As a Non-Resident Indian, one might wonder how to deposit and save foreign currency in Indian denomination. The answer is an NRI account in an Indian Bank. An NRI account makes it convenient to not just manage the hard-earned money in Indian denominations but also to fulfill the financial needs of their family back in India. NRI accounts prove to be useful for individuals who have newly acquired the NRI status as well as the non-resident Indians who are moving back to India. Click here to reap the benefits that are meticulously designed to fit the NRI needs

Manage hard-earned money from anywhere around the world with NRI bank accounts. Image Source:

Before deep-diving into the list of documents needed to create an NRI account, let’s understand the two main types of NRI accounts – the Non-Resident External (NRE) Account and the Non-Resident Ordinary (NRO) account. Even though both these accounts are Indian rupee-denominated accounts, their purpose and benefits vary drastically.

NRE Account & its benefits:

  • Individuals who wish to send their foreign earnings to India would highly benefit from the NRE account.
  • NRE can be opened as a joint account with a Resident Indian or even another Non-Resident Indian.
  • Available in savings, fixed and recurring deposits, the NRE account offers high liquidity and stress-free benefits from investment in India.
  • For all the people who worry about tax, the principal amount stored in an NRE account and the interest earned on it are exempt from tax in India.
  • This advantage makes the NRE account a great method to invest the strenuously earned wealth in fixed deposits and stocks to earn higher returns.
  • Not only does it make investments fruitful but also meeting the financial obligations of the family back home becomes a hassle-free task. Household expenses, rent, EMIs, paying tuition fees of your loved ones, or saving for retirement, every such need seems easy to tackle with this tax-free account.
  • Another great advantage of this account is that the principal amount and the interest earned can be repatriated from India to the resident country of the account holder without any restrictions

NRO Account & its benefits:

  • NRO accounts are designed specifically for individuals who have a source of income in India and wish to deposit it in India itself. For example, the earnings arising from rent, dividends, and more can be deposited in NRO accounts without any worry.
  • However, unlike NRE accounts, the interest earned on the principal amount in this account is applicable for tax. In order to reap the benefits of lower tax rates, NRIs need to submit the Tax Residency Certificate issued by Tax Authorities of the resident’s country as per the double taxation avoidance agreement (DTAA) introduced in India
  • More so, the amount of money that can be repatriated i.e. transferred varies for NRO accounts. The remittance of income from India to outside India is allowed for bona fide reasons post the deduction of applicable taxes.
  • However, up to one million USD per financial year is allowed to be transferred which is again subject to the satisfaction of Authorised Dealer banks.
  • Similar to NRE, Indian denominated NRO accounts can be created as a joint account with Resident Indians and Non-Resident Indians. The Resident Indian can be a close relative who can be added on ‘Former or Survivor’ basis only.

The similarity between NRE and NRO accounts

The average investment term and monthly balance that should be maintained in both NRE and NRO accounts vary from one bank to another.

In the case of both the accounts, the nomination facility allows a nominee to be appointed who is entitled to handle the account in the event of the account holder’s death.

Tick the basic documents off the checklist to create an NRI account with ease. Image Source:

Documents to be prepared well in advance for opening an NRI account in India

After understanding the various types of accounts and deciding the one which is apt, the document list can be prepared with ease. Like all accounts, here’s a list of the few basic documents that are required to open an NRI account:

  • Proof of Identity – Photocopy of valid passport (self-attested)
  • Proof of Identity – Copy of Pan Card (Mandatory for NRE PIS/ NRO PIS accounts – self-attested)
  • Proof of NRI status – Copy of valid visa/work permit (self-attested)
  • Proof of Residence – Address on the document should be the same as the address mentioned in the application form.

Along with these documents, a photograph and an initial payment cheque/draft in the name of the bank should also be provided.

If all these documents are ready and good to go, then the benefits of an NRI account awaits you!