Steps to Convert Resident Savings Account to NRO Savings Account (2024)

FAQs

Steps to Convert Resident Savings Account to NRO Savings Account? ›

You can convert your saving account to NRO account by logging in to internet banking. Follow the path: Login -> Customer Service -> Service Request -> Click on convert your SB account to NRO Account.

Can I transfer money to NRO account from India? Yes, you can transfer money to an NRO account from India. As an NRO account is a regular bank account, you can transfer money to it from other Indian bank accounts, such as a resident savings account or another NRO account.

As per the FEMA guidelines, there is no penalty for not declaring your NRI status. However, you must either close your existing savings account or convert it into a Non-Resident Ordinary (NRO) savings account as soon as possible. Failure to do so may result in legal and financial penances.

2 : Can I convert my existing Resident Indian Savings Bank account with SBI into NRE / NRO Savings Bank account using this online application facility? Ans : No, you cannot convert your existing Resident Indian Savings Bank account into NRE / NRO account with this facility.

This means that it is "illegal" to hold a resident savings account after getting an NRI status. As per the law, the NRIs are mandated to convert their resident savings account to an NRO account to continue their financial transactions in India.

The duration to convert your existing FYERS account to an NRO Non-PIS account largely depends on the KYC (Know Your Customer) status of the NRI. Typically, the conversion process takes between seven to 10 business days.

One of the major disadvantages of an NRO account is the cap of USD 1 million on the repatriation of funds. Moreover, the interest income of an NRO account is also subject to taxes.

With an NRO Account, you are free to repatriate or transfer the interest you earn on the principal amount deposited. You can also transfer the principal amount within specified limits. As per rules, you can transfer up to USD 1 million in one financial year post payment of applicable taxes.

Among the compelling reasons to consider converting to an NRO account are the ease in banking transactions, potential tax benefits under the Double Taxation Avoidance Agreement (DTAA), and adherence to the Foreign Exchange Management Act (FEMA) regulations.

Significant specifications for holding a NRO account

Since NRIs are not allowed to hold resident savings accounts and can only do this jointly with resident Indians, it is mandatory that NRIs should intimate the bank to convert the resident account to NRO account in case they become the survivors of such accounts.

Can I change my savings account to NRI account? ›

As per the Foreign Exchange Management Act, an NRI cannot have a savings account. If your resident status has changed to Non-Resident, you must convert the existing savings account into an NRO account to manage income earned in India. To transfer foreign income to India, you must open an NRE account.

NRO account holders can repatriate up to USD 1 million per financial year out of the balances in their NRO accounts. However, this is allowed after applicable taxes have been paid in India, and a clearance has been obtained from a chartered accountant in the form of Form 15CA and 15CB.

HDFC Bank allows conversion of your existing Resident account to NRO account by simply emailing the required documents to the Branch via your register email id.

I request bank to re-designate my account to NRO account & confirm that all the details provided herein by me are correct. I have also understood and agree to abide by provisions of NRO account, FEMA 1999 and attendant tax implications.

NRO account holders can also transfer foreign currency into an NRO account, which will be converted to Indian Rupees or INR.