{"id":11320,"date":"2019-05-05T00:32:55","date_gmt":"2019-05-04T19:02:55","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=11320"},"modified":"2019-05-05T00:33:03","modified_gmt":"2019-05-04T19:03:03","slug":"nri-banking-sbi-icici-hdfc","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/nri-banking-sbi-icici-hdfc\/","title":{"rendered":"NRI Banking – What’s on offer from Banks like SBI, ICICI, HDFC"},"content":{"rendered":"\n

Most NRIs though not physically residing in India but still have a lot of things to take care for here. It could be their dependent parents or relatives, property, business or investments. Banks like SBI, ICICI, HDFC, etc offer many services especially tailored for their NRI customers<\/strong> which enables them to take care of different situations in India and abroad. We discuss different banking services available to NRIs and how they can benefit from the same.<\/p>\n

NRI Saving & Current Bank Account:<\/h2>\n

For any monetary transaction in India, all NRIs should have a bank account. As per FEMA regulations, NRIs cannot continue the normal saving account<\/strong> that they had while they were resident Indian.<\/p>\n

There are two options:<\/p>\n

    \n
  1. NRO Account (Non\u2013Resident Ordinary)<\/strong><\/li>\n
  2. NRE Account (Non-Resident External)<\/strong><\/li>\n<\/ol>\n

    The easiest way out is to convert the existing savings account to NRO account<\/strong>. This account is to park funds remitted from overseas to India or funds from Indian sources<\/strong> and hence can be used to manage existing mutual fund investments, pension credit, rent, bill or EMI payments, etc.<\/p>\n

    Additionally, NRIs can also open NRE account.<\/strong> NRE account is also rupee-based account to park funds remitted from overseas to India.<\/strong> The advantage is they are freely repatriable which means both principal and interest earned can easily be transferred from NRE account to foreign currency without any restriction.<\/p>\n

    Both NRE & NRO accounts can be either Savings, Current Account or Fixed Deposit.<\/strong><\/p>\n

    \n

    Also Read:<\/strong> NRE Vs NRO – Which is the right account for NRIs?<\/a><\/p>\n<\/blockquote>\n

    NRE VS NRO Account:<\/h3>\n

    The table below shows the difference between NRO & NRE account:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
    Particulars<\/strong><\/td>\nNRE (Non-Resident External)<\/strong><\/td>\nNRO (Non\u2013Resident Ordinary)<\/strong><\/td>\n<\/tr>\n
    Who can Open Account?<\/strong><\/td>\nNRIs\/PIOs\/OCIs<\/td>\nAny person resident outside India<\/td>\n<\/tr>\n
    When can one open Account?<\/strong><\/td>\nAfter becoming NRI<\/td>\nWhile leaving India (even before becoming NRI)<\/td>\n<\/tr>\n
    Deposit Allowed<\/strong><\/td>\nOnly overseas income in foreign currency<\/td>\nIncome originating in India and overseas income<\/td>\n<\/tr>\n
    Joint Account<\/strong><\/td>\nIn the names of two or more NRIs. With a resident close relative on ‘former or survivor basis’<\/td>\nIn the names of two or more NRIs or Resident Indian<\/td>\n<\/tr>\n
    Repatriation<\/strong><\/td>\nFreely repatriable<\/td>\nRepatriated up to USD 1 Million in a financial Year with some restictions<\/td>\n<\/tr>\n
    Transfer-ability of Funds<\/strong><\/td>\nNRE to other NRE & NRO accounts<\/td>\nNRO to NRO account only. NRO to NRE accounts requires documentation.<\/td>\n<\/tr>\n
    Tax on Interest<\/strong><\/td>\nNo Tax in India<\/td>\nTaxable as per Income Tax Slab<\/td>\n<\/tr>\n
    TDS on Interest<\/strong><\/td>\nNo TDS<\/td>\nTDS @ 30.9%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    FD for NRIs:<\/h2>\n

    Other than the Saving or current account, Banks like SBI, ICICI, etc offer Fixed Deposit for NRIs. The FDs for NRIs can be of 3 types<\/strong>:<\/p>\n

      \n
    1. NRO FD<\/strong><\/li>\n
    2. NRE FD<\/strong><\/li>\n
    3. FCNR(B) FD<\/strong><\/li>\n<\/ol>\n

      We take a look at each type of NRI FD schemes:<\/p>\n

      NRO FD<\/h3>\n

      NRO FD is similar to normal bank FDs available to resident Indians. The deposit tenure can be from one week to 10 years and the interest rates are generally same as normal bank FDs. The interest received on this deposit is taxable as per applicable income tax rates. NRIs can take advantage of Double Tax Avoidance Agreement (DTAA) to reduce their tax burden.<\/p>\n

      \n

      Of Interest<\/strong>: Best NRO Fixed Deposit Interest Rates<\/a><\/p>\n<\/blockquote>\n

      NRE FD<\/h3>\n

      In case of NRE FD the tenure of deposit varies from 1 year to 10 years. The biggest advantage is the interest received is tax free in India.<\/p>\n

      \n

      Also Read:<\/strong> Best NRE Fixed Deposit Interest Rates<\/a><\/p>\n<\/blockquote>\n

      FCNR(B) FD<\/h3>\n

      FCNR (B) or foreign currency non-resident (Bank) are fixed deposit account where NRIs can make deposit in foreign currency<\/strong> remitted from income abroad. The maturity and payback too are in same foreign currency. FCNR (B) are denominated in a variety of currencies:<\/p>\n