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 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.
Interest rates banks are free to determine the interest rates of savings and term deposits of maturity of one year and above. 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.
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Repatriation Not repatriable except for the following: i) current income ii) up to USD 1 (one) million per financial year (April-March), for any bonafide purpose, out of the balances in the account, e.g., sale proceeds of assets in India acquired by way of purchase / inheritance / legacy inclusive of assets acquired out of settlement subject to certain conditions.
Currency Account holders are exposed to fluctuations in the value of INR to the extent of the interest amount. Interest rates banks are free to determine their interest rates on savings deposits under Ordinary Non-Resident (NRO) Accounts: How to register with eMigrate system
Account Opening Procedure
Nowadays NRI account opening process is very Simple, most of the banks offer online account opening felicity, SBI, HDFC bank, ICICI Bank, PNB, Federal Bank are some examples.
You can simply enter your personal details (also 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 successfully processed the application, you will receive the Cheque book and ATM card for 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 1st and Last page of Passport (As address proof and ID proof)
- Self-Attested Visa page of Passport
- One Passport Size Photograph
In Some Case, Banks may ask for additional Documents like Salary Certificate and Overseas Address Proof. Etc.
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