Can an NRI have both, Resident and NRI Bank Account in India? (2024)

FAQs

Can an NRI have both, Resident and NRI Bank Account in India? ›

You can have a joint NRE account only if both the parties are NRIs. On the other hand, you can open an NRO account with another NRI or a resident Indian (a close relative) as mentioned under Section 6 of the Companies Act 1956.

You can have a joint NRE account only if both the parties are NRIs. On the other hand, you can open an NRO account with another NRI or a resident Indian (a close relative) as mentioned under Section 6 of the Companies Act 1956.

2. Can an NRI maintain multiple accounts with different banks in India, simultaneously ? Ans.: Yes, there is no prohibition to open and maintain multiple accounts a/cs.

As a Non-Resident Indian (NRI), holding a joint account with a resident Indian can be a convenient way to secure the financial well-being of your family in India.

Resident Indians are not allowed to operate a bank account once their status changes to NRI. The NRIs need to open an NRO account for their financial transactions in India. NRIs may be liable to pay penalty for not converting their existing bank account into NRO account.

Yes, if you are an NRI (Non-resident Indian), you can open more than one NRI account with different banks in India. You can also open different types of NRI accounts, i.e., NRE (Non-Resident External) and NRO (Non-Resident Ordinary) and multiple FCNR (Foreign Currency Non-Resident) deposits with the same bank.

If you open an NRE or FCNR Account, you are exempted from paying the income tax on the interest earned from your deposits. However, if you opt for an NRO Account, the interest generated from your deposits will attract income tax in India, which can be one of the few disadvantages of an NRI Account.

Receiving Indian income in NRI Account – An NRI may be earning income in the form of dividends, rental income, business income, etc. in Indian currency. For any such credits, an NRI must open NRO Account only. An NRE Account does not allow any credits in Indian currency and may reject the transaction.

Both NRIs and OCI cardholders are allowed to open bank accounts in India. There are primarily three types of bank accounts that NRIs and OCIs can hold: Non-Resident Ordinary Accounts (NRO), Non-Resident External Accounts (NRE), Foreign Currency Non-Resident (Bank) Accounts FCNR(B).

There are no restrictions on the amount of current income that NRIs can repatriate from their NRO account, including rent, dividends, pensions, interest, and so forth. Nevertheless, the amount of assets (other than current revenue) that can be remitted is limited to $1 million per fiscal year.

What is the NRE account rule in India? ›

If you wish to open an NRE Account, you can open it either individually or jointly. However, if you wish to open a joint NRE Account, you can only open it with another NRI. However, keep in mind that NRE Accounts are prone to exchange risk fluctuations.

This status applies under certain conditions, such as if you have been an NRI nine out of 10 previous years or have stayed in India for less than 729 days over the preceding seven years. RNOR status provides certain tax benefits, as it exempts foreign income from Indian taxes.

Types of NRI Accounts

As mentioned earlier, there are three types of accounts available to NRIs in India – NRE stands for Non-Resident External Account, NRO stands for Non-Resident Ordinary Account, and FCNR (Foreign Currency Non-Resident) bank Account.

In case you fail to convert your resident savings account to an NRO account there are penalties involved, including: A fine of up to three times the amount in your bank account; or. A fine of ₹2 lakh if the amount is not quantifiable.

You should opt for NRO Accounts if you want to save your earnings from India in Indian currency itself. These earnings could include rent, income, dividend, sale of Property etc. You can open an NRE account with another NRI and close relative Resident Indian.

NRIs/PIOs/OCIs including Foreign Nationals, can send money to India through multiple options such as online money transfer services, wire transfers, cross-border UPI, IMO, and FCC/FCDD. You should choose an option that best suits your needs based on speed, cost, and convenience.

As per the Reserve Bank of India (RBI), you can continue to hold your international bank accounts, which you had opened overseas when you were an NRI. However, you may need to ascertain whether the regulations of the country, where you hold the account allows you to continue maintaining these accounts.

Joint: All transactions in the account must be approved and signed by all the account holders. If any one of the account holders dies, the account will be deemed inoperable, and the bank will pass on the balance in the account to the survivor.