NRI Banking Archives – बैंक India — Indian Banks News & Tutorials

NRO vs NRE Account: What’s The Difference and Which is Better?

Jan 21, 2015 Rajeesh Nair 0

In the last post, I provided information about opening a NRE or NRO account in India while you are abroad. However, the procedure of opening a NRE or NRO account is same, many NRIs always get confused about which is the better among the two. Basically, it depends upon your specific needs and requirements. Understanding the basic features and benefits of both these accounts, a NRI could choose either one of them for his or her savings account in India. The main reason NRIs opt for a NRE or NRO account is to maintain a Rupee account in India. Maintaining a rupee account in India helps the NRIs to repatriate overseas earned money back to India as well as to keep India based earnings within India. To get these benefits, there are two options available for a NRI: 1) Non-Resident Rupee (NRE) account and 2) Non-Resident Ordinary Rupee (NRO) account. To get a proper understanding, let’s check out the differences between NRE and NRO accounts: Difference between NRE and NRO accounts: Repatriation: You can repatriate unlimited funds (both Principal and Interest earned) from NRE account whereas there is a restriction after USD 1 Million net including applicable taxes in a […]

How to Open a NRE or NRO Account in India for NRIs?

Jan 16, 2015 Rajeesh Nair 2

The major concern that troubles a lot of NRIs is to find an effective way to transfer money to India as well as from India in some cases. There are many different options available to send and receive money from abroad but not all of them are highly effective and some are too costly to afford. Even if they find the best option to send money to India from abroad, it is very difficult to maintain a Rupee account in India. Hence, the Government of India has introduced two options for NRI to open a bank account in India – NRE or NRO account. Both NRE and NRO accounts can be used to transfer money via savings account as well as NRIs can also opt to open a fixed deposit account, or buy mutual funds or stocks in India. How to open an NRE or NRO Account? Opening an NRE or NRO account is a complicated process but not a tedious one if you follow the steps mentioned below: 1. Get in touch with the Bank Of course, it is the first and foremost step to contact the bank if you want to open an NRE or NRO account in […]

Understanding The Benefits of NRE Account to Send Money Back to India

Jan 14, 2015 Rajeesh Nair 1

Of the many other concerns, the most important one for NRIs is sending money back to India. Although many NRIs have settled in the foreign countries, there are individuals who regularly send money back to India to their parents, family or for investment. However, these NRIs fail to maintain a Rupee account in India while they send money back to India. To overcome these problems, Government of India have come up with an option of opening an NRE (Non-Resident External) account for NRIs. As per the Foreign Exchange Management Act (FEMA), there are no specific limits or restrictions on the most remittance sent by NRIs back to India. Hence, NRIs can send any amount of money to India instantly without any trouble. Let’s know more about NRE account in detail: What is an NRE Account? NRE account is a kind of savings account is ideal for any NRI to repatriate funds with interest rates to India. Basically, NRE account aids in repatriating funds that is earned in foreign countries. The account also helps an NRI to transfer your earnings to India without much trouble in the most secure way possible. NRE account helps NRI to maintain their foreign currency in […]