A number of resident individuals move abroad due to various life events such as education, business, etc. which may be for months and years, but…
What about the Indian bank accounts held?
In such events, the resident individuals who are now NRI have numerous questions such as Is it mandatory to update the residential status in the bank accounts?
Shall they keep the account or closure is the best option?
Can funds from an Indian bank account be remitted to a foreign bank account?
To know the answer to your questions, do continue the reading…
- It shall be noted that upon the change in the residential status of resident individuals to NRI, a normal Indian account cannot be held and continued.
- Immediate action to continue or close the bank account is required to be taken by the individual.
- The person shall close the bank account, in case the same is not required for their operations.
- In case, the individual needs an account in India, then intimation about the change in the residential status to the concerned bank shall be given.
- Continuation to the bank account with the Indian residential status may call upon the violation of FEMA laws.
- The bank will convert the said bank account to the accounts permitted to be opened, held, and maintained in India by NRIs.
- The account which can be held by NRI in India are-
- Non-Resident (Ordinary) Account Scheme (NRO)
- Non-Resident (External) Rupee Account Scheme (NRE)
- Special Non-Resident Rupee Account (SNRR)
- Foreign Currency (Non-resident) Account (Banks) Scheme (FCNR)
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