Can a NRI open a bank account in India?
If you’re a non-resident Indian (NRI) and you want to open a bank account in India, you may be wondering - can a NRI open a bank account in India? The short answer is yes, of course! What is more important what kind of account you can open. NRIs cannot open regular savings or current accounts in India. They have to open specially designated NR bank accounts that come in the following forms: NRE, NRO, PIS and FCNR. This article will show you how to open NRI account and what is the purpose of these accounts. There are many benefits of NRI account, and we’ll also look at what those are below.
Bank Account in your Local Country
If you are an NRI living abroad, you should definitely get a local bank account. Make sure your local bank account has easy remittances to India so you can easily send money to your NRI bank accounts. Many people forget about this step and end up wasting hundreds of dollars every year on transfer fees to their NRO or NRE accounts. Or you can use a service such as North Loop, which has integrated NRI banking along with US bank accounts and free remittances.
Credit: North Loop
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NRI Account Benefits
There are many NRI account benefits. Here are a few of the benefits of NRI Account:
- Critical Need - if you have income in India, or are planning on investing in India, you need an NRI account - there is no choice. As per Indian law, you will need these accounts to invest and deposit earnings.
- Tax Benefits - NRE accounts are tax-exempt by the Indian government. You don’t need to pay any tax on the interest and deposits - this is an effective way to get 100% of your NRE earnings into your pocket.
- Interest Earned - NRE and NRO accounts which are savings accounts offer competitive interest rates for your deposits. Over time, this interest can add up and help your savings!
- Invest in India - with an NRO account, you can invest in mutual funds in India. And with a PIS account, you can invest directly in bonds and stocks in the Indian stock exchanges.
- Spending in India - when you are visiting India, you can use your NRE or NRO debit card to pay for your expenses in India rather than having to use a foreign debit card
How To Open NRI Account
The NRI account opening process has, unfortunately, been extremely difficult for many years. Banks require you to either visit a branch, or if you are not in India, then fill out a number of paper forms, sign them, attach photographs and courier the documents to the branch in India. Or you can sign up for an North Loop NRI bank account - it takes 5 minutes to open NRI account anywhere in the world, with just a few clicks.
The difference between NRI and NRE
We usually get this question a lot! The difference between NRI and NRE is largely based on what they mean as words - an NRE account is a specific type of bank account, and an NRI is a person! So to recap the NRI and NRE account difference - there is none!
Difference between NRE NRO Accounts
The difference between NRI and NRE accounts, as we’ve discussed before is that an NRE account is part of the NRI banking family- along with NRO accounts, FCNR accounts and PIS accounts. You can read more about is the difference between the types of accounts, between NRI and NRO account here
North Loop NRI Banking Services
North Loop simplifies NRI account opening, letting you get an account in minutes! Zero balance, zero fees. Low interest loans for NRIs. Get access to the very best in NRI banking - sign up here