Five Significant Facts You Should Know About NRI Banking

Banking in the modern, digital age, has become extremely convenient. Today, you can access your bank accounts from any corner of the world. Whether you are a resident Indian or a Non-Resident, you can access your Indian bank accounts while you are living abroad, thanks to NRI banking facilities. NRIs typically have different banking needs as compared to resident Indians. This is why banks offer specialized services to NRIs so that they can access their bank accounts in India and stay on top of their finances in their homeland. Here are five significant facts you should know about banking as an NRI.

You can open two types of NRI accounts

NRIs can open two main types of NRI accounts – a Non-Resident External Rupee, or NRE account or a Non-Resident Ordinary Rupee, or NRO account.  Most NRIs generally opt for the latter, since it enables them to deposit both, INR and foreign currencies. NRO bank accounts are ideal for NRIs who have investments in India, and they can use the funds from these accounts to pay their EMIs, insurance premiums, utility bills, and so on. Foreign currencies deposited in both NRO and NRE accounts are immediately converted into INR.

You can also open foreign currency fixed deposits

If you’re residing in a country where the value of the currency is stronger than INR, then you have the option of opening Foreign Currency Non-Repatriable of FCNR deposits. You can open these deposits when you visit India or through internet banking facilities provided with your NRE or NRO accounts. You need not worry about currency fluctuations on maturity with FCNR deposits.

You get access to various essential services

Banks provide a wide range of NRI services to enable you to access your account remotely. With the help of NRI internet banking services, you can transfer funds to different accounts in India. Some banks also provide Demat and depository services, enabling you to invest in the Indian share market while you are based abroad. Furthermore, you can apply for loans and overdraft facilities for investments in India and abroad.

You can assign a Power of Attorney

Since you would be based abroad, banks require you to assign a Power of Attorney who can handle and manage your NRI banking accounts. The individual holding the POA gets limited, necessary access to your bank account. For instance, they may not withdraw more than a specific amount of money, except the amounts needed for your annual investments and such. Typically, you can list your joint account holder in India (in case of NRO bank accounts) as your POA.

You can open the account even after moving abroad

Thanks to the convenience of internet banking, you can open your NRI account even after moving abroad, through the bank’s website. You can either convert your existing account into an NRI account or open an account with a different bank. However, if you are doing so after moving abroad, you must get your documents attested from the Indian Embassy of your country of residence.

 So, if you wish to manage your finances in India, make sure you opt for NRI accounts. Note that not all banks are permitted to provide NRI services. As such, you must open your account only in RBI-authorised banks.