Summary – Explore the essential guide to NRE account rules for NRIs. Understand eligibility criteria and benefits and know when an account qualifies for NRI banking in India. Discover the right way to open an NRE account, the documentation, etc.
Imagine you are an NRI (Non-Resident Indian), eager to invest your hard-earned money back home in India. You might know about NRE (Non-Resident External) accounts, but are they the right choice for you?
Before anything else, first, understand what an NRE account is and when an account qualifies for the same.
Discover NRE account rules, the documents required to open an NRE account, and who can open one to simplify your finances.
An NRE account is a savings account designed specifically for NRIs. The NRE accounts are for the customers to deposit their earnings earned outside India. It is denominated in Indian Rupees (INR), meaning that the funds you deposit in this account are maintained in INR, regardless of the currency you deposited.
The Reserve Bank of India (RBI) governs these accounts, and they offer several advantages to NRIs, . NRE account can be held jointly with another NRI or a resident relative on former or survivor basis.
If an NRI returns to India and becomes a resident, their NRE savings account is converted into a regular resident savings account.
To open an NRE savings account, you must meet one of the following eligibility criteria –
There are certain essential NRE account rules and benefits that you should be aware of –
According to the Foreign Exchange Management Act (FEMA) guidelines, NRIs cannot have regular savings accounts in India to deposit their foreign income. Hence, they must open an NRE account to conduct transactions here.
This account allows you to deposit your earnings made outside India in Indian rupees. Moreover, it enables you to freely repatriate all your money back to your country of residence, which would not be possible without this account.
An NRE account allows NRIs to invest in India. It provides easy access to funds for your authorised family members here, making it a suitable option if you want to support your family back home.
As per NRE account rules, there are several benefits, but these accounts also have some limitations you should be aware of –
Here are the following documents required to open an NRE account –
Park your overseas earnings in an NRE account and enjoy the countless benefits it offers. Not only is the interest earned tax-exempt, but a few banks, such as IDFC FIRST Bank NRE Savings Account, also provide you with the flexibility of moving funds between India and overseas effortlessly.
Opening an account is a breeze, whether in India or overseas. Plus, get a feature-rich Visa Signature Debit Card with multiple benefits, completely free.
Don’t miss out on this exclusive opportunity to make the most of your overseas earnings!
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