An NRI account can be opened by a Person of Indian Origin (PIO) or a Non-Resident Indian with either a financial institution or a bank authorized by the Reserve Bank of India. There are various types of NRI accounts that one can opt for, such as a Non-Resident Ordinary (NRO) account, Non-Resident External (NRE) accounts and Foreign Currency Non-Resident (FCNR) account.
To learn more about an NRI account, look at seven features that this account offers:
- Convenient money transfers
The full form of an NRE account is Non-Residential External account, and that of the NRO account is Non-Resident Ordinary account. You can deposit money earned abroad into an NRE/NRO account which is then accessible in INR in India. As a result, having an NRI account makes sending money from abroad to India very simple. The convenience of transfer and ease of account maintenance should be the major deciding factors when choosing an NRI account.
- Minimum balance requirement
The minimum balance requirement for NRE and NRO accounts has been significantly reduced by many banks over the years. Most banks today only require around Rs. 25,000 as a minimum balance.
- Good exchange rates
Due to their large volume of transactions, banks can provide competitive exchange rates. An NRI account must therefore be opened taking into account the bank’s currency rates. This is especially vital if you frequently move money. You’ll be able to make significant savings by using the most competitive conversion rate.
- Instant PIS facility
To invest in stocks through repatriation, NRIs must have a portfolio investment scheme (PIS). Using PIS, NRIs can buy and sell shares by routing such transactions through their NRI Savings Account.
IDFC FIRST Bank is the first in the industry to simplify the PIS route for non-resident Indians who wish to invest in the Indian stock market. With IDFC FIRST Bank, you can open a PIS account online quickly and easily. Additionally, it gives customers seamless access to various PIS reports, including the Capital Gains/Loss Statement, Instant PIS Permission, and Holding Reports.
- Tax exemptions
The interest earned on NRE accounts is tax-free without any limit under Section 10(4)(ii) of the Income Tax Act. The exemption, however, is only available for NRE accounts, not NRO accounts.
The current rules in India make it possible to flexibly repatriate both the principal and interest income in NRE accounts without restriction. NRO Savings accounts allow you to transfer interest income without restrictions, but principal transfers are subject to forex regulations.
- Dedicated relationship manager
Each NRI account holder at IDFC FIRST Bank has a dedicated relationship manager. By assisting you with your transactions and meeting your specific needs, relationship managers provide the necessary support and convenience in managing NRI accounts.
For any NRI, selecting a savings bank account is one of the most crucial decisions when moving abroad. Opening the right NRI Savings Account will ensure that you can manage, transfer, invest, and grow your funds efficiently, conveniently, and cost-effectively.