Understanding Non-Resident Indian (NRI) in banking

Are you an Indian living abroad and wondering how to manage your earnings in India? Understanding what it means to be an NRI is the first step to unlocking the right banking solutions. As an NRI, you have exclusive access to specialised bank accounts that can help you earn, save, and invest efficiently. Whether you're a student, a professional overseas, this article will help you explore the meaning of NRI, how it impacts your financial planning, and the banking options available to you in India.

What is the full form of NRI?
 

The full form of NRI is Non-Resident Indian. An NRI is an Indian citizen who resides outside India for work, education, or other purposes. NRIs have specific banking and investment needs due to their income being in foreign currencies like the US Dollar or Euro. NRI accounts, available at major Indian banks, help manage these needs by allowing NRIs to hold and convert their earnings into Indian Rupees. Non-Resident Indians (NRIs) can open two types of accounts in India: NRE Account and NRO Account.

IDFC FIRST Bank comes with comprehensive NRI banking solutions for all your financial needs. You can open an NRI account on the go from anywhere around the world, following a few simple steps, get access to a range of benefits like favourable exchange rates, cost effective money transfers to and from your NRI bank account, and tax benefits on NRE and FCNR accounts.

Who can open an NRI account?
 

• Non-Resident Indians (NRIs) who have a source of income in India can open an NRO account to park these funds. Those who have a foreign income can open NRE accounts.
• Persons of Indian Origin (PIO) and Overseas Citizens of India (OCI), too, are eligible to sign up for NRI accounts.
• Students studying abroad: Students studying in foreign universities can also open NRI accounts.
• Professionals working abroad: If you are a working professional in a foreign country, you can open an NRI savings account.
• Seafarers working in international vessels or Oil rig employees working on International Offshore Projects can also open specialized Seafarer NRI accounts

Documentation required for opening an NRI Account
 

To open an NRI Savings Account, you are required to submit documents under four major categories:

• Proof of identity such as a passport
• Address proof
• NRI/ PIO / OCI proof/ CDC booklet in case of seafarer
• PAN (mandatory for non-face to face applications)/Form 60

Documentation requirements may vary across banks based on the applicant's country of residence and the account type.

Overview of NRI accounts
 

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 exempt.

With IDFC FIRST Bank’s NRE Savings Account, you can enjoy tax-free savings, competitive interest rates with monthly interest payouts that boost your financial growth. Additionally, you enjoy cost effective money transfers worldwide without any processing fee (Intermediary bank charges may apply). With the innovative banking app, you can access and manage your NRE Savings Account on the go.  

What is an NRO account?
 

For revenue received within India, a Non-Residential Ordinary or NRO Account can be formed and funds in INR value can be deposited in that account. Rent, dividends, and other sources of income like pension can be parked in the account. However, funds in NRO account are taxable in India.

IDFC FIRST Bank’s NRO Savings Accounts offer one of the highest interest rates on your income earned in India. You enjoy monthly interest payouts, a mandate facility for your family member to access the bank account, as well as an innovative mobile app to access and manage your account from anywhere around the world. You can also repatriate up to USD 1 million each financial year to your country of residence, after paying applicable taxes on the interest earned.  

What is a Seafarer account?
 

A Seafarer account (or mariner's account) is a specialized Non-Resident Indian (NRI) bank account in India, available as either an NRE or NRO account, designed for the financial needs of seafarers. 

IDFC FIRST Bank Seafarer savings account is a specially curated rupee denominated for seafarers with a choice to opt for either an NRE or an NRO account or both, to cater to all banking needs remotely. In tandem with a revolutionary banking app that facilitates ease of access and smooth management of finances, IDFC FIRST Bank ensures Seafarers bank seamlessly.

Conclusion
 

Many NRI accounts exist and can be used for earning decent returns. Understanding what an NRI account is, what NRE and NRO mean, can help you make informed decisions. If you have any doubts regarding the accounts, head over to the IDFC FIRST Bank NRI Banking page, where you can find all the details.

Enjoy high exchange rates, monthly interest credits on NRE/NRO Savings Accounts, and access to a dedicated relationship manager. Visit the website today and get started!