Variety of Bank Accounts for an NRI

You can get the freedom of bank account wherever you are in the world. If you are an NRI, you need to choose the right bank that is appropriate according to your needs and that is authorized under the Reserve Bank of India. You can get lots of information to complete the application online and can select the type of bank based on your financial situation and the country where you live in.

The following are the types of Bank accounts for NRIs:

1. Ordinary Non-Resident Rupee (NRO) Account:

NRO account is an account for exchange in rupees and does not need any sanction and is also for suitable for current, recurring, savings, and fixed deposited accounts. It can be a joint account with any resident of India and if you plan to return to India permanently, this account can be changed into a resident account. In this account, 30% tax is levied on the interest earned and that includes education concession and surcharge. With an NRO account, you can also make nominations. This account can be used by an NRI to pay any expense or bill in India.

2. Non-Resident (External) Rupee Accounts(NRE A/C)

Without any sanction an NRE account can be opened if the funds are shifted in exchangeable foreign currency. You can open the account jointly with another NRI but you cannot do so, with another resident Indian. The accounts hold the balances and the earnings from the account may be subject to income tax. This account is not able to hold the repatriated account and the interest that is stored in the account. Without permission of RBI the balances cannot be transmitted abroad. Usually the local funds are deposited in this account and their incomes. Although you won't have to face any trouble if you wish to transfer money to India from foreign, you would not be allowed to deposit Indian currency into this account.

3. Foreign Currency(Non Resident) Account (FCNR A/C)

This account depends on the deposit and the deposit is allowed not for below six months and for not more than three years. The transmission from foreign must be made in the foreign.

4. Non Resident (Non Repatriable) Rupee Deposit Scheme-NR-NR-RD Scheme:

In this account the balances of an NRI cannot be resent abroad but his interest is permitted to be resent and maintained in Indian rupees.

For those who return after continuously staying abroad for at least one year, they can maintain this account. All their earnings can be deposited from abroad. Furthermore they can deposit their pension. The dividend, benefit of securities and shares in foreign currency, etc can all be deposited in their account.

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