You may move overseas to fulfil your career or educational aspirations. When you extend the stay beyond a limit, your residential status changes to Non-Resident Indian. This affects your connection with your home country. The most noticeable impact is on the finances. You no longer enjoy similar benefits as the residents. You need to avail yourself of specialised services to manage your funds in India. This helps the government streamline banking facilities to suit your needs.
The primary requirement for financial management is opening an NRI Account. It works as a Regular Savings Account but with specific rules and services. You get to choose from Non-Resident External and Non-Resident Ordinary Accounts. The categorisation receives based on the purpose and distinctive deposit management. To select the correct account type and optimally utilise the features, consider these factors:
The two NRI Bank Account types have fundamental distinctions. This makes them apt for your differential banking needs. An NRO Account lets you manage your Indian revenue like rent, commission, pension, etc. It provides a space to park funds earned in India. You may use the same to make investments. On the other hand, NRE deposits consist of foreign income. They get converted into Indian currency for easy maintenance in India.
The essential requirement to open the account is confirming your NRI Status. Banks use different parameters to determine the same. But the general rule, according to the Reserve Bank of India, is to extend your stay beyond 182 days. Also, use the Indian passport for valid reasons like education, employment, or business. Banks also have additional criteria for opening an NRI Savings Account. You get to check the same on their websites.
Besides the general banking services, it is convenient to manage funds through NRI Savings Account online. You get easy transferability, remote access, and higher interest. You also get access to other Indian financial products like investments, Insurance, Loans, etc., to meet your financial management needs.
You can open NRI Savings Account through a simple procedure online. Digitisation has simplified the requirements. You log in to the bank's website or application to fill in the account opening form. This involves inputting general information and attaching the supporting paperwork. Upon submission, your account gets activated in a few hours. It unlocks access to facilities like Online Banking, chequebooks, banking cards, etc.
Banks use documents as the base to verify your eligibility. The primary paperwork fulfils general KYC requirements for NRO and NRE Accounts. It includes your passport-sized photograph, identity proof, address proof, etc. Additionally, you must furnish your passport copy, Visa/work permit, initial payment cheque or draft, overseas address proof, etc. A certified overseas notary, court magistrate, judge, or Indian embassy should attest to them.