Introduction to NRI Banking

The 1990s were a time of great change for the banking sector in India – the Government set liberalization measures in motion. A few private banks got licensed to set up shop and changed the face of banking in India. In this section, BankandFinance.com goes over the introduction to NRI Banking in India and how it can benefit people of Indian origin living abroad. These private sector banks have contributed to growth in a phenomenal fashion and are known for being tech - savvy too. The banking sector has introduced a number of benefits to attract Indian customers, businesses and individuals living overseas to open NRI Bank accounts. By opening up an NRI account, customers can save money in an Indian bank account and get good returns on their money. Any NRI Bank in India gives people flexible investment options by helping them save money and also give back to their country. Foreign investments and deposits have helped the economy to grow and thrive.

NRI Banking provides benefits to NRIs by offering facilities like the international debit or credit cards, taking loans, making deposits, withdrawals, purchasing insurance policies and many others. Since many people migrate to different parts of the world for jobs, business opportunities and other reasons, they appreciate the facility of having a bank account to transfer money and also save in their Indian account.

Depending on requirements, one can choose from current accounts, savings, fixed or a recurring account. Use the check debit card to find out what the available balance in your current accounts or another account is. The account holder can also use funds saved for future investments such as opening an account with a forex trading brokerage to buy or sell the currencies online on a real time basis. Forex trading is a high risk high returns business which people can make money in, without having to travel.

Opening an NRE account can be facilitated based on rules and regulations set up by the government and the Reserve Bank of India with regard to NRI bank in India. Not all banks in India offer NRE account opening facilities to individuals; the NRI Bank has to have authorization from the Reserve Bank of India to be able to do so and provide different types of bank account such as checking account, savings account etc. suitable for individual needs.

Every NRI bank in India has to maintain funds of the account holder in both foreign and Indian currency. According to the Foreign Exchange Management Act 1999, the Government of India provides three types of different schemes to open NRI banking account in India such as:-

• FCNR (Foreign Currency Non Resident Account)
• NRE Account {Non Resident Rupee Account (External)}
• NRO Account {Non Resident Rupee Account (Ordinary) }

The individual applying for a NRI Banking account can get the full benefit of saving funds in any of the above listed schemes according to need and suitability of the account.. Use the currency conversion calculator to calculate amount in Indian currency. If one wants to open a joint account with an Indian citizen in NRI Bank in India, you should check with the bankaccount provider to see it is possible and even permitted. Individuals looking to put money long term in fixed deposits can choose the FCNR scheme for maximum benefits.

People can SBI Bank NRI account to get instant transfer of money from and to any other account. HDFC Banking in India provides NRE current accounts, NRO current accounts, NRO savings account and NRE savings account. The currency conversion calculator in bankandfinance.com gives people various options to calculate your funds from foreign to Indian currency from your bankaccount.

Benefits of taking NRO Account and NRE Account

• One can easily manage and save time in transferring to other current accounts with the help of quick transfer option
• NRI bank allows people to exchange of foreign currency to Indian currency and vice versa
• By opening a NRE account, one can easily transfer the funds to any other country
• All funds that are saved in the bankaccount of NRE current accounts can be money sent from any country/or from any other NRE account that is operated in India
• People can also enjoy the benefit of transferring funds from NRE account to NRO account
• Joint bankaccount can be availed by taking the NRE account where the joint account holder is an NRI

Account holders should get familiar with all the benefits of a NRI account. Compare benefits of taking the bankaccount from NRI bank in India and choose the most appropriate one to meet needs. Also check interest rates that are offered by the NRI bank according to your savings capability. Bank accounts can only be opened after submitting necessary documents that will verify the applicant’s age, residence, business and etc. Account holders get the benefit of transferring the funds to India using the wire transfer facility and fast click services from savings or current accounts. One can also repatriate money that has been saved along with the interest rates from your bankaccount from India and some of the principal and interest are tax exempt.