NRI Bank Accounts Simplied

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NRI Bank Accounts Simplied​

The types of NRI bank accounts that are available include the Non-Resident Ordinary Account (NRO), the Non-Resident External Account (NRE), and the Foreign Currency Non-Resident Account (FCNR). Additionally, both the NRO and NRE accounts offer both savings and fixed deposit options, while the FCNR account only offers fixed deposits.​

Bank Account Types for Non-Resident Indians​

In this section, we’ll take a closer look at each of the three types of NRI accounts to help you decide which option is best for your needs.

But first, it’s important to consider what exactly an NRI account is.

The three accounts referenced above (NRO, NRE, FCNR) are available from a number of financial institutions operating in India, including both domestic and international banks. As always, the specific benefits offered by each bank vary, as do the account opening requirements. So, it’s important to carefully consider all of the variables before deciding which bank is best for your needs.

Now, let’s take a closer look at the specific accounts available:

NRI Savings Account​

Non-resident Indians can choose from either an NRO or NRE savings account.

NRO Savings Account​

NRO savings accounts refer to either a rupee or foreign currency savings account that can be opened by non-residents in India. The NRO account limits the amount that an account holder can withdraw and repatriate away from India to a maximum of USD 1mm per financial year.

NRE Savings Account​

NRE savings accounts refer to rupee-denominated savings accounts that can be opened by non-resident Indians in India. The interest earned on these accounts is generally considered tax-free. Uniquely, there is no limit on the amount that can be deposited in an NRE savings account each year.

Fixed Deposit Account​

Non-resident Indians can choose from either an NRO, NRE, or FCNR fixed deposit account.

NRO Fixed Deposit Account​

NRO fixed deposit accounts do not allow for repatriation, instead only the earned interest can be repatriated whenever the account holder decides to close the account.

NRE Fixed Deposit Account​

NRE fixed deposit accounts allow account holders to repatriate both the principal and the earned interest whenever they wish to close the account.

FCNR Fixed Deposit Account​

Not surprisingly, an FCNR fixed deposit account allows the account holder to hold foreign currency earned abroad in an interest-bearing account in India.