Finance Wanted.

By Tushar Mathur

Here is some basic information of the various accounts that an NRI can hold in India.

The type of accounts:

1. Non-Resident External (NRE)
2. Non-Resident Ordinary (NRO)
3. Foreign Currency Non-Resident (FCNR)

NRE Savings Account

Whether you are a salaried employee, a professional, an entrepreneur or even a student, an NRE account is something that can benefit you immensely since it offers significant Advantages:

• Get higher interest rates
• Interest earned is not taxable in India
• Use any currency to credit the account.
• Maintained in Rupees, giving you a liberty to Invest in India
• You can always take the money back overseas, whenever you wish to
• Empowers your family to access your account anytime, anywhere in India
• You can maintain a minimum balance of Rs. 10,000; Some banks allow you to open a zero balance account

Almost every major bank in India today offers you the convenience of opening NRE Savings Accounts.

NRO Savings Account

An NRO Savings Account is the ideal choice for Non-Resident Indians who earn an income in India through rent, dividends, pension and so on. Since, they cannot deposit this income into their NRE Savings Account, an NRO Savings Account is best suited to them since it allows them to conveniently deposit and manage the local rupee, an ideal choice.

You can enjoy the following benefits with NRO accounts:

• Get higher interest rates
• Deposit your income earned in India into your account
• You can always take the money back overseas, whenever you wish to
• Empowers your family to access your account anytime, anywhere in India
• Maintained in Rupees, giving you a liberty to Invest in India
• Use any currency to credit the account

FCNR Account

These deposits can be maintained in 5 designated currencies i.e. U.S. Dollar (USD), Pound Sterling (GBP) and Euro, Australian Dollar (AUD) & Canadian Dollar (CAD). They can only be maintained in the form of terms deposits for maturities of minimum 1 year to maximum 5 years.

• Principal along with interest freely repatriable in the currency of your choice
• No Exchange Risk as the deposit is maintained in foreign currency
• Loans/overdrafts in rupees can be availed by NRI depositors or 3rd parties against the security of these deposits. However, loans in foreign currency against FCNR (B) deposits in India can be availed outside India
• No Wealth Tax & Income Tax is applicable on these deposits.
• Gifts made to close resident relatives are free from Gift Tax.
• Facility for automatic renewal of deposits on maturity and safe custody of Deposit Receipt is also available

I personally have an NRE account that I use to transfer my dollars that I spend in rupees when we visit India or when I buy my mutual funds. My account is with HDFC bank. And you really don't have to be in India to open and NRE account. You need to send them some documentation as mentioned below and you can easily open your NRE account.

• Photocopy of the pages of the passport containing passport details & personal details of all applicants.
• Copy of valid visa* / work permit
• One passport photograph of each applicant
• Mailing address proof Click here for list of documents accepted as mailing address proof.

  If you have already downloaded the application form, then:

  • All photocopies of the above documents to be attested by Indian Embassy or by Notary or by Banker overseas. If the documents are not certified then all documents need to be self signed or Self attestation letter has to be submitted along with one additional document.

  • One passport photograph of each applicant.

Who do you bank with in India?

Tushar Mathur:
Author of http://www.everythingfinanceblog.com and http://investmoneyinindia.com
Email: tusharm@gmail.com