Browsing: NRO

NRI Guides
Why and how you should convert Savings Account to NRO Account

When a person becomes a Non Resident Indian (NRI), he is required to either close his existing savings account, or convert it to a Non­ Resident (Ordinary) or NRO account. Most individuals make a mistake of continuing a resident savings account even after becoming a NRI but the law does not allow it. As per FEMA regulation, when a resident’s status changes to NRI the resident savings account have to be converted to a NRO account. Or in simple words it’s illegal to hold savings bank account for NRIs. It is not possible to convert a resident savings account to NRE account as the fund source for NRE account has to be remitted from abroad. NRO accounts can be opened with funds either remitted from abroad or generated in India. Features of NRO account These are just like a savings accounts, with certain restrictions on repatriation of proceeds to the…

NRI Guides
Returning to India? Here’s how to manage your bank account

The changing global scenario has seen many Indians returning to the country. This amounts to change of status from Non-Resident Indian (NRI) to Resident Indian as far as money matters are concerned. NRE/ NRO/ FCNR account When an NRI comes back to India and becomes a Resident Indian, he is required to inform his bank about the change of status. The NRE and NRO accounts that he holds will have to be redesignated to resident savings account. RFC account One also has the option to convert an existing NRE account to a Resident Foreign Currency (RFC) account, where one can maintain funds in foreign currency and the funds (principal + interest) are fully repatriable. The RFC account allows credits from overseas in foreign currency from sale of assets outside India or income received outside India (in the form of employment, assets, investments) as the case may be. Redesignation of account…

NRI Guides
Guide: How to add a joint holder to a NRE/NRO account

Non-resident Indians are allowed to open Non-Resident (External) and Non-Resident (Ordinary) accounts, as well as FCNR deposits with banks. The repatriation rules for each of these is different. While NRE accounts are freely repatriable, NRO account are conditionally so. When opening an NRE account, the NRI can add a non-resident joint holder to the account. Here’s how. Form A joint applicant inclusion request form needs to be obtained from the branch or downloaded from the bank website. Joint holder details, customer ID (if he already holds an account with the bank), account operating instructions (jointly, either or survivor, anyone or survivor) must be indicated on the form. Documents Self attested copies of the following documents need to be enclosed: Passport Visa/OCI/PIO card/Resident permit Overseas address proof Initial paycheque of any amount from the joint applicant’s overseas account. If the joint applicant is unable to provide the paycheque, the passport and…