Facilities Available to NRI Account Holders

The Chief regulatory bank in India, the Reserve Bank of India, is constantly creating means and ways to make banking more and more convenient for bank account holders. The NRI banking category is also extended a wide range of benefits and facilities that makes it easy for Non-Resident Indians to manage their funds, in both, their Non-Resident Ordinary Rupee (NRE) as well as their Non-Resident External Rupee accounts (NRE). Here are the facilities you can get with your NRI bank account.

1. Internet Banking facilities

NRI internet banking is one of the most basic facilities you can get with your NRE and NRO savings accounts. This is the most important and fundamental facilities available to NRI bank account holders because it can help them easily manage their bank accounts in India while residing in a country, thousands of miles away. With the click of a few buttons, you can order cheque books and bank debit and credit cards, create fixed deposits, make market investments and assign nominees and so on and forth through the internet banking facility.

2. Fund transfer facilities

Banks recognise that Indian residents may be based in any country across the globe and may still have financial obligations towards their family or businesses in India. This is why NRI banking services also entails easy and quick fund transfer facilities. You can easily send funds from your NRI bank accounts to regular as well as other NRI accounts through net banking. Typically, you can transfer sums of various international currencies such as EUR, GBP, JPY and different dollar currencies like USD, AUD, CAD, and SGD into NRI bank accounts. Apart from net banking, sums can be transferred through different mediums such as Western Union Money Transfer, Money Gram and Xpress Money, to name a few. However, you need to check if your bank provides these money transfer services. Thanks to digital banking, funds are credited into the beneficiaries’ accounts within just a few hours.

3. Loan and overdraft facilities

Say you wish to purchase a car or a home in the foreign country you are based in, but are in need of a loan to facilitate the purchase. You can easily apply for a loan against the sums parked in your NRI bank accounts. If you have a fixed deposit with your bank, you can also apply for overdraft services. Moreover, applying for the loan or overdraft facilities does not include robust documentation or application processes. You can do it easily through the already available NRI online banking facility.

4. Depository services facility

If you find the Indian investment market more profitable than the investment market of the country you are living in, you can always avail the depository services facilities offered with your NRI bank account. Banks provide depository facilities which make it possible for you to invest in mutual funds, shares, government bonds and different kinds of money market instruments available in India. Once again, you can use your NRI net banking account to make your investments.

5. FCNR facilities

Once you’ve saved enough money, you can also think of utilising the FCNR NRI services provided by banks. You can create a fixed deposit in foreign denominations without worrying about currency fluctuations. The applicable FD interest rate applies throughout the FCNR deposit tenure and you don’t stand to incur a loss even if the price of the foreign currency falls upon maturity.

Final word: So, if you are planning to move abroad, ensure you open your NRI banking account before moving. Some banks also allow you to open the account online through digital banking.

4 Advantages of Investing in Equity Funds

The investment market is full of opportunities. Investors can choose from a wide range of securities that can help them reach their financial goals over specific investment horizons. For most investors, mutual funds remain their preferred investment instruments. Among the various kinds of mutual funds available in the investment market, equity mutual funds are a popular choice. These funds typically aim to generate higher returns for investors. The fund manager invests in shares of companies with different market capitalisation. Here are 4 advantages of investing in equity based funds.

1. Equity based funds are professionally managed

When it comes to share market investments, it is best to invest in securities managed by experts in the field. The great thing about equity linked mutual funds is that they are managed by professional fund managers who know the ins-and-outs of the investment market. Such managers study the market on a daily basis and make investments by predicting market fluctuations. They also refer to real-time data as well as past-performance reports of funds before making any investment decisions. As such, you can rest assured that your money is in safe hands when a fund is managed by a reputed, professional fund manager.

2. Investing in equities can lead to capital appreciation

One of the most basic reasons why investors prefer to invest in equity linked mutual funds is that it has the potential to appreciate the capital invested. An equity based fund is one of those rare funds that provide returns that can help beat inflation. As it always happens in the stock market, if the price of the stock rises, it automatically results in capital appreciation. If you make well-informed investment decisions over a good period of time, you can truly create a good corpus over time, by strategically investing in equity based funds.

3. You can benefit from portfolio diversification

A diversified investment portfolio is crucial if you wish to mitigate the risks associated with share market investments. This is a great benefit you can get form investing in equity savings schemes. By investing in equity based funds, you can spread your investments over in different sectors, which can help reduce the risks associated with losses on investments in future. In the event of market volatility and under-performance; those stocks that are out-performing can make of for losses incurred by the under-performers. This helps minimise market risks and losses on your overall investment portfolio.

4. You can liquidate your investments whenever you like

The great advantage of investing in mutual funds is that they can be liquidated easily. Since equity oriented funds fall in the general category of mutual funds, this liquidity benefit is associated with them as well. You can easily get back your corpus in your savings bank account when you invest in equity based funds. It is possible to redeem the fund (partially or completely) at any given time; especially when you find yourself facing a financial emergency. Moreover, you can invest in these funds through SIPs, which you can stop anytime. Pre-term investments are credited to your account in a week whereas matured funds are deposited within 3 days.

Final word: Equity funds produce higher and better returns than both, fixed deposits and debt funds. However, the returns earned by investors, largely depends on the performance of the company. Since these funds have the ability to provide higher returns, most investors, prefer investing in them. However, equity based funds are ideal for investors with medium-to-high investment appetites. If you consider yourself a conservative investor, you should stick to investing in debt based mutual funds.

Essential Facts About NRE Accounts That You Need to Know

As an Indian moving abroad, you need to open an NRI account. The right account can help you manage your savings in India as well as those earned in the foreign country you have moved to. You can choose between two types of NRI bank accounts – NRE and NRO savings accounts. Both accounts come with their own set of benefits and you can open either of these accounts or both of them. In this article, we have highlighted some essential facts about NRE bank accounts. Read on.

NRE account meaning and purpose
A Non-Resident External Rupee or NRE savings account is a special type of account designed for NRIs. This is a foreign currency account. This simply means that you can deposit different types of foreign currencies that are authorised by the Reserve Bank of India. However, since this is essentially an Indian account, the foreign currency parked into the account is immediately converted into INR. The bank applies the currency conversion rate of the specific day on which the sums are deposited into the account.

Eligibility criteria for Opening the account
In order to open an NRE savings account you should be either of the following:

• A Resident Indian Citizen moving abroad
• An NRI or a PIO (Person of Indian Origin), as per the FEMA definition
• A seafarer of Indian origin or nationality, who is employed by an overseas shipping company
• A Government Employee from India, holding a diplomat passport
• An Indian student pursuing higher education in a foreign country

Note that if you are an Indian citizen currently residing in countries like Bangladesh, Nepal, or Pakistan, you need to get prior approval from the RBI to open any NRI bank account.

Currencies you can deposit
You can deposit a wide range of currencies in your NRE savings account. Earlier the RBI allowed NRIs to only park basic currencies such as American Dollars, Euros, Great Britain Pound Sterling and Japanese Yen. However, today, NRI can deposit several other currencies which include Australian Dollars, Canadian Dollars, New Zealand Dollars, Singapore Dollars, Swiss Francs, Swedish Krona and Danish Krone.

Different types of account you can open
The accounts you can open as an NRI are more or less similar to those that you can open as a resident Indian bank account holder. For instance, you can open both, savings as well as current NRE accounts. You may also open a recurring deposit, in which you can deposit a fixed sum of a particular foreign currency, although this facility is not provided by all banks. Similarly, you can open a fixed deposit account, widely known as a Foreign Currency Non-Repatriable Account Deposit or FCNR deposit. However, in case of NRI bank accounts, there is no provision for salary or zero balance accounts. In case, you may need to maintain an average amount of ₹75,000 or its equivalent in foreign currencies.

Repatriation
All NRE accounts are fully repartaible accounts. This means that you can freely and fully repatriate both, the principal amount deposited as well as the interest earned on deposits.

Final word: NRE bank accounts can be opened jointly, but only with another NRI, who may serve as your Power of Attorney. Some banks allow you to open NRE accounts online. An NRE bank account can prove incredibly beneficial if you move to a foreign country where the value of the currency is higher than INR. For instance; a saving of USD $200 converts to over ₹14,000, at today’s currency conversion rates. This accounts for a huge saving and can help you create a corpus at a much faster rate.

Factors To Consider While Installing A Mobile Banking App

Usage of mobile banking apps is growing as it provides ease, flexibility, and speed while processing the transactions. Most of the people in India are doing away with traditional banking and adopting online banking.

Almost every private sector banks and PSU banks have a mobile banking app to do banking transactions on the go. It removes the requirement for a computer, laptop and physical visit to the bank to do banking transactions. Once you install the app on your smartphone, you can carry out all banking transactions as per your convenience.

Consider the following factors while installing mobile banking apps –

Simple to use

One of the factors to consider while evaluating a mobile net banking app that it should be simple to use. They should be user-friendly and easy to use. The navigation must be uncomplicated and have concise labelling.

Secure

Security should be on the list while assessing mobile banking apps. They must have security with two-factor authentication. If possible, banking app should run biometric authentication.

Multiple payment alternatives

The best app should have various payment options such as NEFT, IMPS, BHIM UPI payment, and QR code payment. It facilitates payment using the mobile app quickly.

Conventional facilities

Mobile app should offer conventional banking facilities such as card block, cheque book request,  PIN generation, balance inquiry, ATM card issue etc.

Biller details

The app should have a feature of biller registration and remembering biller or beneficiary details while doing a transaction. All transactions via the app should be smooth and free.

Track finance

The app should have the feature to let you track your finances effectively. It is advantageous if the app gives a dashboard view showing your income and expenses.

Notification and alerts

All alerts and notification must get promptly updated in the mobile notification centre. The mobile app should have a facility to turn off notifications.

Suggestions for using the app:

Using mobile banking app provides ease and convenience, however, it has its own security risks. If you are using an online banking app here are few ways that will surely help to secure yourself from threats –

Update your mobile banking app

Always have an updated version of the app with new features, bug fixes and security fixes. You should keep it updated as and when new version is available in the market. It is a good idea to give the app permission to install the latest updates automatically.

Do not use a public Wi-Fi network

The public Wi-Fi network is risky as it might be infected with a hidden virus that can access valuable information from your device. Thus, use public Wi-Fi network while accessing mobile net banking.

Avoid storing or sharing your login credential

Avoid storing or sharing your login credentials such as username, password or pin in the handset. Saving login details while logging to the app is a big no. It will lead to significant security threats.

Use of biometric

It is sensible to make use of biometric login security. It assists in securing the mobile banking app from being misused.

Clear data regularly

Ensure to clear data stored in the application regularly. It will prevent leakage of sensitive information. However, once you clear data, it will also remove the settings for the application, and ask you to reset all settings.

Do not save sensitive information

You should not keep any confidential information in your banking apps such as credit card or debit card details, CVV or net banking password in your mobile app.

NRI Banking - The Essential Facts You Should Be Aware Of

Today, most Indian banks offers special NRI banking services to their customers living in foreign countries. Non Resident Indians or NRIs can choose between two basic NRI bank accounts –NRE accounts and NRO accounts. These accounts make it easy for you to manage your savings seamlessly and conveniently. However, since all NRI bank accounts come with their own set of features and benefits, here are some essential facts about NRI accounts that you should be aware of.

Types of accounts you can open
As an NRI, you have the option to open 4 major types of NRI banking accounts. These are:

• Non-Resident External Rupee or NRE accounts
• Non-Resident Ordinary Rupee or NRO accounts
• Foreign Currency Non-Resident Bank Deposits or FCNR accounts
• Resident Foreign Currency Accounts or RFC accounts.

Basic features of the accounts you can open
Before you open any of these NRI banking accounts you should consider your requirements.

• You would require an NRE account if you wish to park your savings in foreign currencies. The funds parked in NRE accounts and the interest earned on it is freely and fully repatriable.
• If you are living abroad but have investments and sources of income in India, you will need an account in which you can park your savings in INR. In such a case, you should open an NRO savings account. For NRO accounts, you can only repatriate the interest earned on savings, as per RBI limitations. Also, you have to pay TDS on the savings parked in the account.
• If you have enough savings in foreign currencies, you can open an FCNR deposit and earn good interest rates on it, without worrying about currency fluctuations.
• If you wish to return to India at a later date and park your foreign currency savings in it, you can open an RFC account in order to eliminate the risks associated with currency fluctuations.

Opening the account
As a part of NRI services, most prominent banks in India allow their customers to open NRI bank accounts online. You can simply visit your preferred bank’s website, select the type of account you wish to open, fill a form and attach the documents. Some banks may even ask you to provide proof of your NRI status, which you can get from the Indian Embassy of the country you are living in. You can even open this account by visiting your preferred bank with the necessary documents, whenever you visit India. While these services are offered by most banks, you should check if the bank has RBI authorisation and the necessary license for dealing in foreign currencies. You can open this account irrespective of the foreign country in which you are residing.

Services available
As an NRI, you can easily park your foreign earnings in any of the above mentioned NRI bank accounts and conduct a wide range of transactions. Like with most bank accounts, you get NRI internet banking services, which helps you conduct a wide range of online transactions.  For instance, you can easily send money to your family in India or make fixed deposits out of your savings by utilising the internet banking facility provided with your account. You can seamlessly transfer funds from one account to another and pay for your expenses in India or abroad through your net banking account.

In conclusion, you must consider your requirements and the type of services available before you open any of the above mentioned accounts. Ensure you select a bank offering NRI banking services so that you can easily conduct a wide range of transactions from any corner of the world.

4 Reasons Why You Should Open An NRI Banking Account

Banking has become rather convenient today, whether you are a resident Indian or a Non-Resident Indian (NRI) living abroad. Today, you can access your bank account over your mobile phone screen or your desktop/laptop computer within seconds. Whether you want to open a savings, current or NRI banking account, you can do it all online. Not only this, you can even transfer funds easily. As an NRI, you can open NRE and NRO accounts and FCNR deposits, depending upon your requirement. Once these accounts are opened, you can access your funds from any corner of the world, rather easily. So if you are an Indian living abroad, here are 4 reasons why you should open an NRI bank account.

1. You can easily repatriate funds

As mentioned above, you can open Non-Resident Rupee External (NRE) and Non-Resident Rupee Ordinary (NRO) bank accounts as an NRI. Both these NRI banking accounts allow you to easily repatriate the funds parked in them. Just like a traditional bank account, you earn interest on your savings parked in NRE account, and both, the sums parked and the interest you earn on it; is freely and fully repatriable. In case of NRO accounts, you can repatriate the sums parked, but you need to pay the applicable taxes before doing so.

2. You do not need to maintain higher balances

Most banks offering NRI bank accounts in India have significantly reduced the mandatory minimum balance maintenance requirement. Just like a basic savings account, you do not need to maintain more than ₹10,000 as the monthly minimum balance in your NRI account. This proves extremely beneficial if you are earning sums in a currency that holds a higher value than INR. For instance, if you are earning in USD, your minimum deposit can be as low as approximately USD $150.

3. You get access to internet banking services

Just like with your regular savings and current accounts, you also get NRI net banking services. This way, you can easily send money to and receive money from your family in India. You can also open both, NRE and NRO accounts and transfer funds between the two types of accounts easily. Moreover, you can also maintain a foreign currency fixed deposits using the sums parked in NRE and NRO accounts and open these FDs via your internet banking enabled NRI account.

4. You can avail tax benefits

Opening both, NRE and NRO bank accounts come with their own set of advantages, with tax benefits being the most prominent reason why you need this account. However, you need to research about the various types of NRI banking services and accounts before you open one – especially the aspect related to tax benefits. The interest earned on your savings parked in NRE accounts and FCNR deposits accounts is tax-free in India, but you have to pay TDS (Tax Deduction at Source) on your NRO account savings as per the Income Tax rules in India. You also have to pay a small amount as tax if your wish to transfer funds from your NRO account to any NRE account.
Final Word: As is apparent, there are several advantages of opening your NRI bank account. From NRI internet banking services, to easy repatriability and opening accounts online, everything is possible. Modern day NRIs can easily and conveniently complete their banking transactions within seconds from anywhere in the world. You can easily send money to your loved ones, transfer funds from one account to another and even withdraw funds from these accounts whenever you need.

Protocols To Keep In Mind To Ensure Safe Online Banking

With the Indian e-commerce space expanding due to constant spree of acquisitions, more and more Indian customers are moving away from traditional way of shopping at stores to shopping online. This, along with demonetisation has led to a swift rise in the number of digital mode of payments in recent years. These include numerous forms of payments, such as net banking, debit/credit cards, mobile wallets, UPI, etc. This also calls for an increasing requirement of recognising on how to safeguard online payments.

While technology has made it simple for us to manage our daily expenses, every great innovation has drawbacks too. This wave of digital payments has also opened doors to risks of cyber theft as new users, and the less tech-savvy do not take all the adequate safety measures while using internet banking.

Lot of us tend to save personal financial information on various digital payment platforms for quicker payments. While it does make our lives easier, it also causes a severe security threat.

While doing transactions online, we are subject to various risks of scams such as – loss of money and financial data, phishing scams and identity theft. Since most of us now use net banking to make online payments, one must take safety measures to protect money, both offline and online.

Here are few rules to follow to ensure safety while indulging in financial transactions on the internet:

Secure website

Anybody can go through your letters from the mailbox outside your house. Similarly, anybody can sniff around your internet connection too, if logged into an unsecured website. And if someone scrutinises your connection for a long time, they can gain access to any data that you send and receive or have stored on that site.

For preventing this violation of security, most social networks, email services, etc. use a safe and secure protocol, called HTTPS. This security protocol is known as Hyper-Text Transfer Protocol over Transport Layer Security or HTTPS.  It means end-to-end encryption of any data that’s exchanged between website servers and you.

The easiest way to identify if the website is safe is to look for a green padlock icon in the left corner of the address bar. Also, look if it is “HTTPS” at the beginning of the URL in the address bar and not “HTTP”.

Dedicated email address

If you are a regular online shopper, it is ideal to create a separate email address just for online shopping. Keep this email account clean and uncluttered. This way if you receive any unsecure email, on your main ID, with dubious promotion offers, you can spot them right away.

Payment alert messages

In case, you do not have the SMS alerts facility active, we advise you should get it as soon as possible. The SMS alert facility will inform you of any bank account activity. Hence if any transaction does not get initiated, report to the bank immediately and cancel all your cards. If informed on time, your money is safe, and the bank will compensate you for losses, if any, as per RBI guidelines.

Avoid public computers and Wi-Fi

Never do any online banking transactions on a public computer such as the ones in cybercafé. Also, never use public Wi-Fi for financial transactions as they are unsecured networks. Anyone can join the network as there is no key or password to access it. Such networks can easily fall prey to hackers who can steal your details.

Remember these protocols while using your mobile banking apps as well.