How To Transfer Funds To An NRO Account?

Funding and finance are the critical aspects of living a peaceful life in any part of the world. Without sufficient funds, it becomes challenging to meet essential requirements such as housing, food, clothing, utility bill expenses, and others. Money helps people live a life they desire and allows them to access all the luxuries and amenities without any financial constraints. They are free to explore the world and fulfil all their demands and aspirations.

An NRO account is an abbreviation for a Non-Resident Ordinary account that allows NRIs to fulfil their banking needs while they are away from India. They enable account holders to receive funds within as well as outside India. Such accounts help them when they also need to receive regular funds from India. The sources of income include dividend income, investment income, rental income, etc. received through normal banking channels. If one is responsible for holding equity investments within India, the other must take care to provide the account as the default bank account for receiving dividend credits.

The utilization of the NRO bank account balance has no restrictions concerning withdrawing funds within India. If individual wishes to repatriate funds outside India, the principal funds can be transferred only up to specified limits. However, the interest earned can freely repatriate outside India. They allow flexibility when allowing joint operations with a resident Indian, unlike other accounts, which enable joint operations only with another NRI. Individuals can also opt for joint ownership with the parents and dependents in India while staying abroad.

How to open the account?

Individuals can open an NRO account by filling the application form providing all the details and submitting it to the bank online. After the submission, enter the mobile number along with a convenient time for the bank representative to contact and arrange for completing the required formalities, including funding details, undertaking the KYC compliance, etc.

Convert existing regular savings account into NRO accounts if the residential status has later changed into a non-resident. Submit a written application to the bank, stating the facts, including a change of residential status. The bank may require a copy of the passport, details of the new residential address outside India, along with documentary evidence for KYC compliance. For joint accounts, both the applicants must submit their KYC documents separately to the bank.

How to transfer funds into the account?

An NRO online account is flexible in accepting foreign currency remittances as well as rupee transactions. Individuals can transfer funds into it from any foreign bank account or any bank account within India. With the flexibility of joint operations and receiving the rupee credits, NRIs can apply to open the account conveniently using digital media.

What Is Investment Banking? What Are Its Benefits?

 Investment banking is about managing investments for a bank’s client towards whom these facilities are directed. The individuals who can avail of the investment banking services are HNIs, corporates, and the Government for planning and managing large projects, saving time, and money by identifying the risks associated with the project before moving forward.

They are highly specialised segments within the banking operations which help raise the capital and offer financial consultancy facilities concerning large, complicated financial transactions. Such facilities include thorough investigation, analysis, and informed recommendations about how much the company is worth. Based on the results, the trained investment bankers determine whether to create the deal. 

Investment bankers further structure an optimal deal to check if the client is considering acquisition or merger or sale. Most of the investment banking services involve prime brokerage and asset management, which is in conjunction with their investment research businesses.

The services are broken down to bulge bracket, middle market, and boutique market. The benefits of investment banking services are –

• The services involve investing the client’s funds in other companies for creating more value.
• It helps investors raise funds by underwriting or by acting as an agent in the issuance of securities for conducting the acquisition, merger, or sale.
• A thorough investigation gets conducted to make sure every compliance is met for the client’s deal, thereby minimising the risk of failure or loss of invested capital.

Now, investment banking services are aplenty. They are as follows –

• Mergers and acquisitions
• Corporate finance
• Equity research
• Sales & trading
• Asset management

What other services do investment banking offers?

The investment banking services may include the issuance of securities, underwriting, sales and trading of derivatives, equity securities, and fixed instruments, currencies, and commodities, facilities.

• Issuance of securities: It means raising capital for the client or business and creating documentation for the Securities and Exchange Commission. It is a prerequisite if the company plans to go public.
  
  
• Underwriting: It is practically the investment bank standing guarantee for the loan which is given to a business or corporate individual purely for business purpose. Investment banking also includes IPO underwriting, which assures that they have investigated the company’s credibility and is good to invest.
  
  
• Sales and Trading: This aspect of derivatives is a highly specialised skillset that offers accurate data, and its analysis comes handy for gauging the market stock price and its potential to grow or fall. These skills allow traders to either buy or sell stocks for their clients.
  
  
• FICC facilities: It involves handling fixed income instruments such as currencies and commodities, which, unlike the stocks carry lesser risk levels daily. Also, the percentage of growth is steadier.

Essential Facts You Should Be Aware Of Concerning NRI Banking

 Most of the Indian banks nowadays offer NRI account to their consumers living overseas. NRIs have the option to choose between three basic accounts – NRE, NRO, and FCNR accounts. These accounts make it easier to manage your savings seamlessly and conveniently. However, since all NRI bank accounts come with different features and benefits, here are some facts you should be aware of.

Types of accounts

As an NRI, you can open four different kinds of NRI bank account. These are –

• NRE account
• NRO account
• FCNR account
• RFC account

Salient features

Before you do the NRI account opening, you must consider your requirements. The basic features include –

• You will need an NRE account if you want to park your savings in foreign currencies. The funds parked in the accounts and the interest earned on the same are freely and fully repatriable.
  
  
• If you are staying overseas but have investments and a good source of income, you need an account where you can save funds in INR. In such scenarios, you should open an NRO account. In such accounts, you can only repatriate the interest earned on the savings, according to RBI limitations. Also, you need to pay TDS on the savings parked.
  
  
• If you hold enough savings in foreign currencies, you can open an FCNR account and earn decent interest rates on them without worrying about the currency fluctuations.
  
  
• If you seek to return to India at a later point and park the foreign currencies in the NRI savings account, you can open the RFC account for eliminating risks associated with currency fluctuations.

Opening of account

According to the NRI services, most prominent Indian banks allows the consumers to open their NRI account online. You can visit the preferred bank website, select the type of account you seek to open, fill the form, and attach documents. Some banks may ask to provide proof of the NRI status, which you get from the Indian Embassy of the country you are living in. You can also open this account by visiting your preferred bank with the essential documents whenever you visit India. While most banks offer these services, you should check if the bank has an RBI authorisation and the necessary license for dealing with foreign currencies. Open such accounts irrespective of the international country you reside in.

Facilities available

As an NRI, you can save your foreign earnings in any of the mentioned NRI bank account. You can conduct different transactions. Like with most of the accounts, you can NRI net banking facility which helps you do a range of online transactions. For instance, you can easily send funds to your family in India or make fixed deposits out of the savings through internet banking. You can seamlessly transfer money from one account to other and pay for the expenses in India or overseas through net banking.