List of things an NRI needs to take care of before returning to India.

 Homecoming is a sentiment! Love, Nostalgia, Joy and Apprehensions. Apprehensions of resettling in a place that may have changed over the years. Shuffling from one country to another can be overwhelming, packing your belongings, winding up your work, settling your bills to closing your accounts.

The ecosystem of the Indian economy is quite different from that of the western nations. It is always advisable to do a little homework about the place before you start your journey.

Plan your Finances

Since you will be settling in a new country, your incomes, expenses, investments everything will change. The first thing you need to do is rework your financial plan. Special attention needs to be given to asset allocation and parking of your current funds in the right places. Set your long term and short term goals beforehand, make provision for contingencies and set aside some budget for any extra expenses which you may incur at the beginning of your tenure.

Study the Indian Tax System

Tax laws in every country are different. The Indian Tax System gives extra leverages to NRIs resettling in India. NRIs returning to India are called Resident but not Ordinary Resident (RNOR). Study the taxes that apply to you and plan your finances well in advance. Foreign income that an RNOR brings to the country is tax exempted for the first 3 years. Knowledge about your tax rights and duties will help you settle much more peacefully in your country.

Find the right place to settle

Once you have got your financial plans in place, the next assignment in your checklist is to square down on the place that you wish to settle in India. NRIs may relocate the traditional way in their childhood cities or even opt to stay at more advanced or peaceful abodes in the country. Hill stations and beach destinations are quickly becoming popular destinations among NRIs who wish to settle with all the luxuries of life. You may choose to stay in a city that is close to the vicinity of your family and friends but still does not alter your current lifestyle. Check out 6 destinations for NRI to settle back in India (provide link) for some helpful insights.

Sort and Designate your Bank Accounts

The world today has shrunk in your palms. Your bank now travels with you wherever you go. While you are free to continue with your current bank accounts in the country of your residence (for some duration of time), there are a few bank accounts that you need to open in India to function in the country. You will have to open resident savings account if you plan to work or earn any recurring extra income, or a resident fixed deposit account to save for your future. If you already have an NRE, NRO or FCNR savings account in India, these accounts can be easily converted to resident accounts. Convert your NRO savings account into a resident savings account. Your NRO fixed deposit account and FCNR fixed deposit account can be held as they are till maturity. Once matured these accounts can be changed into Resident Foreign Currency accounts.

Make provisions for Insurance

Your current insurance policy will be considered an insurance policy of a foreign country. This policy will not cover you in India once you decide to resettle. Before you come to India, list down the types of insurance you may need. Life insurance and medical cover for you and your family, general insurances for your other prized possessions, theft and fire insurances all may help you make your transition from one country to the other smooth and hassle-free.

Look out for Investment Opportunities

You have worked hard and may have earned a large sum of money, all these years settling abroad. It is advisable to invest this money wisely so that you can multiply your funds. There are numerous investment options available in the Indian markets where you can grow your funds. Mutual funds are one of the most popular investment instruments among NRIs. Investments in mutual funds and equity not only provide you with much needed financial support but also help you reduce your tax liability. Setting aside some money to invest in the Indian markets is a wise decision for your future.

Consult a Financial Advisor

Looking at the list above may leave you a little worried as to how will you tick the checklist sitting miles away from your homeland. However, there is little to worry about. All you have to do is contact a good financial advisor who will not only guide you about the investment, taxes and banking practices of India but also help you with your documentation and fulfilling any legal requirements that may have seemed extremely complicated otherwise. Seek help from financial experts who will guide you through all the processes.

If you already have an NRI account in India, your partner bank will also help you to get the expert financial advice needed to plan your finances. AT SBM Bank India, we take utmost care of all our NRI customers who wish to return to their country with efficient services and 24 x 7 technical support. We at SBM India are always happy to support you in case of any assistance that you may require. Also, visit SBM India to know more about our NRI accounts.