Benefits of opening an NRE account in India.

 Any Non-Resident Indian who wishes to carry out financial transactions in India needs to open an NRI bank account. Continuing to transact with your regular Indian resident savings account is considered illegal once you attain an NRI status. 

An NRI can open an NRE account or an NRO account. According to his or her needs. 


What is an NRE Account?


NRE, Non-Resident External account is a rupee dominated bank account opened to deposit an NRI’s foreign income in India. This account is available in the form of current, savings, recurring or fixed deposits. 

An NRE account comes with attractive features such as NRE savings account interest rates, minimum required account balance, internet and mobile banking services and much more. 

However, an NRI cannot deposit domestic funds generated in India into his NRE account other than transfers from his NRO account for which separate documentation is required.

An NRI can be held jointly by two eligible NRIs or a resident Indian relative. Account-holders can also mandate a resident Indian relative to manage the NRE account.

Funds in the NRE Accounts are mainly used for personal purposes, carrying out business activities in India or for investment purposes in the Indian markets.


Benefits


  • An NRE savings account helps you park your income earned outside in Indian currency.


  • Unrestricted repatriation of both principal and interest amounts is permitted for your NRE savings account. This means you can move your funds from India easily, whenever and wherever you wish to.


  • Linking your NRE account with a trading account provides you easy accessibility to the Indian markets allowing you to freely invest in mutual funds and other investment instruments. 


  • Your Indian NRE savings account also helps you reduce your taxes. Taxation rules of India do not apply to the interest earned from your NRE savings account. This gives you more financial control over your wealth. However, this amount may or may not be taxable in your country of residence as per their prevailing tax laws.



  • Your NRE account provides a mandate to a resident Indian relative to access your account, which helps your family members staying back in India to benefit from the funds present in your NRE account. SBM Bank also provides mandate cheque books and cards to your family members for further convenience. 


  • Funds in your NRE fixed deposit account act as a security, helping you take credits against it. Avail loans and overdraft facilities by keeping your NRE fixed deposit account as collateral.


  • Since foreign currency deposited in your NRE account is converted into Indian Rupee, your funds are subject to currency exchange risk. However, SBM Bank India offers you attractive exchange rates like never before. 


  • Your NRE account allows you to transfer and withdraw funds from your account anytime using your international SBM World Debit Card. You can also enjoy exclusive services and high-end privileges on your NRE account card not only in India but all across the globe including your country of residence.


Sitting miles apart, dealing in the banking solutions of your home country can sometimes become overwhelming. At SBM Bank India, we understand your needs. SBM Bank India’s NRE account services come with an exclusive relationship manager completely dedicated to you. Experience SBM Bank India’s personalised banking services to help you reach your financial goals swiftly. SBM Bank India is happy to support you in case of any assistance that you may require. Also, visit SBM Bank India (weblink) to know more about our NRI saving accounts.

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