How To Open NRI/NRE/NRO Bank Account in India
NRI means Non Resident Indian. NRE (Non Resident External) and NRO (Non Resident Ordinary) are the two kinds of accounts that NRI’s can open when they need a means to transfer money or make any kind of investment in India.
According to definition, an Indian who has lived outside India for 180 days or more during the previous year is an NRI or a Non Resident Indian. The term NRI only signifies your residency status and not any type of account. Only an NRI is allowed to open an NRE or NRO account.
NRE or NRO account?
NRE is the kind of account where the amount that is kept in rupees can be converted back into foreign currency. However, in NRO accounts, the money cannot be changed back to foreign currency. This is the major difference between these kinds of accounts.
Another major difference between NRE and NRO accounts is that interests earned on the money in your NRO account is taxable. However, the money in your NRE account is totally tax-free.
There are so many questions that you will have when you want to open your NRE/NRO account and here are the answers to few of them.
- You cannot remit Indian rupees into your NRE account.
- Once you withdraw cash from this kind of account, it cannot be credited back as the money withdrawal from here is drawn as Indian rupees.
- You can transfer money from one NRE account to another NRE account.
- Joint NRE accounts are allowed with a resident Indian who is very close to you, for example your wife or parents.
- An NRE account has to be changed to a resident account as soon as you return. You must otherwise transfer the money to a Resident Foreign Currency (RFC) account once you return.
NRO Account requirements:
- When you want to make local fund remittances, you can use an NRO account.
- This is mainly used for money remittances that the NRI could be getting from his investments in India. For example, rent for your house in India, interests from your banks and so on.
- You can easily transfer money from your NRE account to NRO account, but it is impossible to do the vice versa.
- After you have transferred money from your NRE to NRO account, then that money becomes non-transferable back to the NRE account.
- An NRO account has to be changed to a resident account as soon you are back in the country.
If you are looking to open an NRE/NRO account in India, you will need help with the list of documents that are required to open the account
Documents to open NRE/NRO account:
Attested Photocopies of:
- Passport: First and last four pages of the passport are usually sufficient. You have to make sure it includes the pages, which has the details of your name, address, date of birth, place of birth, photograph signature and the expiry date of the passport.
- Work permit Visa: In case, your visa has expired, you have to make sure that you have copies of the approved visa renewal requests.
- Address Proof: The list of documents that will be accepted for address proof in banks is as follows.
Overseas Address (Photocopy of any one of the following)
- Valid passport with the overseas address
- Any utility bill paid in the country of residence, not older than 3 months
- A bank statement not of your account with an overseas bank, not older than 3 months
- Address proof of the sponsor. Also include proof of relationship of the primary applicant with the sponsor
- Valid driving license in the country
- A rent receipt, which is not more than 3 months old
- Any Government issued ID Card
- Credit card bill not more than 3 months old
- Valid company ID card with address
- Original consent letter on its letterhead, issued by the company stating the purpose of account opening
- Bank statement or passbook of your NRI account with another bank
- PIO/OCI Card
Indian Address (Photocopy of any one of the following)
- Valid passport that includes Indian address
- Permanent and valid driving license
- Telephone bill (of public or private operators) not older than 2 months
- Electricity bill not older than 2 months before date of opening account
- Bank pass book
- Bank account statement of not before 3 months preceding to account opening date
- Ration card
- Voter’s ID card
- Rental agreements stamped properly
- Senior citizen’s card from Indian Airlines or Indian Railways
- Postpaid mobile bill
- Authorized recommendation letter from a recognized public officer
Other documents required:
- A cheque drawn on your bank account abroad
- Any cancelled original paid cheque drawn from a bank abroad, which shows details like signature, bank name, account number and so on.
- For NRI students, an authorized letter from your university abroad.
How to open an NRE/NRO account?
- Use the bank helpline number to let them know you want to open an account with them.
- The bank rep will meet you and help you with the daunting task of filling the form.
- Keep all documents and a couple of passport size photographs ready.
- Keep a written cheque ready to deposit money into your new account.
The procedures are different with every bank. However, the basics remain the same. To make things easier for you, here is a list of the NRI sites for major banks in India.
State Bank of India: http://www.sbp.co.in/nri-services/open_nri.pdf
State Bank of Bikaner & Jaipur: http://www.sbbjbank.com/faq/NRI.htm
State Bank of Travancore: http://www.statebankoftravancore.com/nriopen.htm
Allahabad Bank: http://www.allahabadbank.com/nri_account-open.pdf
Bank of Baroda: http://www.bankofbaroda.com/int/nri.asp
Bank of India: http://www.bankofindia.com/nri.aspx
Bank of Maharashtra: http://www.bankofmaharashtra.in/nri_services_nro.asp
Canara Bank: http://canarabank.com/English/scripts/NRIBanking.aspx
Central Bank of India: http://www.centralbankofindia.co.in/site/MainSite.aspx?status=2&menu_id=91
Corporation Bank: http://www.corpbank.com/applicationforms/AOFNRI11%20310709.pdf
Dena Bank: http://www.denabank.com/viewsection.jsp?lang=0&id=0,331,6,335
IDBI Bank: http://www.idbi.com/nriservice_instaonlineaccount.asp
Indian Bank: http://www.indianbank.in/deposits.php?by=57&ty=2
Indian Overseas Bank: http://www.iob.in/uploads/nri-ac-op-form.pdf
Punjab National Bank: https://www.pnbindia.in/new/Upload/En/NRE%20AOF.pdf
Punjab and Sind Bank: https://www.psbindia.com/nriform.pdf
Syndicate Bank: http://www.syndicatebank.in/scripts/nriservices.aspx
Uco Bank: www.ucobank.com/nri-deposit-account-opening.doc
Union Bank of India: http://www.unionbankofindia.co.in/NRI_deposits.aspx
Vijaya Bank: http://vijayabank.com/vijaya/vijaya/internet-en/menus/nri-services/deposits/nre.html
Federal Bank: http://www.federalbank.co.in/General_AboutUs_1ttt.aspx
Dhanlaxmi Bank: http://www.dhanbank.com/pdf/PAForm-NRI.pdf
Catholic Syrian Bank: http://www.csb.co.in/asp/0100text.asp?pageId=276&headId=16
Karur Vysya Bank: http://www.kvb.co.in/nri/nre.html
South Indian Bank: http://www.southindianbank.com/forms/formslist.aspx
Axis Bank: http://www.axisbank.com/download/NRI-Ac-OpeningForm.pdf
HDFC Bank: https://leads.hdfcbank.com/applications/webforms/apply/nri_opening_form.asp
ICICI Bank: http://www.icicibank.com/nri-banking/RHStemp/documents_form.html#
IndusInd Bank: http://www.indusind.com/indusind/wcms/en/home/nri-banking/index.html
ING Vysya Bank: http://www.ingvysyabank.com/scripts/nribanking.aspx
Kotak Mahindra Bank: http://nri.kotak.com/accounts-deposits