Why do we need NRI Bank Account? How do I open it?

As per FEMA, a Non-Resident Indian (NRI) cannot operate and maintain a resident savings account. Hence as soon as an individual becomes an NRI, the existing resident bank account should be either closed or converted to NRO Bank Account. Moreover, when a resident Indian person moves abroad and becomes an NRI, the easiest and efficient way to access and use the money and investments already made in India, is to convert the savings bank account with the Indian bank into an NRO bank account.

The NRO accounts can receive foreign remittances (money transfers from aboard to India), can have a joint holder who is a resident Indian, and RBI also permits repatriations abroad limited by a maximum annual amount.

An NRI Bank account can be either opened online or offline by approaching your bank requesting them for conversion for an existing resident bank account or to open a new NRI Bank account. To open any non-resident account in an Indian bank, it is important to provide proof that the account holder is now a non-resident as defined in the Indian tax laws.

The conversion of a resident account into a non-resident account requires submitting identity proof, NRI status proof, proof of foreign address, and two photographs. The applicant has to provide proof of residence abroad in the form of employment details, student status, dependent visa status, or a copy of the resident permit in the overseas destination. This proof has to be attested by the Indian embassy, notary, or an Indian bank with an overseas branch. If the applicant wants to mention a local Indian address for ease of operation, in addition to an overseas address, proof of such an address should also be provided with attestations.