NRI Banking

  While Indians go abroad for better careers and financial opportunities, many of them dream of returning home someday. Many of these NRIs have families in India that they financially support. These NRIs are constantly looking for newer ways to invest their money in Indian markets in an attempt to help with some extra finances at home and also to save for their future when they return to India. There are many options like NRE Savings Accounts , NRE Fixed Deposits , FCNR Deposits , and more that NRIs can start to keep some funds saved for the future in India, but there are more options that may offer better returns in the long run, and mutual funds are one of them. Much like resident Indians, NRIs are allowed to invest in mutual funds in India, however, they need to adhere to the Foreign Exchange Management Act (FEMA).   Here’s the procedure NRIs need to follow to invest in mutual funds in India:   Set up a bank account Indian Mutual Fund Asset Management Companies do not ...

  There are many NRIs who send a part of their income back home to India regularly. Be it for family expenses, investments, or payment of bills, many NRIs open an NRE Savings Account to manage expenses back home in Indian rupees. Non-Resident Indians can open an NRE Savings Account, deposit money in the currency of their residence and it can be withdrawn in Indian currency from the account. What’s more, the amount is fully repatriable. An NRE Savings Account is one of the best ways to send money to India because there are many benefits attached to it. Here are some of them.   Tax-free returns One of the best benefits of an NRE Savings Account is that the interest earned on the principal amount is non-taxable in India. You can earn lucrative returns without having to pay extra tax. It’s a win-win!   Easy transferability to a foreign account The principal amount and the interest in an NRE Savings Account are easily transferable to an account in any foreign bank without any...

  No matter how far you go, a part of you will always yearn for home. No wonder there are so many NRIs who are constantly looking for investment opportunities in India. The country has been through major industrial development in the last 20 years, and hence, many NRIs are looking to invest in Indian markets. It helps them provide financial stability for their families back home and also earn some profits for themselves. While there are many NRI Savings Accounts such as NRE Savings Account, NRO Savings Account to park money and generate some earnings, there are more lucrative opportunities for NRIs to invest their wealth in India. Here are some popular options: Fixed Deposit If you’re looking to invest your money and get decent returns, Fixed Deposits are a safe and promising bet. FDs are popular among residents as well as Non-Resident Indians because they help diversify your portfolio and you get guaranteed returns notwithstanding market fluctuations. You can invest in NRE Fixed...

People who live away from home always need ways to send money back to their families. For domestic transfers, there are various options like NEFT, IMPS, UPI Payments, and more. However, for international transfers, remittance is the way to go for fast and reliable money transfers.   NRIs across the world send money back to India for various reasons such as supporting their families, making investments, or maintaining an NRE Savings Account . It is one of the most effective, fastest, and cost-effective ways to send money to any part of the world.   What is a remittance? The term “remittance” comes from the word “remit” which means ‘to send back’. Remittance is the overseas transfer of money from one party to another. Remittances also significantly add to the gross domestic product (GDP) of a particular country. Remittance is used for various reasons by different people across the world. Most NRIs who work abroad send a portion of their income back home to their families. Remitt...

  Fixed Deposits have always been a safe and profitable way of investing money. Indians have been using Fixed Deposits for decades to save and get more returns on their money, and now, even Non-Resident Indians can do the same with a range of NRI Fixed Deposit Accounts. There are three major categories of NRI deposits, each serving a different purpose. Let us understand what these deposits are and what purpose each of them serves. NRE Fixed Deposit Account A Non-Resident External (NRE) Fixed Deposit helps NRIs deposit their earnings in the currency of their country of residence. However, the currency is then converted into INR at the prevailing exchange rates. Once the money is deposited, it starts earning interest as per the applicable FD rates for a fixed tenure. Withdrawals from these deposits are made in INR. The best part about this account is that the interest earned on an NRE Fixed Deposit Account is not taxable in India. This deposit is especially suitable for NRIs with fa...

  Just like there are various types of bank accounts for Indians living in the country, there are different types of NRI accounts for Indians living abroad to help manage their money back home in India. To understand the different types of bank accounts an NRI can open in India, first, let us understand who qualifies to be an NRI. When an individual stays out of the country for at least 120 days in a year and less than 365 days in the previous 4 years, their residential status changes to Non-Resident Indian (NRI). Any NRI is qualified to open an NRI account with various banks in India. Banks such as SBM Bank India offers a range of NRI Savings Accounts with competitive interest rates and many more benefits that help make managing funds back home easy. Based on their investment and financial needs, NRIs can opt for any of the following accounts. NRE Savings Account A Non-Residential External Savings Account or NRE Savings Account is opened by NRIs to maintain earnings from their...