Surprising Benefits of NRI Bank Account

ByNishi Singh

Depending on the source of income and nature of deposits, a non-resident Indian (NRI) or a person of Indian origin (PIO) residing overseas can choose from three types of NRI accounts in India – NRE, NRO, and FCNR. While an NRE account is used to park the surplus funds originating in foreign denominations, an NRO account can be opened to manage the money generated in India through rents, pensions, dividends, etc. The third type of FCNR account is used only for term (fixed) deposits with maturity ranging between 1 and 3 years.

An NRI account can be opened online easily free of charge in India without visiting the bank branch physically. The pre-requisites for opening an NRI account include a valid Indian passport, NRI status proof, and proof of address. Along with the features of tax exemption and free repatriation, the NRI account holders are also offered additional benefits and a broad range of 24*7 digital services for a truly delightful banking experience.

Scroll down to know more about the amazing benefits of having an NRI bank account in India:

  • 1. Joint Account Facility – One of the many benefits of opening an NRI account is the feature of jointly holding it with another person. While an NRE account in India can be jointly held with an NRI only, an NRO account can be opened jointly with another NRI or a close relative Indian citizen. Additionally, a resident mandate can also be nominated by the NRI account holder to operate the account while he/she is abroad.


  • 2. Repatriation – The smooth inflow and outflow of currency, known as repatriation, is a key benefit of an NRI account in India. While both NRE and NRO account holders can freely repatriate the interest amount within India as well as overseas, the principal amount can repatriated freely in NRE account only. In the case of the NRO account, the repatriable principal amount is limited by RBI up to USD 1 million in a financial year. 


  • 3. Tax Exemption – The tax liabilities are easily a major factor to consider while opening an NRI account. In the case of the NRE account, both the principal amount as well as the interest earned is completely tax-free in India. Conversely, the deposits of an NRO account are subjected to tax deduction at source (TDS). However, one can apply under DTA guidelines to avail of reduced tax benefits.


  • 4. Convenient to open – With a hassle-free and completely online account creation facility, opening an NRI account in India is just a few clicks away from a person living overseas. Through online document submission as well as KYC verification, NRIs can open an account from their residing country without visiting the bank branch in person.


5. Remotely accessible – The banks provide numerous facilities to NRIs for handling their account from anywhere in the world. Free internet banking to transfer funds and check account statements anytime, payable-at-par checkbook, and international debit cards are a few of the many services provided to NRIs for managing their money from around the world.

Opening an NRI account in India is a convenient way to keep your funds safe and readily available for family members living in the country. Go for it!