Opening an NRI Banking Account – The Steps to Follow and Documents Required

Indian citizens moving abroad have to assume NRI status. Such people have to consider several things, especially with regards to their finances before moving abroad. They also have to think about how to manage their Indian bank accounts, while they are remotely located. They are required to convert their resident accounts into NRI accounts. This way, they can avail NRI banking facilities and services and get access to their bank accounts in India. Here’s how you can open an NRI bank account. Also, find out the documents you need to open the account.

Opening an NRI bank account – the steps to follow

Here’s how you can open your NRI bank account

Select the bank to open your account or convert your resident account

The Reserve Bank of India does not authorize every single Indian bank to offer NRI services. As such, you need to find out RBI authorized banks offering NRI accounts before you can open the account. In case your bank is authorized by the RBI, then you can easily convert your resident account into an NRI account. You just need to fill a form and apply for the status change of your account from regular to NRI.

Choose the type of account you’d need

Typically, you can open two main types of NRI bank accounts – the Non-Resident External Rupee or NRE account and the Non-Resident Ordinary Rupee or NRO account. The former type of account is one in which you can only deposit foreign currencies, whereas you can deposit both, INR and foreign currencies into the latter account. Note, that the sums once deposited into either account are converted into INR. Also, the NRO bank account is ideal for people who have dependents and investments in India.

Consider the services provided by your bank

While opening the NRE or NRO account, you must also consider the services provided by the bank you choose. You must especially consider the services before converting your ordinary resident account to NRI account. Check if you can avail services like internet and mobile banking, as well as loan and overdraft facilities. Also, consider the charges levied for international transactions. If you wish to invest in the Indian share market, you must also check if the bank provides Demat accounts and depository services, etc., before you open or convert your account.

Submit the necessary documents

You must now submit the required documents to open or convert your account and avail NRI services. Most banks today allow you to open/convert your account online (before moving abroad) and submit scanned, soft-copies of your documents. If you open the account after you’ve moved overseas, you need to visit the Indian or Foreign Embassy in your country of residence to get the documents attested.

You have to provide the following documents

The account opening form, duly filled

Two recent passport size photographs

Photocopies of your Indian and Foreign residency ID proof and address proof documents

A photocopy of your passport, and the page on which your visa sticker is pasted

The bank verifies your details

Once you’ve submitted your documents, the bank verifies your details and opens or converts your regular account into an NRI account. You can then avail NRI banking facilities and get access to your Indian bank accounts.