New to banking from the USA as an NRI? Here's a quick setup guide

If you're an NRI living in the USA, banking isn’t just banking—it’s compliance. Every Indian account, payout, or transfer runs into forms, declarations, and cross-border laws. The country’s financial, legal, and tax systems demand total visibility, and one missed step can spiral into penalties, audits, or freeze-marked funds.

That’s why banking as an NRI from the USA requires more than access—it demands clarity, coordination, and regulatory support. With the right account, you can maintain savings, receive rent, support family, and handle repatriation without second-guessing regulations across time zones. 

NRE vs. NRO accounts: Which one do you need for banking from the USA?
 

Once you're classified as a non-resident under the Foreign Exchange Management Act (FEMA), you’re required to shift your banking to either a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account. Which one you use depends on where your income comes from and whether it needs to be repatriated back to the USA.
 

Many NRIs open both accounts to separate foreign and Indian income streams. For those NRIs who manage banking from the USA, this distinction supports compliance and smoother transfers. It’s one of the first decisions you’ll make when opening an NRI account.

Tax considerations for USA-based NRIs
 

As a non-resident, you are taxed only on income accrued or received in India. Common taxable incomes include:

1. Rental income
 

Income from property in India is subject to tax, with Tax Deducted at Source (TDS) applied by the payer.

2. Dividends and capital gains
 

Dividends from Indian companies and gains from selling assets (e.g., property, shares, etc.) are taxable.

3. Interest income

Interest on NRO accounts is taxable with TDS, while NRE and Foreign Currency Non-Resident (FCNR) account interest is tax-exempt as long as you maintain the status of being a Non-Resident Indian (NRI) or a Resident and Not Ordinarily Resident (RNOR).

Additionally, India has a Double Taxation Avoidance Agreement (DTAA) with the USA to prevent income from being taxed in both India and your country of residence. To claim DTAA benefits, you must:

1. Submit a duly filled Form 10F online and a Tax Residency Certificate (TRC) from your country of residence

2. Ensure your Indian payers apply the tax rate which is beneficial as per the DTAA or the Income Tax Act

5 Things to check before choosing your NRI bank
 

Opening an NRI account is one step, but choosing the right bank can make or break your long-term experience. Here’s what to look for before you begin banking from the USA:

1. Remote account setup from abroad

You shouldn’t have to fly in just to get started—look for digital onboarding with minimal documentation.

2. Fully enabled digital banking experience
 

The bank’s app or portal should let you manage your account end-to-end from the USA.

3. Support for tax documentation
 

A strong NRI bank provides certificates and reports you’ll need during tax season.

4. Clear repatriation policies
 

Check limits, paperwork requirements, and turnaround times for moving money across borders.

5. 24/7 customer service with NRI-specific assistance
 

Look for call-back options, time zone-aligned helplines, or chat tools built for international customers.

In short, the right bank makes digital banking feel as smooth as it would be locally—something that IDFC FIRST Bank delivers to cut down the stress of banking from the USA as an NRI.

How to open an NRI account from the USA
 

Once you know your residency status and the account type you need, the next step is to set it up without visiting a branch in India. Today, most private banks support remote onboarding, but the actual experience varies widely.

Here’s how to open an NRI account from the USA with IDFC FIRST Bank:

1. Step 1: Check your eligibility
 

You must be an NRI, Person of Indian Origin (PIO) or Overseas Citizen of India (OCI) to apply.

2. Step 2: Choose your account type
 

Decide whether you need an NRE account, an NRO account, or both, based on your income sources.

3. Step 3: Gather the necessary documents
 

Necessary documents include a passport copy, a Visa/OCI card, overseas address proof, and a PAN card. The KYC documents require attestation from authorised entities like overseas branches of Indian banks, notary publics abroad, court magistrates, judges, or the Indian embassy/consulate.

4. Step 4: Submit your application
 

 You can fill out the online application form and upload the necessary certified KYC documents. Once your documents are verified, the account shall be opened. You will be advised on the next steps of account activation by your relationship manager.

Why come to IDFC FIRST Bank for NRI banking from the USA
 

Now that you know what matters, here’s why IDFC FIRST Bank is one of the most reliable NRI banking partners, especially when banking from the USA.

1. Remote onboarding

Open your NRE or NRO account digitally, from anywhere in the world—no branch visits required.

2. Dedicated relationship manager

Get personalised guidance from an NRI expert to help manage your finances from abroad.

3. End-to-end digital banking

Enjoy a seamless experience through the award-winning IDFC FIRST Bank Mobile Banking App, including real-time controls and account services.

4. FATCA-compliant documentation
Receive interest certificates and TDS reports to simplify your tax filing.

5. 24/7 global support

Access time zone-friendly helplines, digital services, and NRI-specific guidance when needed.

Recognised by Forbes as one of the World’s Best Banks 2025, IDFC FIRST Bank offers global trust with local expertise. Start your NRI banking journey with IDFC FIRST Bank, where convenience, compliance, and world-class service come together.

What makes IDFC FIRST Bank NRI Banking stand out?
 

1. A range of NRI services, including savings and deposit accounts, remittances, investments, and more
2. Interest of up to 7% p.a. with monthly credits
3. Zero charges on over 30 savings account services
4. IDFC FIRST Bank Mobile Banking App for all your banking services
5. A dedicated relationship manager for all your needs
6. 360-degree digital onboarding and customer service
7. Recognised among the World’s Best Banks 2025 by Forbes in partnership with Statista