NBI Bank Accounts- Meaning & Types | Enterslice

NRI Bank Accounts

NRIs (Non-Resident Indians) managing income earned in India and abroad may benefit from having two different types of bank accounts in India, an NRE (Non-Resident External) account and an NRO (Non-Resident Ordinary) account. Both NRE and NRO accounts may be opened in the form of savings, current, recurring, or fixed deposit accounts, and depending on your banking needs, one or both may help you more easily manage foreign and Indian-earned incomes.

Whether you are a non-resident Indian (NRI) who is moving back to India or looking to invest in India, or you are a resident who has recently been granted NRI status, the first thing you need to do is have the right bank NRI Bank Account to manage your money

Unlike regular citizens of India, NRIs cannot have standard savings accounts in Indian banks. The determination of NRI status is not as per the popularly known Income-Tax Act, but FEMA (Foreign Exchange Management Act). FEMA uses intent as the basis to determine residential status. So, once you have moved residence (and child’s school) across the shores, this clearly denotes intention, and hence your residential status changes.

NRI Account Meaning:

An NRI Account refers to the accounts opened by a Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) with a bank or financial institution which is authorised by the Reserve Bank of India (RBI), to provide various services.

Here are the types of NRI Accounts that you can opt for, to meet your financial requirements.

• Non-Resident External (NRE) Accounts
• Non- Resident Ordinary (NRO) Accounts
• Foreign Currency Non-Resident (FCNR) Accounts

Our Recommendation: Guide to the Types of NRI Bank Accounts in India