Non Resident Indian Account (NRI Account)
A non-resident Indian (NRI) is an Indian citizen who is currently residing in a foreign country. The reasons for living outside India range from education to employment to business. A Non-Resident Indian (NRI) can open two kinds of accounts in India – a non-resident rupee account (NRE Account) and a non-resident ordinary rupee account (NRO Account).
1- Non Residence External Account (NRE 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 account holders are persons of Indian nationality or origin. Also Read: Gulf Rupee – The Gulf Version of Indian Rupee
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. Read: Saudi Arabia plans to open new consulate in Bengaluru
2- Non Residence Ordinary Account (NRO Account)
NRO accounts may also be opened or maintained in the form of rupee denominations 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. Similar: How to open a new account with Al Rajhi bank online
Account Opening Procedure
It is now possible to open an NRI account online. The following are a few of the most reputable banks that offer online NRI accounts.
- HDFC NRI Account Opening from Saudi Arabia
- Open SBI NRI account from Saudi Arabia
- Opening ICICI NRI Accounts from Saudi Arabia
You can easily open an account by entering your personal information on the bank’s website (or by downloading the account opening form from the bank’s website). Once complete, print the page, sign it, and mail it to your local branch along with the required documents.
Once the application is processed, you will receive a checkbook and ATM card at your Saudi address by courier.
Once the account is operational you can deposit money from KSA. Check: Exchange Rate Saudi Riyal to Indian Rupees
Here are the important documents required for opening an NRI account
- Account Opening Form – Duly Filled
- Self-attested copy of Iqama
- Self-attested copy of the 1st and last page of your Passport (as an address proof and ID proof)
- Self-attested copy of the visa page of your passport.
- Passport Size Photograph
In some cases, banks may ask for additional documents like salary certificates and overseas address proof. etc.