Can I keep my Indian bank account if I move abroad?

If you no longer reside in India, you cannot hold an ordinary bank account in the country. You will need to convert it into an NRO (Non-Resident Ordinary) account. You can also open an NRE (Non-Resident External) account after you move abroad. This account will hold your money in non-Indian currencies.

Do I need to close my bank account if I move abroad?

One of the first things you need to do when you start planning your move abroad is to get your bank accounts in order. Once your account has been reassigned, any interest earned will be repatriable after deducting applicable taxes. You should also close any bank lockers that you are not going to use.

What do you do with a savings account when you move abroad?

For an Indian resident moving abroad to settle, he/she can convert their resident savings account into a NRO (Non-resident Ordinary) account. By making the conversion, the non-resident can make deposits of their earnings in the NRO account from savings, investments, rent, etc., in the form of Indian currency.

Can NRI hold savings account in India?

Answer: An NRO (current/ savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India.

What’s the penalty for keeping savings accounts and deposit accounts as an NRI?

As per FEMA rules, the penalty for not converting resident account to an NRO account is up to 3 times the amount involved in it or Rs 2 lakh when the sum is not quantifiable. A daily penalty of Rs 5,000 will also be charged from the 1st day of intervention until the penalty is paid.

Can I convert my savings account to NRE account?

No.. you cannot convert your savings account to NRE account. But it can be converted to NRO account. You can open a new NRE account if you are an NRI.

Can I empty my savings account?

Savings accounts cannot be closed if the account balance is negative. Note that different banks will vary in their requirements for closing a savings account. With some banks, you may have to visit the local branch to request closure. It is more common that the bank asks clients to request closing in writing.

Is it a good idea to close a bank account?

Consumer Financial Protection Bureau. “What Is a Credit Score?” Accessed April 16, 2020. Consumer Financial Protection Bureau. “My Bank or Credit Union Closed My Checking Account.

Can I withdraw money from my NRE account in India?

Non- resident External account is abbreviated as an NRE account. These are Indian rupee accounts opened by NRIs in India. The main purpose of these accounts is that they enable the account holder to deposit money in foreign currency. The account holder can withdraw money from his/her NRE account.

Can I keep my NRE account after returning to India?

You cannot maintain your NRE account and NRE FDs when you are an RNOR. You need to convert your NRE account to resident account immediately upon returning to India. You need to convert these accounts to resident accounts within a reasonable period of time. The reasonable period can be assumed as 3 months.

Can a NRI hold a savings account in India?

How do I transfer my savings account to another country?

Savings account: If you are expecting some income to be generated in India, such as rent, dividend, interest, or others, these will have to be deposited into a non-resident ordinary (NRO) account. So, you need to convert your savings account to an NRO account. “Inform the bank about you moving to another country.

Should you keep your US bank account if you move abroad?

Even if you don’t plan to make yearly trips back to America, keeping your U.S. bank account might come in handy if you want to transfer funds to your friends or relatives back home. It’s a lot cheaper depositing money into another U.S.-based bank from an American account for your mother’s birthday than wiring money from abroad.

How can I send money back to India after moving?

If you want to send money back to India after moving, you will need to open a non-resident external (NRE) account. “You can open this account even before leaving the country, based on your visa and work permit.

How can I keep my bank account open if I move?

One way that you can easily keep your bank account open — or credit card for that matter — is by changing your account’s registered address to a loved one’s home. Using a relative’s address or your parents’ residence for your account will allow you to easily pay off bills and complete other transactions with your U.S. bank.