Notifications

  • As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.

  • Activate your Credit Card within minutes and enjoy unlimited benefits

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

Understanding Non-Resident Indian (NRI) in banking

Summary: Non Resident Indian (NRI) account is a bank account held by an individual who is a resident of India but is living outside of the country. Know types of NRI account.

20 Sep 2021 by Team FinFIRST

An NRI Account helps protect your money and save tax. Here is a comprehensive look at an NRI account, including its types.


Non-Resident Indians (NRIs) have unique banking and investment needs. Because they live overseas, most of their earnings and assets is in international currencies, such as the US dollar, Euro, and so on. As a result, NRIs might need an account that can hold and convert their securities and money in Indian rupees.

An NRI account serves this purpose. An NRI account can be opened at almost all of India's major banks and financial organisations, such as IDFC FIRST bank. NRI accounts offer a variety of features, such as currency denomination, amount transferability, taxation, and so on. But do you know what NRI accounts are? Let us inspect what is an NRI account and the various kinds of NRI accounts available.

What is an NRI account?


We have already discussed what NRI stands for. Let us take a comprehensive look at what is an NRI account. Non-Resident Indians (NRIs) can open three types of accounts in India: NRE Account, NRO Account, and FCNR (B) Account.

People who have lived outside of India's geographical regions for at least 120 days in a year and have spent less than 365 days in India in the past four years are eligible to create NRI accounts. This is because, under the Income Tax Act of 1961, such individuals' residential status would convert to that of an NRI. If a person leaves India intending to work in another country, he or she will be declared an NRI straightaway.

It is critical for NRIs to grasp the differences between the three bank accounts that are available to them in India. It makes it easier for them to meet their investing goals, their financial obligations, and make suitable plans for their residency.

Based on the NRI account they opt for, NRIs can open these accounts with earnings generated either in India or in their place of residence.

 

Types of NRI accounts


NRIs in India can open three types of accounts: NRE (Non-Resident External Account), NRO (Non-Resident Ordinary Account), and FCNR (Foreign Currency Non-Resident) bank accounts.

The key differences between the accounts are:

What is an NRE account?


The Non-Resident External or NRE Account makes it easier to transfer money generated overseas to India. It is a rupee-dominated account that's repatriable, meaning you may send your international earnings back to India. The interest you earn on the NRE account is tax free.

Simple interest is a technique used to calculate the proportion of interest paid on a sum over a set time period at a set rate.

 

What is an NRO account?


With revenue received within India, a Non-Residential Ordinary or NRO Account can be formed and held in INR values in that deposit account. Rent, dividends, and other sources of income are all possibilities. There is no barrier to currency conversion in an NRO account because deposits are done in rupee denominations.

What is an FCNR (B) Account?


The FCNR (Foreign Currency Non-Residential Account) permits Non-Resident Indians or Persons of Indian Origin to make deposits in foreign currency. NRIs or POIs can make these payments in the denomination of their home country, and they must be held in any of the foreign currencies prescribed by RBI in that account.

Many NRI accounts exist and can be used for earning decent returns. In the article, we discussed what is an NRI Account, NRE meaning and much more. If you have any doubts regarding the accounts, head over to the IDFC FIRST Bank webpage, where you can find all the details you may require on the topic.

IDFC FIRST offers access to NRI savings account. It offers high exchange rates, monthly interest credits on NRE/NRO savings account, and access to a dedicated relationship manager. Visit the website to get started! 

 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.