NRI stands for non-resident Indian. NRI means a person having Indian citizenship or passport but prefers to live in some other country for studies, employment, or business purposes. There are many banks in India like the State bank of India, ICICI Bank, Bank of Baroda, and HDFC bank, granting the facility to Indians to open their accounts across the world. Further, these Banks are providing customized services for residents of India to join any Bank according to their needs.
Types of NRI accounts
An NRI can open three types of accounts in India while living in some other country. A person must fulfill all the documents and requirements claimed by the respective Bank.
- NRO (Non-Resident Ordinary) Bank Account
- NRE (Non- Resident External) Bank Account
- FCNR (Foreign Currency Non-Resident) Bank Account
NRO (Non-Resident Ordinary) Bank Account
This type of account is valid for only Indian Citizens. This means either you were NRI or before you were NRI. The terms and conditions of taxation for this account are as per the applicable slab rate. In this account, your money is saved in Indian Rupees.
NRE (Non-Resident External) Bank Account
This account is only for NRIs. This account is used to save money earned from overseas countries in Indian rupees. There is no tax deduction in this account. One can choose saving, fixed, current, or Term deposit type in this account.
FCNR (Foreign Currency Non-Resident) Bank Account
This account is valid for only non-resident Indians. This is also a tax-free account. You can choose the type of account as fixed or term deposit. The balance is saved in different currencies according to the account holder’s needs.
NRI Account Opening Procedure
In India, many banks are working for NRIs to save their money in the form of remittance. However, the most demanding and reputed banks are as follows:
- State Bank of India (SBI)
- ICICI Bank
- HDFC bank
All these banks have official websites where you can get online forms for account opening. There you can get all the details about documents and applications required for submission. The documents should be attested by Notary Public/ Indian high Commission or foreign offices in Saudi Arabia. Some banks also provided the service by calling the applicant and guiding the person about all the terms and conditions for this purpose.
Although the documents required by each bank vary according to their policies but the basic and mandatory documents demanded by every bank are as follows:
- The first thing is your IQAMA.
- The second document is your valid passport.
- The next document verifies either Indian or overseas addresses.
- The other document claiming the NRI status.
- There must be a valid copy of the Indian PAN Card or Form 60.
- One copy of your Salary Slip
- Your recent passport size photograph.
Above all, the banks have taken initiatives to save the money earned by their natives from other countries to improve their GDP rate. It also increases the economy of a specific country. In addition to that, many banks are developing policies according to the need of NRI’s.