NRI Savings Account

Many Indians living abroad also have a source of income in India such as investments, properties, and deposits. For such individuals, an NRO account proves beneficial. NRO savings account is designed for people who have some form of income in India while staying  overseas such as a rental property, mutual fund dividends, pension, fixed deposits, or any other similar sources in India. Here are some features of an NRO account.

1. Interest income is subject to deduction of tax at the source

2. NRIs can repatriate a maximum of USD 1 Million per financial year from an NRO account

IDFC FIRST Bank understands specific monetary requirements of Indian citizens dwelling abroad and offers a variety of bank accounts, including savings accounts, deposits accounts, and investment schemes. Following are the bank accounts you can open as an NRI with IDFC FIRST Bank.

1. Transaction Accounts – NRE & NRO Savings Accounts

2. Fixed Deposits – NRE & NRO INR Fixed Deposit; FCNR (B) Deposits

3. Recurring Deposits – NRE & NRO

4. Overdraft against  INR  Deposits

5. Portfolio Investment Scheme

Non-resident Indians can open an NRE account in two ways as mentioned below.

1. Face-to-face (if the customer is present in India)

2. Non-Face to face

While opening an NRI account, Individuals need to furnish a few documents as required by the bank. The following documents are required for opening an account:

1.      Identity Proof: Passport

2.      Non-Resident Status Proof (Any of the following)

a.      Visa

b.      PIO Card

c.      Foreign Passport with PIO declaration

d.      For Seafarers: Continuous Discharge Certificate with Valid contract letter

e.      Resident Permit

f.       Resident Card

3.      Overseas Address Proof (Any of the following)

a.      Passport

b.      Driving License

c.      National ID/Government-issued ID

d.      Latest Utility Bill (Mobile/Gas/Electricity/Telephone)

e.      Latest savings bank statement from a transactional account

f.       Property or Municipal tax receipt

g.      Resident Permit

h.      Voter id/ Electoral card

i.        Employment letterfrom employer specifying that the accommodation has been provided by the employer

4.      Tax related:

a.      PAN/Form60

b.      FATCA-related fields on the application form

5.      Others

a.      Recent colour photograph

b.      Image of signature (for online applications)

As a mandatory verification process for Non face to face account opening, individuals need to visit the authorities and attest their documents before submitting them. Following is a list of attesting authorities:

1.      Authorized officials of overseas branches of Scheduled Commercial Banks registered in India

2.      Branches of overseas banks with whom Indian banks have relationships

3.      Notary Public Abroad

4.      Court Magistrate

5.      Judge

6.      Indian Embassy/Consulate General

7.      Post Office overseas

8.      Exchange houses having tie ups with Indian Banks

9.      Mayoral Office

10.    Ministries in Gulf Regions

11.     Solicitor / Registrar

Apart from the primary holder, an applicant may open an account with 4 joint holders in NRE or NRO account. i.e. there can be a maximum total of 5 holders in the account opened for NRI.

The primary account holder must have an NRI status for opening  an NRE/NRO account. Joint holders may be NRI or resident Indians.

You can request a debit card and chequebook while completing the account opening process. Once your application is approved, the bank will dispatch the requested items to the account holder’s registered address. However, if you haven’t applied for a chequebook and debit card during the application, you can apply for them online using the IDFC FIRST Bank mobile app or by visiting the nearest bank branch. 

A physical card is available on request You can also request Virtual Debit Card as soon as your account is opened and activated (Internet Banking & E-com transactions are enabled on this card). If you wish to get a physical debit card, you can request it using the mobile banking app or net banking. 

Different sets of rules are applicable for taxation when it comes to an NRE and NRO accounts.

For NRE: The interest earned on this account is exempt from taxation in India, but it might be subject to tax in your country of residence.

For NRO:  The interest earned on this account is subject to TDS at the rate of 30% in India, along with additional charges (Surcharge and Cess) when the interest is credited to your account. Additionally, the interest earned may also be subject to tax in your country of residence.

The repatriation rules vary depending on the type of NRI account you hold. Here are the repatriation guidelines on NRE and NRO accounts as per the government’s guidelines.

For NRE: Funds from NRE accounts are freely repatriable i.e. both the Principal amount and interest earned are freely and completely repatriable. We only require written instructions with the wire details for executing this Repatriation.

For NRO: Funds from the NRO Accounts can be repatriated post payment of applicable taxes with a limit of USD 1 million in a financial year. We need documents as per the guidelines issued by the Reserve Bank of India depending on the source of the funds in the account.