Things to know about NRI Bank account | Fusion - WeRIndia

NRIs living abroad often find the need to conduct financial transactions in India, and that’s where an NRI savings account comes to their aid.

This special bank account is designed for Non-Resident Indians (NRIs). It allows them to make deposits, receive income, and carry out payments conveniently in India.

There are two main types of NRI savings accounts: the Non-Resident Ordinary (NRO) Account and the Non-Resident External (NRE) Account.

The NRO account is maintained in Indian currency and the interest earned is subject to TDS.

While the account balance can be repatriated up to 1 million per financial year, there are certain restrictions involved.

On the other hand, the NRE account is also maintained in Indian currency, and both the principal and the interest earned are fully repatriable. Moreover, the interest income from the NRE account is exempt from taxes in India.

Opening an NRI savings account brings forth numerous benefits:

• Firstly, it facilitates easy transactions, allowing NRIs to receive their income from India, make payments, and even remit funds from abroad with ease.
• Additionally, these accounts offer guaranteed interest income on the account balance. If the right bank is chosen, attractive interest can be earned, with interest credited monthly for compounded returns.
• One of the significant advantages of the NRE account is the tax exemption on the interest income in India, and it also does not attract TDS.
• Furthermore, both the NRO and NRE accounts provide the convenience of repatriation, allowing the transfer of funds abroad.
• While the NRO account has some restrictions on repatriation, the NRE account allows limit-free repatriation.
• In addition to these benefits, NRI savings accounts often come with debit card facilities, enabling digital and cashless transactions.
• These debit cards offer not only transactional convenience but also provide additional benefits to the account holders.

Opening an NRI savings account has been made simple with online procedures offered by most banks today.

NRIs can easily fulfil the eligibility criteria and submit the required documents. They can fill out the online NRI account opening form and submit it electronically.

The bank will then process the application and conduct the necessary verifications. Then it will open the account for the NRI, all these things will happen in a hassle-free manner.

NRI savings accounts are a boon for NRIs, providing them with a seamless way to manage their finances in India while residing abroad.

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