NRI Banking

  When resident Indians move abroad, there are many things to check off their to-do lists. From packing up your belongings, figuring out accommodation, booking tickets, sorting out visas and other permissions to meeting your family and friends one last time before you pack your bags for good, there are many tasks to be accomplished. But between the chaos and the excitement of it all, don’t forget to settle your finances in India. After all, you’d rather enjoy the sights and culture of your new home and not being buried in paperwork from your bank accounts back in India. One of the most important tasks you have to finish before leaving the country is taking care of your savings account. Many resident Indians feel stumped as to what to do with their already existing savings account as they won’t be valid once they become Non-Resident Indians (NRIs). Well, you don’t need to close your accounts, you can simply get them converted into an NRO Savings Account (Non-Resident Ordinary) or o...

  Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizenship of India (OCIs) are always looking for lucrative ways to invest in India. Real estate has always been a favorable option for NRIs due to the emotional connection they have with their homeland. Many NRIs aim at settling down in India after retirement, and for that purpose, investing in real estate in India is a good idea. Even looking solely from an investment point of view, it is an attractive proposition. NRIs can expect 7-8% appreciation annually over ten years. To encourage more Non-Resident Indians to invest in the Indian real estate market, the RBI and Foreign Exchange Management Act (FEMA) have laid down a few guidelines. Here are some more rules that NRIs need to keep in mind before investing in properties in India: Types of properties NRIs can invest in as many residential and commercial properties as they wish in India. However, agricultural land, plantation property, or farmhouses can...

  While many Indians leave their homeland to make a better living abroad, they usually aim to come back home after retirement. A lot of financial planning goes into ensuring that your retirement years are comfortable. If you’re a Non-Resident Indian aiming to return to India after retiring, here are some things you need to consider. Set a retirement age Most people choose to retire by 60, but you can aim to retire earlier if you set some financial goals for yourself and follow through. Your retirement age also depends on your country of residence. Expats in the UAE can work only till they are 65. However, in Saudi Arabia, Oman, and Kuwait the retirement age is 60 years. If you still wish to continue working in some capacity after retirement, you can always choose to work in India. An unspoken rule in retirement planning is that you spend two-thirds of your life working and accumulating wealth for retirement and the third is spent in the drawdown. There are 4 major factors to consid...

Many Indians dream of settling abroad, but only a few have the determination to make it happen. Moving abroad is almost like starting a brand new life as an NRI (Non-Resident Indian). According to Foreign Exchange Management Act (FEMA), an NRI is a prior resident of India who has moved abroad for professional reasons or an indefinite period. The idea of starting a brand new life in a new country may sound very exciting, but before you pack your bags and leave for good, it’s good to make sure that you have put your finances in order back home.  Here are some tips to keep in mind before you start your new life abroad: Convert your bank accounts If you have a source of income in India from your property on rent you will have to maintain an NRO Account (Non-Resident Ordinary). You can convert your Savings Account to an NRO Account before you leave the country so that you can manage your earnings in INR with ease. In case you have multiple resident Indian accounts, you can also consolid...

  The Indian market is ripe with various investment opportunities for residents and non-resident Indians alike. NRIs from across the world have made the most of this opportunity and invested in India to gain lucrative returns on their funds. While most NRIs have NRE Savings Accounts , NRO Savings Accounts , or FCNR Accounts to manage their money in India, some NRIs go beyond and invest in a lot more to expand their portfolio. NRIs can invest in debentures, government securities, listed non-convertible debentures, mutual funds, and more either on repatriation or non-repatriation basis. NRIs enjoy many benefits when they invest in India, however, there may be questions about how these investments are taxed.  The taxation on NRI investments depends upon whether India has signed a Double Tax Avoidance Treaty (DTAA) with the NRIs country of residence. If yes, then the NRIs need not pay double tax on their investments in India. However, if the DTAA is not signed, the NRIs are expec...

  2020 may have been a challenging year for the Indian market, but the economy has started to revive in 2021. India is one of the largest and fastest-growing economies in the world, and one must fully leverage this opportunity to invest in the Indian markets for a diversified portfolio that provides high returns. An Indian stock market is always a good option for NRIs to invest in. The Foreign Exchange Management Act (FEMA) allows Non-Resident Indians and Persons of Indian Origin (PIOs) to invest directly in the Indian stock market, however, investing through mutual funds is considered to be a safer and smarter option. NRIs and PIOs are allowed to invest in all kinds of mutual funds in India, except for NRIs based in the US and Canada who may not have the luxury to do so due to the dreary paperwork required by Foreign Account Tax Compliance Act (FATCA).    If you are NRI planning to invest in mutual funds in India, here are some things you need to keep in mind. Open an Ac...

  While most NRIs have NRE Savings Accounts /NRO Savings Accounts/FCNR Accounts in India and even invest in the Indian markets, many may not consider buying life insurance in India. However, there are many benefits of maintaining a life insurance policy in India, especially if you have a family to take care of the back home. While NRIs support their families financially through various stages of life, life insurance policies help them look after their families in case of unforeseen events.    The Foreign Exchange Management Act (FEMA) allows Non-Resident Indias (NRIs) and Persons of Indian Origin (PIOs) to get life insurance in India. If you are an NRI or PIO, here are the eligibility criteria you need to meet for buying life insurance in India.   - You or your parents or grandparents have been citizens of India as per the Citizenship Act, 1965 - You possess or have possessed an Indian passport at some point - You are married to an Indian citizen   Here are some...