Some bank accounts a NRI can open here
Anon-resident Indian (NRI) means a person who is not a resident in India. Under the Foreign Exchange Management Act (FEMA), a person 'resident in India' includes a person residing here for more than 182 days during the course of the preceding financial year.
A NRI is a person who has gone abroad or who stays abroad on employment, to carry on a business, or for any other purpose for an uncertain period. A NRI is a citizen of India or a person of Indian origin (PIO). A PIO is a citizen of any country who has held an Indian passport, either of his parents or grandparents was a citizen of India, or the person is a spouse of an Indian citizen.
Those who have gone abroad for medical treatment or holiday continue to maintain their resident status.
NRIs have the option to maintain accounts not only in rupees but also in foreign currencies with authorised dealers. There are various types of accounts that can be opened and operated in India.
Non-resident external rupee account
This account can be in the form of savings, current, recurring or fixed deposits. In case of a non-resident external rupee account (NRE), the funds are easily repatriable. The account holder is permitted without any restrictions to send money outside India from this account.
One can hold this account jointly with another NRI. One can also grant a power of attorney to residents to operate this account.
Non-resident non-repatriable rupee deposit account
A non-resident non-repatriable rupee deposit account (NRNR) can be opened by transferring foreign currency funds from abroad, or from other NRE or foreign currency nonresident account (FCNR) accounts. Renewable deposits for a period of six months to three years can be opened. The money is non-repatriable .This account can be jointly held with a resident.
Resident foreign currency account
A resident foreign currency account (RFC) can be opened and maintained by any resident. A RFC account can be opened out of foreign exchange received as pension, any superannuation, or other monetary benefits from an employer outside India. It can be opened with money realised on conversion of assets owned by him when he was a nonresident, with money received, or funds acquired as gift or inheritance from a person resident outside India.
Non-resident (ordinary) rupee account
A non-resident (ordinary) rupee account (NRO) can be opened with funds either remitted from abroad or generated in India. If one earns rent, dividends, or other forms of income in India, he can open this account to credit the proceeds. It is a non-repatriable account.
This account can be in the form of savings, current or term deposits. The account can be opened jointly with any close relative in India.
Foreign currency non-resident account
This account can be opened with funds remitted from outside India, or by transfer of funds from existing FCNR or NRE accounts. A foreign currency non-resident account (FCNR) can be opened by NRIs as term deposits in US dollars, sterling pounds, deutsche marks or Japanese yen. Remittances received in rupees to open a NRE or FCNR account will be converted into the designated foreign currencies at the prevailing rate.
In order to prove a NRI status, the account holder needs to produce his passport with a valid visa, stamping of date of entry and exit from India on the passport, proof of overseas employment and signed photograph.
