Money is necessary for everyone and a saviour in unfavourable conditions. You should have enough funds to meet your requirements, even during emergencies. It is safer to remain prepared for most financial needs and save today. Whether you live in India or elsewhere, you always require money for meeting daily expenses.
A Non-Resident External or NRE Account is a rupee account to facilitate NRIs transfer funds to India. Funds generated overseas in other currencies get transferred to India in Indian Rupees in this account. You receive multiple benefits by opening this account:
Indian Rupee account
The Non-Resident External Rupee account is an Indian Rupee account. The initial funding generally happens through fund transfer from any other NRE or NRO Account you hold or by depositing foreign currency or traveller’s cheques if available.
Joint account
You can open and transfer money from the account, considering the NRE Account interest rates. Only NRIs can hold a joint account. Holding it jointly with resident family members is not permissible. The account holder can issue a mandate authorising a family member to operate the account in their absence.
Nomination facility
The NRE Savings Account also allows a nomination facility where you can repatriate both the principal and interest components. It enables you to access Savings Account, Current Account, Fixed Deposits, etc.
Deposit and withdrawal currencies
Deposit funds in foreign currency and withdraw them in Indian currency when you open an NRE Account. Another point is that the rupee account balances are subject to currency exchange risks.
Free from taxes
Taxation rules do not apply to the Non-Resident External account. You are exempt from wealth tax, gift tax, and income tax.
How to choose?
To choose the best NRE Bank Account, select a bank that offers service in the country of your residence. It can help when you need urgent customer support. Besides, opt for a bank that provides minimum account balance requirements and attractive interest rates on deposits in the account. These accounts work like regular Savings Accounts.
You get an international Debit Card for withdrawals. Learn about the charges and costs attached. In all, you must opt for ease of operations, such as simple documentation, a robust ATM network in your country of residence, customer-friendly mobile and net banking facilities, and an affordable money transfer solution. Compare based on these points while choosing the best NRI Account.
Documents required
When you open a Non-Resident Account in India, you must submit a valid passport, PAN Card or Form 60, proof of NRI statuses like work permit, visa, and valid Overseas Resident Card. Besides, give some of your recent passport-size photographs, initial payment cheque, and address proof. Attest them by the judge, the Indian embassy where you reside, or similar authorised personnel.
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