NRI – Non Resident Indian
An Indian Citizen who stays abroad for employment/carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident.
A Non-Resident Indian (NRI) can open two kinds of accounts in India – a non-resident rupee account (NRE) and a non-resident ordinary rupee account (NRO).
1- NRE A/C (Non Residence External Account)
In this account rupee denominations can be maintained. The account can be opened in the names of two or more non-resident individuals provided all the account holders are persons of Indian nationality or origin.
The amount held in the NRE account is freely repatriable and you cannot send money by any other means except as remittance from abroad or transfer from another NRE account. NRE accounts may be in the form of savings, current, recurring or fixed deposit accounts. Such accounts can be opened only by the non-resident himself and not through the holder of the power of attorney.
Taxation accrued in interest income and balances held in NRE accounts are exempt from the Income and Wealth tax, respectively Currency Account holders are exposed to fluctuations in the value of INR.
Banks are free to determine interest rates on savings and term deposits. Interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits: Saudi Arabia Plans to Open New Consulate in Bengaluru
2- NRO A/C (Non Residence Ordinary Account)
NRO accounts may also be opened or maintained in the form of rupee denomination that could be in the form of current, savings, recurring or fixed deposit accounts. The account can be held jointly by residents. You can transfer money into an NRO account from any account – even other individuals residing in India can transfer money into an NRI’s NRO account.
Account Opening Procedure
Currently the NRI account opening process is simple, most of the banks offer online account opening felicity, SBI, HDFC bank, ICICI Bank, PNB, Federal Bank are some of the top banks in India.
You can simply enter your personal details on the bank’s website (also you can download the account opening form from the bank’s website). Once completed, take a print-out, sign it and send it to your local branch along with the required documents.
Once the application is processed, you will receive a cheque book and ATM card at your Saudi address by courier.
Once the account is operational you can deposit money from KSA.
Here are the important documents for opening a NRI account.
- Account Opening Form – Duly Filled
- Self attested copy of Iqama: Check Iqama Expiry date
- Self attested copy of the 1st and last page of your Passport (as address proof and ID proof)
- Self-attested copy of the visa page in your passport.
- Passport Size Photograph
In some cases, banks may ask for additional Documents like Salary Certificate and Overseas Address Proof. Etc.
