NRI Banking – For all your Vital Transactions!

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NRI Banking – For all your Vital Transactions!
Words: 420 | Date: Tue, 15 Jun 2010

Having been a Non resident Indian you may still have to do a lot of financial transactions through your banking account. For those NRIs there are different type of bank account such as non resident external, foreign currency non resident and non resident ordinary(NRO).

An NRE savings account will offer you better interest rate. Be it a professional, student, entrepreneur/self employed or salaried class employee. You can create your savings account and earn interest which is not taxable in India. You can make use of any currency in order to credit in your account.

It also allows you to make investments in India. You can withdraw the money and still continue to have a zero balance account. Some banks would want you to have a minimum balance of 10,000.

The other account known as NRO savings account is meant for NRIs to save their income which they may earn in the form of rent, pension, dividends and interest from any other investment in India. This will also allow you to earn higher rate of interest. Any income earned in India will be saved in this account. This also permits your dependents back in India to access this account any time conveniently.

They are also allowed to make investment back at home. These are specially designed investment for non resident Indians. More and more NRIs are encouraged to make investments in India so that the country will have lot of their finances to roll out. Apart from investments they are also allowed to borrow loans to set up an industry in India or build a house. Investment in bank deposits and company deposits may be made by NRIs. They are subject to different rules; investments with and without repatriation facilities are permitted under the schemes. As of now, NRIs are permitted to make direct investment in partnership and proprietorship firms in the country.

Incase you have taken a home loan from Indian banks and you want to prepay your NRI home loan for any reason, the bank will ask for prepayment charges. The prepayment charges also vary from lender to lender. Usually around 2%, most lenders do not charge prepayment charges if they find that the borrower has prepaid the loan from his money. But, if you are considering refinancing of loan you will definitely attract prepayment charges.

You can always take the money back overseas, whenever you wish to from your savings account which you hold in India.
Kirthy Shetty, Platinum Author.
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