“A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain.” ~ Robert Frost
My previous article on how to open an NRI Bank account has most of the information that you need to get started, and to open an NRI account. This is a follow-up and complement to the information in that article. To maintain the continuity of the topic, there is some overlap between the two articles.
Home-work: Make sure to think it through ahead of time. Do you really need an NRI account ? While opening an NRI account provides many conveniences, it also increases the paper-work. It is one more account to track with possible complications to tax situations in multiple countries. So, evaluate your needs; open an account only if your business or personal situation demands it. Keep it simple!
Frequently asked Questions (FAQ): Most of the NRIs have many basic questions to start with, including:
1. What are different types of NRI accounts available?
2. Who can open an NRI account?
3. When can we open a joint Account and what are the nomination options?
4. What are the different loans permitted?
…..and so on.
Now, I can right a long-winded essay here and cut and paste all the info from banks and their internet sites. But, to keep it simple and to use reliable information, let us cut all the middlemen to go straight to the source.
So here it is, straight from the horse’s mouth - from the Reserve Bank Of India. This table of FREQUENTLY ASKED QUESTIONS on ‘Features of various Deposit Schemes available to Non-Resident Indians (NRIs) is all you need for most of the answers to your questions. Read it through, it is very detailed, well put together and to-the-point with no fluff.
Regulation Info:Make sure to look at the notes at the bottom of the FAQ table on the RBI website as well. The notes (a) through (f) provide more information on the regulations relating to the various deposit schemes available to Non-Resident Indians (NRIs) along with links to the information. Most of the banks also list the related RBI notifications on on their websites.
Final Thoughts: Money related decisions are better when made without any rush, compulsion or spur of the moment triggers. So, think it over and see if make sense for you to open an NRI account based on all the information. You can bookmark this post for future reference and comeback at later time after giving more consideration to it.
Now, you have it all. Between this article and the previous post on NRI Bank Account, you have all the key info on your finger tips; how you use it is totally up to you and your banker !
Finally, share your thoughts or experiences of opening an NRI account by commenting below, so that we can all learn from each-other.