NRI Banking in India#
Types of NRI Accounts#
1. NRE Account (Non-Resident External)
- Indian rupee account
- Repatriable funds
- Tax-free interest
- Can open with foreign funds
2. NRO Account (Non-Resident Ordinary)
- Indian rupee account
- Non-repatriable
- Taxable interest
- For Indian income
3. FCNR (B) Account (Foreign Currency Non-Resident)
- Foreign currency account
- USD, GBP, EUR, etc.
- Repatriable
- No exchange rate risk
RBI Guidelines#
- Maximum 10 NRE/NRO accounts
- FCNR allowed in 9 currencies
- Transfer between NRE accounts allowed
- NRO to NRE with permission
Documents Required#
- Passport
- Visa/OVerseas Citizen of India (OCI) card
- PIO card (if applicable)
- Address proof
- Photographs
Operations#
- Can be operated by POA holder
- Nomination facility available
- Auto-renewal of FCNR deposits
- Convertible to resident account on return
Tax Implications#
- NRE interest: Tax-free
- NRO interest: Taxable
- FCNR interest: Tax-free
- Gift to NRE: Not taxable