If you’re a working individual living abroad, you probably have a bank account to deposit, secure, and manage your finances and everyday transactions. But what about when you want to keep these funds in India to make them easily accessible to your family?
Since you cannot operate a regular savings account once you gain an NRI status, you must open an NRI account. A Non-Resident External Account (NRE) lets you save your foreign currency earnings in India and grow your savings at attractive interest rates.
But opening an NRE account comes with certain criteria and paperwork that you need to take care of. What are they? And how does an NRE account work? Let’s find out.
What is an NRE Account?
As an NRI, you can convert your regular savings account to an NRE account to park your foreign currency earnings in the Indian rupee. Here are the features of an NRE account-
- A rupee-dominated account where your foreign currency deposits get converted to INR
- Easy fund transfers between NRE and NRO accounts
- Funds are fully and freely repatriable
- One can open a savings account in the form of savings, current, recurring, or fixed deposit account
- Joint-account holding
- Interest earnings on NRE accounts are tax-free
- Allows easy fund withdrawal in your foreign currency
- Banking convenience with net banking and debit card facilities
- One can also make investments in India with an NRE account
NRE Savings Account Eligibility
Most top banks in India offer excellent banking services to NRIs with NRE and NRO accounts. If you wish to open an NRE account, the standard NRE savings account eligibility criteria are as follows-
- The applicant must be a Non-Resident Indian (NRI), or a Person of Indian Origin (PIO)
- Seafarers of Indian nationality
- Mariners/seafarers of Indian origin employed by international shipping organisations
- Students pursuing higher studies in foreign countries
When you apply for an NRE account, the bank will request a list of documents for verification. This includes-
- Recent passport-size photographs
- A copy of passport with passport and personal details
- A copy of the Permanent Account Number (PAN) or Form 60
- A valid proof of NRI status (Resident permit/ Employment Visa/ Work Permit/ Any other)
- Document proof of overseas or Indian address
- Seafarers must submit a copy of the CDC and employment contract
All these copies must be self-attested along with being attested by an authority.
If you meet the above-mentioned eligibility criteria and have the listed documents, you can download and fill in the application form from your bank’s website. And submit the documents along with the application at your nearest bank branch.
For an NRI with a family in India, it makes great sense to open NRI savings account to manage their foreign earnings and take care of the family’s financial needs. It lets you grow your funds at attractive rates and brings you best-in-class services for easy transactions and fund withdrawals.
So, if you’re an NRI who has recently shifted abroad, get in touch with your preferred bank to convert your normal savings account to an NRE account.