4 Simple Steps to Convert a Savings Account into an NRO Savings Account

Posted by Joseph Mathew on January 5th, 2021

The FEMA laws state that once a resident Indian becomes an NRI, he/she can no longer open or operate a regular savings account. To help them with their banking needs in India, there are exclusive NRI bank accounts available. For instance, a Non-Resident Ordinary or NRO bank account is preferred by NRIs who earn income via different sources in India.

While you can always open a new NRO bank account with any bank of your choice, you also have the option to convert your existing savings account into an NRO account. Here are the four steps you should follow to make this conversion-

1. Fill the Account Redesignation Form

You will be required to fill and submit an account conversion or redesignation form for converting your savings account into an NRO account. If you are in India, then you can visit the bank branch in which you have your account and request this redesignation form. Alternatively, some banks also offer this form on their websites.

If you are already in a foreign country, then you will have to send the form along with the required documents to the bank branch in India. If the bank has a foreign branch close to your location, then you can also visit the branch for account conversion.

2. Attach the Required Documents

Apart from the redesignation form, you will also be required to attach a few documents for account conversion. Here is the list of documents you will need-

● Foreign address proof

● Copy of passport

● Copy of work permit or visa

● Copy of PIO/OCI card (if applicable)

Note that if you are already in a foreign country, then you will have to get these documents attested by the Indian embassy before sending them to your bank.

3. Funding Your NRO Account

Many of the banks in India now offer a zero balance savings account. However, NRO accounts generally are not zero-balance accounts. Thus, if you have one such zero balance savings account, then you will also have to fund the new NRO account with at least the minimum required balance.

You can attach a cheque or draft of the amount you want to deposit in your new NRO bank account, along with the redesignation form and relevant documents.

4. Account Redesignation

The bank will verify your redesignation form and documents before approving your request. This can take anywhere between 5-7 working days. If everything is in order, then your regular savings account will be successfully converted into an NRO savings account.

In most cases, your account number will remain the same. But in the bank records, this will now be treated as an NRO bank account.

Converting a Savings Account into an NRO Bank Account

Once your residency status changes to NRI, you will no longer be able to use your regular savings account in India. Rather than closing this account, you can convert it into an NRO bank account for your banking needs in India.

While the account conversion process is more or less the same in every bank, you can visit the official website of your bank to know more about the conversion process.