfer, you may need to pay a premium. Alternatively, some companies only specialize in quick services.

Pick up methods:
As a sender, you will need to consider options that will provide you the means to send money to India. However, at the same time, you will need to consider how the receiver will have access to the funds. Will the funds be transferred directly to the recipient’s account or can does the receiver need to pick up the funds from a fixed location?

Transfer options:

At the time, you will want to make a flexible transfer. This includes the ability to lodge contracts forward, place orders in the financial market or even schedule payments in advance. You can look for options that offer you this flexibility.

What are the best investment options available for NRI’s today?

Plenty of individuals have traveled abroad for various purposes such as earning in a foreign currency, change in job location or even migration purposes. Some individuals also travel abroad to study and end up applying for a job with the same country.

No matter the reason, plenty of these individuals still wish to invest in opportunities, back in their home country of India. Supporting this decision is the government regulations that provide the legal framework along with the value of the falling rupee. Along with this, there are plenty of options to consider when it comes to investing. Here are a few options for NRI investment in India you can consider:

Bank Fixed Deposit:This is one of the most popular choices amongst NRI who wish to invest. Not only does plenty of banks offer this opportunity to NRI’s, but you will also have the option to invest in the local currency or the foreign currency. Normally, banks provide attractively, and high rates on NRI fixed deposits, making in the best option for high returns. With this option, you can opt for NRE deposit, NRO deposit or even the FCNR account.

Mutual funds: Mutual funds is another option that can be taken into consideration for anNRI investment in India. This is extremely beneficial to those who already hold any of the three NRI bank accounts, namely the NRE, NRO or FCNR account.  However, the investment in this option must be made in foreign currency. Additionally, the investment amount can be directly debited from the NRE or NRO account.

Direct Equity: Under the portfolio investment scheme of RBI, NRI’s can invest directly in the stock market. Under this regulation, the maximum investment that cannot go beyond 10% of the paid-up capital of the company. In this case, in addition to the NRI account, a demat account, and brokerage must also be opened. All transactions must be made through the stock broker only. Additionally, NRI’s do not have the permission to trade during the day or short sell within India.

Real estate sector: If NRI fixed deposits have been a popular option for NRI’s, the real estate sector has been a traditional option. Plenty of Indians may leave home and settle abroad, but a property back home will always consider as a prized possession. This NRI investment in India also has an added advantage, as property prices often appreciate, providing the ideal form of emotional security. All in all, the real estate sector is considered as one of the most lucrative investment options for NRI’s.

Apart from these options, there are plenty more to consider. However, you must first check the regulations and conditions of your resident country when it comes to investing these options in your home country.