A Non-residential Indian or an NRI is an individual
who is an Indian citizen but also possesses the citizenship of some other
country. A lot of Non-residential Indians have experienced the problem of
maintaining a rupee account in India. Hence, to tackle this problem an NRI banking
account is provided as a way to transfer the money which was earned by an
individual of Indian origin overseas back to India and another purpose of the
NRI account is to hold the money earned in India inside India. An NRI account
is designed for individuals who reside in other countries for work or visit the
different countries for an extended period of time or also for the individuals
who are in India but get the earnings from different countries. As an NRI, the
individual may come across a variety of options and they may have to choose
between different products when it comes to deciding about their savings and
investments. An NRI banking account is an effective solution for an
individual who wishes to keep their money in Indian currency. They can make an
informed decision only when they are aware of the different NRI banking
account options which are provided for the customers. This
will help in making sure that the money is better invested and also generates
better returns. There are various types of NRI bank accounts available for an
NRI investor. Some of the major ones are listed below.
Different
types of NRI bank accounts are listed below:
Non-resident external (NRE) savings account:
In this type of NRI bank account, the funds will be stored in INR. This means
that when an individual will deposit the money in the NRE account, the foreign
currency will be converted to Indian rupees at the prevailing foreign exchange
rates. This type of NRI banking account is generally used for maintaining the
income that an individual has earned in a different country.
Foreign currency non-resident (FCNR) fixed deposit
account: This type of NRI account is a foreign currency
non-resident account which has to be opened and maintained in foreign currency.
A customer’s principal amount and the interest in an FCNR NRI bank account will
be completely transferable. The interest income earned through these types of NRI
bank account is non-taxable in India.
