Banking Accounts for Non-Resident Indians and Their Benefits
The eligibility criteria for opening such an account include conditions such as:
1. NRE Account
The non-resident external (NRE) account is used for transferring money earned in a foreign country to India. The funds in this account are managed in Indian rupees and the interest earned on funds is tax-free in India.
2. NRO Account
A non-resident ordinary (NRO) account is used for earnings from India and there is no barrier to conversion of currency. Deposits in such an account are maintained in Indian rupees but the interest earned is not tax-free.
3. FNCR Account
Foreign currency non-residential (FNCR) account allows NRIs to deposit amounts in foreign currency that is directed by RBI. This account helps them protect their funds from exchange rate risk and the interest earned is tax-free.
These accounts help NRIs manage their funds effectively and also earn attractive interest on their savings.