Faqs On An NRO Account

For non-resident Indians to manage their income, investments, and transactions in India, along with the ease of opening a Bank Account, banks in India offer numerous options. The Non-Resident Ordinary or NRO Account is one of the several accounts that assist NRIs in managing their income in India. Earnings may take the following forms:

●      Rent

●      Interest rates

●      Dividend

●      Stock investments

You can place the earnings mentioned into an NRO online. The sum is translated from foreign currencies to Indian rupees (INR).

What documents are needed?

All account holders should complete and sign paperwork when converting a resident account. You need identity proofs, NRI status proofs, foreign address proofs, and two pictures. The NRI completes the open NRO Account online form with equivalent KYC documents. Abroad resident proofs could be work details, student status, dependent visa status, or a copy of the foreign destination's resident permit.

The Indian embassy or Indian bank branch with an abroad affiliation certifies this proof. Banks also want documentation of foreign financial activity, such as a cheque issued on an overseas account or a Credit Card statement that is less than six months old.

Can you open NRO Accounts jointly?

You can open an NRO account only with an Indian resident. When you open one, it can be a better alternative for NRIs who desire to open a joint account with family members back home. It is a benefit compared to an NRE Account, which you can only open with another NRI.

What are the eligibility criteria?

Any Indian who has spent less than 365 days in India over the previous four years and at least 120 days outside India in a single year is considered an NRI. Anyone who meets such requirements is qualified to open NRI Account. Anyone who leaves India intending to work abroad will automatically lose their residential status and acquire NRI status.

What are the options under an NRO Account?

NRIs can either convert their existing resident account in India to an NRO account or open a new NRO Savings Account. NRI accounts require documentary confirmation that the account holder is an NRI as defined by the Indian FEMA Act.

Conclusion

An NRO account handles money through Indian income sources. Since an NRE account cannot meet your Indian financial demands, you should consider opening an NRO account. It enables you to continue handling your Indian finances without paying taxes. You can manage the money you make in India internally with the NRO Account.

Why Opt For Priority Banking Services?

Many private banks in India have followed international banks in providing specialised services to a specific set of priority customers. Their average balance in the bank or the banking relationship duration usually determines their eligibility. While some automatically get the status of a priority customer, others need to apply for it.

Priority Banking differs from Wealth Management. Wealth management service is concerned with providing first-class customers with customised services for all their financial needs, like investment advice and portfolio management. Preferential Banking provides the same banking services to priority customers at specialised rates or offering a particular convenience level.

Benefits

The Priority Bank Account offers tailored services to those who prefer premium access, like market insights, research reports, exclusive offers, and bespoke privileges. You get a dedicated relationship manager for assistance, eliminating the need to queue up for transactions. They take care of all your banking needs.

Other benefits of Premium Banking services include preferential remittance rates, higher interest on Fixed Deposits, free unlimited ATM withdrawals, etc. Additionally, enjoy exclusive entry to premium lounges at major domestic and international airports. You can also benefit from complimentary pick-up, drop-off, and meet-and-greet services from there.

Why become a premium customer?

Each individual and household has varied requirements depending on their financial situation, background, relation with technology, etc. Determine whether you need heavy banking services for your personal and professional needs or if it is only a small part of your financial life.  You can access Priority Banking services if your total relationship value is Rs. 5 lakh, which adds up to Rs. 30 lakh within six months of account opening.

The TRV includes the total of all accounts in a family, including the quarterly balance of all Savings Accounts and end-of-period Term Deposits, Investments, Insurance, and Mortgage Loans outstanding. 40% of the net balance of the Home Loan or Loan Against Property is a part of TRV computation.

Documents required

The documentation required for Preferred Banking customers differs according to their residency status. For instance, you must submit proof that you are an Indian resident, a Non-Resident Indian, or a Person of Indian Origin to get the most advantages from your Bank Account. If you think you need services repeatedly from your bank, consider a Priority Banking relationship.

You may also want an unlimited chequebook facility, which is unavailable to you as a regular bank customer. It is an option to enhance your banking experience and get exclusive benefits.

Final words

With the advent of Online Banking, the need for chequebooks, Demand Drafts, and physical bank visits has dramatically reduced. You can carry out most services by logging in to your account using the app on your smartphone. Your smartphone is the best ally whether you require emergency funds or need to transfer them to someone.

What Makes Debit Cards A Smart Banking Tool?

Plastic cards have replaced cash for decades now. This has also changed the banking system for many. Many do not rely on carrying heavy money to meet their daily purchases or payment needs. They need Debit or Credit Cards to withdraw or transfer funds from their Bank Account. The amount gets directly debited from the account. Owing to digitisation, its usage has become the new norm.  

Besides being a favourite, a Debit Card is also a practical way to transact. You need not go through the trouble of handling cash or fear losing them. A single card handles all your online and offline payment needs.

You can also link them with your Banking app or withdraw from an automated teller machine or ATM using the card. You can access innovative banking techniques when you have Debit Cards handy. Let us understand how it works smartly:

Swift transactions

With the card, you need not enter the bank credentials. Also, it requires minimal formalities to perform multiple transactions. Be it payments, transfers, equated monthly instalments, or withdrawals, every task is done instantly. If you use an ATM, you add the card and follow the on-screen instructions. As for automatic digital payments, link the card by entering its number and expiry date for single-click transactions.

Tracking

A significant portion of financial management is controlling your spending habits. This becomes challenging when you have no control over your expenses. You should have the plan to keep things in check. This is difficult with cash, as you need to track your payments manually. But you unlock trackability when you apply for Debit Card. This feature gives you access to transaction history, alerts, and bank statements.

Pre-paid payments

Unlike Credit Cards, debit directly happens through your Bank Account. This means you can access your funds electronically with the card. You need not borrow them to repay later. Hence, an online Debit Card is a prepaid fund source in your account. This enables you to bank with ease. You need not physically visit the branch to initiate transfers or receive funds.

Cashbacks & discounts

Banks incur lower overhead costs when you bank digitally. They save on staff payments, processing fees, administrative charges, etc. Hence, they reward you with discounts and cashback. This also sustains the competitive space as many banks have upgraded themselves online. Regardless of the motive, you can access perks during shopping, making payments, and settling bills through the Debit Card.

The contactless transaction has proven banking cards to be a boon in the industry. It saves your time and promotes convenience.

How To Boost Personal Loan Eligibility?

The coronavirus pandemic has proved the importance of financial planning and saving for the future. Whether paying for children’s education, re-establishing your business, or getting yourself out of a financial bind, you require enough money for everything. These days, if you are financially stable, you can conquer all problems without shortage.

A person must utilise their savings wisely. Instead of exhausting them, you can check Personal Loan eligibility at a bank and apply for it. It does not need collateral and is beneficial in assisting you in achieving various objectives. It is a popular solution for quick money. Therefore, improve your chances of eligibility and approval by following these steps:

Work on credit score

A credit score is a three-digit figure indicating how well you have managed credit. Banks use it to assess the risk of defaulting and learning about your financial discipline. A 750-point score or greater is ideal for easy approval. Determine your credit score and improve it by repaying your debts on time. Aim to keep your credit utilisation ratio low. A good credit score improves your chances of eligibility and gives you the lowest interest rates.

Maintain employment record

Banks want evidence of your repayment ability towards the debt to give you the best Personal Loan interest rates. They look for consistency in your salary history to see if you can sustain a financially stable future. A candidate staying in the same company for a longer duration is preferable over those changing jobs.

Longer repayment term

Banks assess your present monthly repayment responsibilities when analysing your application. If the monthly obligations total half of your net monthly income, including the instalment amount, you have a higher chance of approval. If your monthly instalments are a sizeable sum, choose a longer term to lower equated monthly instalments on the Personal Loan EMI calculator.

Check the eligibility

Before applying, use a Personal Loan eligibility calculator to see if you will most likely avail of it. It allows you to conduct a soft search that will not leave a mark on your credit record. You can apply online once you have discovered a fair deal. After applying, the money may reflect in your account soon.

Apply occasionally

Filling out too many Loan applications gives the impression that the borrower needs money desperately and reduces your credit score. It also paints a negative picture of your financial status. You should apply only when needed. Always research well and check the schemes available online to get an idea.

Where to apply?

With many banks becoming technologically advanced, you can select the desired Loan scheme from the Banking app. It is a free-to-download application that enables you to perform various banking activities using your internet-enabled mobile phone. The application lets you carry out banking activities from your mobile. Once downloaded, you can conveniently conduct several types of transactions and check Personal Loan eligibility.

5 Simple Tips For Completing The Personal Loan Process Successfully

You have lots of ambitions in life that you wish to achieve step-by-step. Firstly, you learn to educate yourself, manage your responsibilities, have a family, start earning, and finally save for retirement. Amidst this circle of life, you come across certain situations where you require immediate financial assistance.

A Personal Loan lets you manage urgent expenses and save the day. It is known for its versatility and multi-purpose usage, like paying for weddings, home renovations, medical emergencies, or children’s education. Sometimes, it also reduces the burden of financial dues or enables you to plan for additional expenses. Let us discuss simple tips to simplify the process:

Credit score

Remember, all options require borrowers to have a good credit score. Also called a CIBIL score, it is a three-digit number showing your creditworthiness. A credit score usually ranges between 300 and 900 and is derived using your credit payment history across various Loans over a period. Most banks ensure your score is above 700 points with repayment capacity. With a high CIBIL score, you can quickly proceed with the application.

Eligibility

Banks have varied eligibility criteria for Personal Loans. However, the standard requirements include credit score, age limit, employment type, three-month bank statement, and minimum salary or income. You must check and compare the options before finalising the scheme and shop around for better ones suiting your income and eligibility criteria.

Borrowing options

Every individual’s financial requirement differs. Therefore, most banks offer multiple borrowing options. For instance, you may need money to buy a car or gold jewellery, start a business, or buy a house. You find specific options for these, but opting for a multi-purpose Loan without collateral is the best choice.

Affordability

You generally repay the amount in equated monthly instalments. Banks want to know your repayment capacity and affordability before approving your application on the Banking app. When checking your affordability, keep your debt obligations in mind. Plan your monthly budget for clarity using the Loan calculator and save money for repayments. Remember to pay the amount on time to increase your credit score and reliability.

Documentation

The approval of your Bank Personal Loan application depends on the relevant documentation you need to support the information provided. You can check the app and prepare the documents before applying. You also get Instant Loans to encounter emergencies, such as medical expenses. It is an entirely paperless procedure with flexible repayment options.

Points to note

It is safer to apply online as it saves time, commute, and effort. However, remember to compare the Personal Loans interest rates since they directly impact the repayment amount. The higher the interest, the higher the amount payable.

Conclusion

You get easy access to money with these financial products. You need not worry about exhausting your savings since these Loans get instant approval and disbursal within a few hours.

What Benefits Do ELSS Funds Offer?

Equity Fund investors often lose their funds in the market as they are unaware of the taxation rules. It significantly lowers their investable income. When you have less investable income, your returns get affected. For avoiding this, most investors opt for an Equity-Linked Saving Scheme. ELSS falls under Equities. It invests most of the funds in equity-related products. It is ideal for those who wish to avoid paying taxes.

Besides tax benefits, ELSS offers other benefits too:

Lock-in duration

Usually, good Mutual Fund portfolios are better for long-term investments. But they do not come with lock-in periods. This affects your investment growth considerably. Under the ELSS Mutual Funds, your funds are secured for at least three years. It even lets you continue investing for more than that. For example, say you invested Rs. 500 and got 50 units on March 31, 2022. In this case, your lock-in period will end on March 30, 2025.

Moreover, your investments get exempted from taxes during this period. This lets you maintain healthy investment behaviour.

Long-term value

The lock-in period extends beyond three years for ELSS Funds. Investors can continue their investment growth for a long time. They can also redeem them if need be. Since this scheme offers tax exemption, you may reap better returns.

Saving discipline

The minimum amount under ELSS is as low as Rs. 500. It is also accessible to those who have just started earning. This empowers them to turn their savings into investments. Over time, they develop a healthy financial habit.  

New investors

A Mutual Fund Investment may sound intimidating to new investors. But since they have little market knowledge, they need a not-too-complex scheme. For such investors, ELSS is ideal. It provides the freedom to invest without needing to bear taxes. Also, it lets them invest in both Equity and Debt Funds.

Higher returns

ELSS generates higher returns. It may boost your investments significantly within lesser time. Unlike other investment schemes, it does not allow partial withdrawals. This facilitates the growth of investments. It will enable it to increase with time. Also, the returns in an ELSS are tax-free. So, you automatically reap higher returns.

Upper limit

Here, the investor could invest as much as they want. There are no maximum limits for investing. This broadens your accessibility to big investors.

Options

ELSS comes in different forms: growth, dividend, and dividend reinvestment. Under the growth scheme, the investor gets gains only during redemptions. Under a dividend scheme, the investor indeed receives timely dividends. Under the dividend reinvestment scheme, investors could reinvest dividends. Depending on your financial situation, you could choose between these three and invest offline or through the Mutual Funds app.

Perks Of Opening An NRO Account

When an individual shifts to another country, they find it slightly tricky to manage the income generated in India. Their regular resident Bank Account does not let them deposit foreign currency and convert it into INR. In times like these, they need a Non-Resident Ordinary Account.

An NRO Account is a type of Non-Resident Indian banking facility. It allows global Indians to manage and park the money earned in India. That way, they systematically house their funds from India and overseas. The following are the perks:

Smooth repatriation

The account provides the holder with easy repatriation. This implies they can transfer up to USD 1 million per financial year through International Remittance. Moreover, the interest accrued is taxable at only 30%, deductible at the source.

Minimal balance requirement

Most banks issue minimal balance requirements, as low as INR 10,000. This helps the holder utilise the funds in their account worry-free.

Easily accessible

This NRI Account is readily available online. You only need to fill out an application form and upload relevant documents. Once verified, you will receive your account information almost instantly.

No risk of exchange rate fluctuations

Funds in the account are not subject to exchange rate risks. Since it maintains your money in INR, you need not worry about conversion losses.

Investment & loan facilities

You can easily invest in term deposits, Mutual Funds, etc., through transfers from the NRO Account. This helps you earn from your savings in the resident country. You may also use these investments as collateral to get loans. The banks charge lower interest rates as they get secured through the account. This way, you get swift and smooth financial assistance during emergencies.  

Joint account option

Any NRI or Indian resident (related to you) is allowed to open an NRO Account in India with you. This option gives your close relative access to your account.

DTAA

Although NRO Accounts are not tax-exempt, the account holder can avoid paying double taxes. They need to opt for the Double Taxation Avoidance Agreement or DTAA. The Reserve Bank of India has entered a DTAA with several countries, intending to discard the need for double tax payments.

Interest on Fixed Deposits

When you opt for an NRO Deposit, you earn interest on the funds in the account. This multiplies the money in your NRO Account.

Ideal place to park Indian income

The account is a viable option to save your foreign earnings and park income earned in India. You can easily access the account to manage your Indian expenses whenever you are in the country.

Trading facility

Some banks allow you to link the NRO Account to a PIS Account to trade in Indian stocks listed on a recognised stock exchange. PIS stands for Portfolio Investment Scheme, an initiative that facilitates NRIs' trading activities.