As you move overseas and reside there for a period, your residential status changes. You become a Non-Resident Indian, which impacts your finances significantly. Managing your income in India requires you to modify your banking practices. This primarily involves opening an NRI Account. Banks offer this account specifically for Indians residing abroad to access funds in India.
You get two options – Non-Resident External and Non-Resident Ordinary Accounts. They let you manage foreign and Indian income, respectively. If you have both sources of revenue, you may open both accounts. The opening process for NRO online is simple. It involves minimal formalities and gets done within minutes. However, staying prepared is essential. Follow these tips:
Research
You get all the information required on the banks' websites. This makes the account opening process easier. Besides that, it gives you the power of comparison. Although the banking services are similar, banks' interest rates and requirements differ. Go through them by visiting their respective websites. This lets you make an informed choice while opening the NRO and NRE Account.
Gather documents
After finalising the right bank, going through the documentation requirements is helpful. This way, you get to arrange the paperwork beforehand. Most banks have a similar protocol for KYC documentation. They ask for your passport-sized photograph, Identity proof, PAN Card, address proof, etc. Additionally, you must submit the overseas address, work permit, passport copy, etc. Banks use this to verify your NRI status.
Leverage Digital Banking
Thanks to digitisation, you need not visit India to open an NRO Account. You get to complete the formalities from overseas. You do this either through the bank's website or application. Either way, you go through easy steps, and the account gets opened quickly. Also, maintenance is easy through banking apps. Everything happens smoothly from checking balances, making investments, subscribing to financial products, and making transfers.
Understand regulations
The Reserve Bank of India has specialised terms for regulating the NRO Account in India. You must follow the same to avoid inconvenience. This involves converting your existing resident Savings Account into NRI Bank Account. If not, the bank takes the necessary actions. It is better to take control of your hands instead. Besides, understand the rules regarding account maintenance, taxation, repatriation, etc., for smooth operation.
Decide nominee
You get the right to appoint a nominee for NRO Bank Account. However, only one nominee is permitted per account. You choose your close relative, spouse, or guardian for the same. They can either be a resident or NRI. Understand your purpose before making the decision. If you want someone from India to access your account, choosing a resident is ideal. They perform tasks on your behalf, avoiding any hassles you may face.
