NRI banking: your questions answered

An NRI account is an Indian bank account for a person living outside India. The main types are NRE (for money earned abroad), NRO (for income earned in India) and FCNR(B) (foreign-currency deposits). They are set up under the Foreign Exchange Management (Deposit) Regulations, 2016.

An NRE account holds money earned abroad, in rupees; it is freely repatriable and its interest is tax-free in India while you are non-resident. An NRO account holds income earned in India, such as rent or pension; interest is taxable and repatriation is limited. See NRE, NRO and FCNR accounts explained.

You can receive and hold money in India legally, pay EMIs and bills, invest, and (from NRE and FCNR accounts) send money back abroad freely. NRE and FCNR interest is tax-free in India while you are non-resident.

Yes. Once you become a non-resident, your resident savings account should be re-designated as an NRO account. Tell your bank in writing with proof of your overseas status.

Most large Indian banks let you open an NRE or NRO account online from abroad. You usually need your passport, visa or residence permit (for example an Emirates ID), proof of your overseas address, PAN and a photo; some banks ask for attested copies. Several Indian banks also have branches or representative offices in the UAE and Singapore.

Yes. All of them offer NRE, NRO and FCNR accounts that can be opened online from abroad, with their own documents, minimum balance and fees. Compare these on each bank's website before choosing. KLICK NRI is not a bank and does not open accounts.

It depends on what you need: an NRE account for overseas earnings you may send back, an NRO account for Indian income, and ideally the account with the bank that will take your home loan EMI. Compare fees, minimum balance and online service.

It varies by bank and account type, and can change. Check the bank's current schedule of charges; some offer zero-balance or salary-linked variants.

Interest on NRE and FCNR(B) deposits is tax-free in India while you are non-resident. Interest on NRO deposits is taxable in India, and tax is usually deducted at source. NRE fixed deposits usually have a minimum term of one year. Rates differ by bank; check the bank's own rate page.

A fixed deposit of 1 to 5 years held in a foreign currency such as US dollars, so you avoid rupee exchange risk. Principal and interest are fully repatriable.

An NRO account can be held jointly with a resident relative on a former-or-survivor basis. An NRE account can be joint only with other non-residents.

Lenders usually debit the EMI from your NRE or NRO account by standing instruction. Paying from NRE funds or inward remittance helps later if you want to send sale proceeds abroad. See repaying an Indian loan from overseas.

Yes, within the limit of up to USD 1 million per financial year from NRO balances, after tax is paid. Banks usually ask for Form 15CA and, where applicable, Form 15CB.

No. Indian income such as rent, pension or dividends must go into an NRO account. An NRE account is only for money earned abroad.

Yes, at banks that support it, using an NRE or NRO account linked to an international mobile number from a growing list of countries that includes the UAE, Singapore and Australia. Check with your bank.

By bank transfer or a licensed remittance provider through normal banking channels. Compare exchange rates and fees, and keep the remittance advice; it proves the money came from abroad.

Your current Indian income (such as rent, after tax) plus up to USD 1 million per financial year from the balance, subject to tax compliance and Forms 15CA/15CB.

Some Indian banks offer credit cards to NRIs, often secured against a fixed deposit and linked to an NRE or NRO account. Terms vary by bank.

You can usually appoint a resident mandate holder or power of attorney holder to make local payments from your account. They generally cannot send money abroad or open new accounts on your behalf. Rules vary by bank.

Banks usually ask for a PAN. Without one, some accept Form 60 for certain accounts, but tax on NRO interest may then be deducted at a higher rate.