Step-by-Step Guide to Opening an NRI Account in India

Posted by Samantha Kennedy on September 7th, 2017

If you’re a Non-Resident Indian living abroad in any country, then you must consider opening an NRE account back in India. Wondering what’s to be gained by this? Well, for starters, you can save your hard-earned dollars as Indian rupees and earn higher interest rates without the requirement of paying taxes on interest earned if you open NRE Account. Intrigued? Wondering how to do that? In today’s article, you can find a detailed step-by-step guide that will take you through all the processes involved in opening an NRI Account in India.

What’s an NRI or NRE/ NRO account?

Non-resident Indian (NRI) is a status of Individual who stays outside India for more than a period of 6 months for the purpose of employment / education.  Individuals with NRI status have to open a NRE / NRO bank account in India.

NRE Account is a Rupee Account and lets you park your foreign income that you can use to support your family in India or Invest in India. The interest you earn in NRE Account is tax-free in India, and you are free to repatriate money from your NRE Account to your overseas bank account at any point in time.

NRO Account is also a Rupee Account and lets you park your Indian income viz. Rent, dividends, other income. The interest earned in this account is subject to TDS and repatriation of money from NRO Account to your overseas bank account is restricted.

How to open an NRE/ NRO Account in India?

To open a bank account in India, the account holder has to physically visit the nearest branch, fill the forms, submit the required documents i.e. Passport, Visa & Address proof.

Alternately if NRIs are currently abroad, then they can apply for an account online. You can easily open an account from the convenience of your home.

Let’s take a look at the various steps involved in the process.

Step 1: Applying for a free call back from the chosen bank

Before you open an NRI account, you have to decide on your bank. Check around, read reviews, consult your friends and choose a bank that offers you the ease of opening the account if you are currently abroad. Once you have decided on the bank you can arrange for a free call back service from the said bank (if available).

Step 2: Filling the online application form and gathering the required documents

Fill in the online details accurately and gather the documents viz  your passport copy, valid visa, proof of your NRI status, and evidence of address.

Step 3: Dispatching the Documents

The next and final step is to send the completed form and signed copies of verification documents to your bank. Some banks give an option of a free courier pickup of documents from your overseas address. This option is quite convenient and is easy for the new account holder.

Once your documents reach the bank, it’s verified by the officer, and you get an NRI Account number. You can then access your account using the provided login id and password. That’s it; you have completed the process and successfully opened an NRI Account in India.