Bank Accounts for NRIs

NRI Taxation / Bank Accounts for NRIs


Bank Accounts for NRIs

Any individual residing outside of India has the option to establish an NRO (Non-Resident Ordinary Rupee) account with an authorized dealer or an authorized bank. The primary purpose of this account is to facilitate legitimate transactions in Indian rupees. NRO accounts are available in various forms, including current accounts, savings accounts, recurring deposit accounts, and fixed deposit accounts.

NRE (Non-Resident External Rupee) accounts are available as savings, current, recurring, or fixed deposit accounts, with a minimum maturity period of one year. These accounts can only be opened by the NRI account holder and not by someone holding power of attorney on their behalf.

FCNR (Foreign Currency Non-Resident) accounts, specifically FCNR (B) deposit accounts, function much like regular bank fixed deposit accounts. They offer the convenience of nominating a resident Indian as the account’s nominee. Additionally, FCNR (B) accounts can be prematurely closed; however, to earn interest, the deposit must be kept with the bank for a minimum of one year.