NRI Banking

  Being able to go back to a well-established house in your homeland which you can call your own – is a dream come true for many NRIs living abroad. But is it really advisable to block a huge chunk of your funds into building a house which you will use, at least in the near future, only as a second home? To resolve this dilemma, the Indian financial institutions provide NRIs with a well-designed financial system known as NRI housing loans.  What exactly is NRI Housing Loan? NRI Housing Loan is a loan provided by banks to NRIs for purpose of purchasing a land/ building/ house or property for residential purposes. NRI housing loan can also be taken for renovating or remodelling an old property or constructing a new building altogether. These loans are typically called home improvement loans.  In order to avail of an NRI housing loan, an NRI has to first and foremost open an NRI account with an authorised bank. Secondly, he or she has to partner with an Indian resident who w...

  First things first – Let us all understand what investing is exactly? Investing for any person having a stable income means setting aside a portion of this income that you think you may not require in the short-term future. While you are working hard in another country to earn the luxuries of life, this extra money of yours if invested well, helps you generate an additional income apart from your regular business.  As an NRI, the Indian markets give you a vast opportunity to invest your money and reap the lucrative benefits of your investments. The government also gives NRIs special preferences and facilities when it comes to investment in the Indian markets. All you have to do is open an NRI savings account with a bank in India. You can opt for an NRE account, NRO account or an FCNR account according to your needs and requirements.  NRIs can invest in various Indian asset classes like NRI mutual funds, Stocks, Pre-IPOs, Indian bonds, Real estate and many more. If you t...

Coming to the management of your funds, always trust an expert. You may be a field expert, high-end professional or an accomplished businessman, but when it comes to investing your funds in a different country do not forget to engage industry experts of the country. India, though, may not be an NRI, however, you may need help when it comes to making financial decisions in the country. This is all because both the financial and economic demographics of a country change periodically. Investing in fixed deposits may sound ancient, but is still the most popular practice among Indians and NRI investors. An NRI who wishes to park his funds in India needs to first open an NRI account with an authorized Indian bank. He can choose from either an NRO (Non-Resident Ordinary) account, NRE (Non-Residential External) account or FCNR (Foreign Currency Non-Resident) account.  NRI fixed deposits are similar to term deposits. NRIs use an NRE account to open an NRE fixed deposit while they use their ...

  Planning your retirement is as important as planning your current financial implications and investments. A well-defined retirement plan can make your yesteryears peaceful, doubtful free and debt-free. Charting out a retirement plan is essential for everybody, especially an NRI who may wish to come back to India after retirement. Though deciding upon how you want to spend your retirement years may come naturally to you, there are certain practices that you may consider before funding your retirement plans. Define the when, where and how Factoring upon different aspects of your retirement can make your transition into your retirement easy. First things first, define the when, where and how of your retirement. Answering the when question means determining at what age or what strata of your professional career do you wish to retire. Where defines the place where you want to settle. It may the country of your residence, your homeland India or any other country which fulfils how the q...

The best way to predict your future is to create it. With the New Year ticking in with optimistic trends trying to bring in a closure to the pandemic, all that an NRI should do is plan well how he wishes to shape his financial future. Goals set at the beginning of the year give people a positive momentum to achieve their financial goals. Reallocate your funds The pandemic has changed the dynamics of all financial markets and industries exponentially. Some industries have flourished while most sectors have been hit badly. New areas where you can allocate your funds have also cropped it. It is a wise decision to look into your current finances and rebalance your asset allocation to minimise risks and maximise returns. Chart out a well-diversified Investment Plan The Indian markets are considered as one of the most lucrative options to invest one’s hard-earned money. With the highly rewarding service sector and rapidly developing industrial sectors, India is highly popular among foreign i...

  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 I...

  NRIs who want to keep their India based earnings in India, usually hold either NRO or NRE 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. In this article, we will look at what NRE Fixed Deposit and NRO Fixed Deposit accounts are and how they are different from each other. NRE Account - NRE is an acronym for the Non-Resident Rupee/External account. An NRE Fixed Deposit Account is where the Indian residing overseas makes deposits from there and sends the same in an Indian account. The money after reaching gets converted into Indian currency (Rupees). NRO Account: - 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. How are NRE and NRO accounts similar/different? 1. Tax Exemption The interests earned from NRO fixed deposits and credi...