No, per FEMA regulations, one must convert their account to an NRO account within a reasonable time after becoming an NRI.
FAQ Category: Services
What are the balance requirements for NRI accounts?
Balance requirements vary by bank and account type. Most NRE and NRO savings accounts have a minimum balance criterion, while premium accounts may require higher balances in exchange for added benefits.
Are there restrictions on number of NRI accounts one can maintain?
No, as such there are no restrictions on the number of NRI accounts. One can maintain multiple NRE/NRO accounts across different banks based on one’s financial needs and investment planning.
Can NRIs repatriate their inherited property sale proceeds?
Yes, repatriation up to a certain limit per fiscal year is allowed if the property was inherited, but it is subject to tax compliance and certain documentation requirements as per current FEMA guidelines.
How quickly can funds be transferred from India abroad?
Basically, NRE account funds can be transferred instantly via wire transfer or SWIFT. For an NRO account, it may take 2-5 working days due to additional compliance and verification.
Can NRIs invest in Indian mutual funds through a foreign bank account?
No, NRIs cannot invest in Indian mutual funds directly through a foreign bank account. As per FEMA guidelines, investments must be made through an INR-denominated NRE or NRO account to ensure compliance with Indian regulations.
Are FCNR accounts affected by Indian income tax?
In India, interest earned on FCNR accounts is tax-free. It makes them an attractive option for NRIs looking to park foreign currency earnings without tax liabilities in India.
Are NRIs eligible to take loans against their NRE or FCNR fixed deposits?
Yes, NRIs are eligible to take loans from banks in India against their NRE or FCNR fixed deposits. This is subject to the bank’s terms and conditions. These loans can be used for personal or business purposes in India, often at competitive interest rates
What documents are required to open an NRI account?
Typically, NRIs need to provide a valid passport, a visa or proof of NRI status, proof of address (overseas or Indian, if applicable), a PAN card, and recent passport-size photographs. Some banks may also require video KYC or attested documents as per their policies.