Before, everyone opened the same type of Bank Account, a Savings Account, irrespective of their banking requirements. This worked well before, but not now, as the banking and financial system is far more complex than it used to be. Hence, it is important that you now consider your banking requirements and open an account that’s most suitable to manage them to simplify your banking experience.

Several factors affect your banking requirements. Your citizenship status is one such factor. If you are a Non-Resident Indian, a Person of Indian Origin, or an Overseas Citizen of India, your banking requirements will be very different and more specific. Given this, you could consider opening an NRI Bank Account.

NRI Accounts are of two types: Non-Resident Ordinary and Non-Resident External Accounts. Both accounts possess unique features and benefits. Here are details about the opening and operations of an NRE Account.

About NRE Accounts

The NRE Account is a type of NRI Account. It is denominated in Indian Rupees. It lets you deposit your foreign currency in a secure manner in India. What’s more, you earn a competitive interest rate on your account deposits. This means your money keeps on working. Note that since the NRE Account is denominated in INR, your foreign currency deposits will be converted to INR at the prevailing exchange rates on deposits.

The interest earned from an NRE Account is 100% tax-free in India, allowing you to enjoy the earnings to the fullest. You also enjoy full repatriation with an NRE Account, ensuring you can readily send money back to your country of residence in your time of need. Through your NRE Account, you can access a wide range of financial products and investment options. This means you can easily take care of all your financial matters from your fingertips.

Opening an NRE Account

The procedure to open an NRE Account is very simple. You need to fill out the account opening form and submit a set of documents to open the account. You can do so by visiting the nearest bank branch or using online banking platforms. The second option is more feasible as it lets you open an account from anywhere at any time.

You can also choose to open NRE Account online jointly with another individual as long as he/she of Indian origin or nationality. The account opening procedure remains the same for joint account opening. You need to fill out the account opening form, and both account holders need to submit the necessary documents.

Operations of an NRE Account

You can operate a joint NRE Account with a resident Indian only on a former or survivor basis. Typically, you need to assign yourself or the other account holder as the primary account holder. The primary account holder will solely operate the Bank Account. The other account holder can operate the account only when the primary account holder dies.