Is it illegal for NRI to have savings?
As per the Foreign Exchange Management Act (FEMA) guidelines, an NRI cannot have a savings account in his or her name in India. You must convert all your savings (money earned abroad) to a Non-Resident External Account (NRE) or Non-Resident Ordinary (NRO) account.
Which bank is best for NRI?
10 Best NRE Savings Accounts for NRIs in 2020
| Bank Name | Interest rate (%) p.a. |
|---|---|
| ICICI Bank | 3.50% to 4.00% |
| HDFC Bank | 3% to 3.50% |
| SBI Bank | 2.70% |
| Bank of Baroda | 2.75% |
What is NRI savings account?
👉 For more insights, check out this resource.
An NRE (Non-Resident External) savings account is Rupee denominated account which can be opened to park your income earned overseas. You can deposit your foreign earnings in this account and earn completely tax free interest. Park your foreign earnings. Tax-Free Interest. Funds fully repatriable.
Can NRI open savings bank account in India?
Getty Images FCNR accounts can be opened only in form of term deposits of 1 to 5 years. A non-resident Indian (NRI) is an Indian citizen or a person of Indian origin residing outside India. NRIs can maintain bank accounts in India in the form of rupee or foreign currency accounts.
👉 Discover more in this in-depth guide.
What’s the penalty for keeping savings accounts and deposit accounts as an NRI?
As per FEMA rules, the penalty for not converting resident account to an NRO account is up to 3 times the amount involved in it or Rs 2 lakh when the sum is not quantifiable. A daily penalty of Rs 5,000 will also be charged from the 1st day of intervention until the penalty is paid.
How long can you keep money in NRE?
Forex Facilities for NRIs/PIOs
| Particulars | FCNR (B) Account |
|---|---|
| Foreign currency risk | Account holder is protected against changes in INR value vis-Ã -vis the currency in which the account is denominated. |
| Type of accounts | Term deposits only. |
| Period of fixed deposits | For terms not less than 1 year and not exceeding 3 years |
Can I have 2 NRE accounts?
No, NRIs can only open one PIS account. However, they can open multiple NRE savings bank accounts.
What is the minimum balance in NRI account?
The NRI Account Minimum Balance in SBI is Rs. 3,000/- for metro/urban branches, Rs. 2,000/- for semi urban areas and Rs. 1,000/- for rural branches.
What are the benefits of having NRI bank account?
Opening an NRE account will allow you to:
- Send your overseas funds to India and hold the funds in Indian Rupees.
- Freely repatriate funds without any restrictions.
- Easily invest money in Indian investment instruments.
Can I transfer money from my savings account to NRE account?
You cannot transfer money to a NRE account from a savings account in India. However, you can transfer money from NRO to NRE account. You can also transfer money from one NRE account to another.
