NRI Account – Types and Benefits

A Non-Resident Indian or NRI is an individual who has been residing in a foreign country for more than 120 days in a year. Also, an individual who lives in a different country for employment purposes is an NRI. However, there are some NRIs who want to have their bank accounts in India. How do they do it? Well, they can open an NRI account. Let us read on to know it!

What is an NRI Account?

The bank accounts that are opened by an NRI or a Person of Indian Origin (PIO) are called NRI accounts. An NRI account in India has to be opened with a bank that is authorized by the Reserved Bank of India. Other than banks, these accounts can also be opened with other financial institutions. The money deposited by the NRIs in these accounts can either be originated from India or any other country.

Also Read: Health Insurance for NRI

Eligibility Criteria for Opening an NRI Account

To open an NRI account, one has to follow some eligibility criteria, which include the below-mentioned:

• The individual must be employed or owns a business in a foreign country
• Government employees who have diplomat passports
• Students who pursue education in foreign countries
• A serviceman employed with the Indian Navy, airlines that are registered with a foreign country, foreign shipping companies, oil rigs, etc.

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Documents needed for Opening an NRI Account

If an NRI wants to open an account in a bank or any financial institution in India, he/she has to submit certain documents. The NRI account opening documents include:

• An application form
• Proof of employment
• Photocopies of passport, each page
• Visa permit, work permit, student permit, Residence Visa, or Employment Visa
• KYC documents.

The documents may vary as per the financial institution.

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Benefits of Opening an NRI Account in India

As the advantages of opening an NRI account in India are concerned, here are some of them mentioned below:

1. A good investment plan for NRI

NRIs who are staying away from India but want to make their investment portfolio more diverse can invest in an NRI account. An NRI account helps buy or sell stocks, mutual funds, and other assets.

2. The minimum balance is low

In an NRI account, the minimum balance that has to be maintained is quite low, which is INR 10,000. Therefore, one does not have to be bothered about maintaining a high balance in the account.

3. More than one currency is deposited

One of the benefits of an NRI account is that the NRIs can deposit funds in this type of account and the currency can be of the country in which they are residing. This can be done through FCNR deposits.

4. Tax benefits

NRIs who open an NRE or FCNR account get to earn extra income in the form of interest. And this additional income is totally tax-free. However, the interest earned from NRO accounts is taxable.

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Types of NRI Accounts

There are several types of NRI accounts. Some of them include:

• Non-Resident Ordinary (NRO) Savings Account/ Fixed Deposit Account
• Non-Resident External (NRE) Savings Account/ Fixed Deposit Account
• Foreign Currency Non-Resident (FCNR) Fixed Deposit Account

Banks offering NRI Accounts

There are quite many banks in India that offer NRI accounts. Here are some of them mentioned below:

• Axis Bank
• SBI Bank
• Kotak Mahindra Bank
• ICICI Bank
• HDFC Bank
• Standard Chartered
• Deutsche Bank
• Bank of Baroda
• Citi Bank
• RBL Bank
• YES Bank

Now, all that you need to do is to choose the right financial institution in which you can open an NRI account. And while you try to open an NRI account, you must ensure of checking the terms and conditions first.

Related Articles:

• NRI Insurance Plans: Policies and Features
• Difference Between NRI and NRE
• Best Investment Plan

 

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