How to open an NRO savings account?

 NRIs (Non-Resident Indians) who want to keep their India based earnings in India, usually hold either NRE or NRO savings accounts. These are fairly popular deposit options exclusively available to them which give them a good rate of return and place their funds in India.

An NRO savings account is a Non-Resident Ordinary Rupee Account, usually opened by an NRI to manage the income in any form (like rent, pension or other types of dividends) that is earned in India. Hence, such an account helps them in two ways: they can send their earned money to India from the resident country, and retain their income earned through other assets in India.

How to open an NRO savings account

The candidate (here, NRI) has got two options to open his NRO savings account:

  • He/she can either convert his/her existing resident account in India to NRO account,
  • Or he/she can open a new NRO account. These options would require the candidate to submit the documentary proof of being a non-resident account holder in India.

Required Documents

documents required to open an nro savings account
  • In case of the first option, i.e. conversion of existing resident account to NRO savings account, the candidate would require to fill a form and get it signed by all account holders. The document required would be proofs of- identity, NRI status, foreign address and two photographs.
  • In case the second option, i.e. opening a new NRO savings account, same KYC documents would need to be submitted along with duly filled new account opening form.

A point to note is that the proof of foreign address can be presented in four forms, either employment detail, or student status, or dependent visa status, or a copy of the resident permit in the overseas destination. Before submitting, the candidate would need to get these proofs attested by either the Indian embassy or notary or branch of an Indian bank also having its branch overseas.

Transaction proof

transaction proof for nro savings account

It is a mandatory step for banks, so the candidates can provide proof of their financial transactions abroad. It can either be in the form of a cheque drawn on an overseas account or a credit card statement not more than six months old.

Opening NRO savings account

In case of conversion of existing resident account to NRO account, the existing savings account will only be converted to an NRO account once the documents are received and verified by the bank. However, the bank might charge some amount for this conversion.

Just like other accounts, new NRO savings account open shortly after the bank receives all the documents along with the initial amount.

Additional information

  • An NRI can open his/her NRO account jointly either with a resident or a non-resident. and in the form of savings, current or FD account.
  • The documents have to be get attested by the manager in case the signatures don’t match with the passport.
  • The NRIs can receive funds in Indian or Foreign currency, as they please.
  • RBI permits repatriation of funds from NRO savings accounts, although subject to certain limits.

Comments

Post a Comment

Popular posts from this blog

Why is India a Good Destination for Investment

Image
India continues to be an attractive destination for the investors, and form a huge part of the world’s fastest-growing economies. Indian residents and Non-Resident Indians(NRIs) are actively looking to earn money by Investing in India. Also, if the investments are made by NRIs then it is treated as ‘foreign investments’ as per the Indian foreign exchange regulations, making India one of the top recipients of  foreign remittances   from its diaspora. Here are some reason why India is a good place for investment:- Indian economy is one of the world's fastest-growing economies According to the Department of Promotion of Industry and Internal Trade, India has crossed the $70 Bn mark in the Fiscal Year 2019-20 and recorded a total FDI inflow of $73.45 Bn, ranking amongst the top countries for investments by leading investors. Indian infrastructure story More than $1.5 trillion investments have been planned for Indian infrastructure for the next two decades across the key government...
Read more

All you need to know about an FCNR Account.

Image
  Providing NRIs with lucrative returns without much hassle was the main objective with which the FCNR account was first introduced. This primary objective still holds.  What is an FCNR Account? FCNR stands for Foreign Currency Non-Resident Account. It is a term deposit account popularly known as an FCNR deposit . These fixed deposit accounts are opened for depositing foreign currency income earned overseas. The account is maintained in the same foreign currency as deposited.  NRIs (Non-Resident Indians) and PIOs (Person of Indian Origin) are eligible to open an FCNR account with an authorized bank or dealer.   FCNR account is more beneficial to those NRIs who are sure to repatriate their funds from the account on maturity. Also, FCNR deposits are a good option for NRIs who are looking for a secure hassle-free fund deposit option in India. You can book your FCNR Account in  US Dollars Canadian Dollars Australian Dollars Pound Sterling Swiss Franc Euro Japan...
Read more

What are the benefits of opening an NRI account?

Image
NRI account s can be opened by Non-Resident Indian who reside outside the geographic territory of India. This account facilitates account holders to manage transactions in the currency of their country of residence. There are types of NRI saving account one can opt to open: NRE Account NRO Account NRE Account: NRE (Non-Resident External) account is accessible to deposit overseas savings as rupee dominated. It is an account opened in India in the name of NRI. One can open a joint account between two Non-Resident Indians or a Person of Indian Origin with the SBM NRE savings account . Benefits of NRE account: Interest 6% p.a. with monthly payout of interest Tax-free returns Fully repatriable Competitive forex rates Dedicated Relationship manager Preferential pricing on a host of products and service Premium privileges with Personal concierge NRO Account: NRO (Non-Resident Ordinary Rupee) is an account opened in India by the name of NRI to manage the income earned in India. That earning c...
Read more