NRI Bank for all your Financial Transactions!
NRI Bank for all your Financial Transactions!
Despite of being away from home, you may have to carry out necessary financial transactions. To be able to do this at ease you must have an NRI bank account.
Non resident external account, Foreign currency non resident and non resident ordinary are three different bank accounts required by a non resident Indian. Non resident external account should be held compulsorily by all non resident Indian students, employees, entrepreneur, salaried or otherwise to deposit or withdraw cash. On the other hand, if you are generating income through rent, dividends, interest rate, pension, you will need a non resident ordinary type. This is important for those who have made investments in pension plans, have a buy to let land, invested in mutual funds in India.
If you want to have term deposits you must hold a FCNR account. These allow you to have them in various currencies such as U.S. Dollar (USD), Canadian Dollar (CAD), Euro, Pound Sterling (GBP) and Australian Dollar (AUD).
In a nutshell there are:
Non resident external
Foreign currency non resident
Non resident ordinary
Based on what type of financial transaction you are going to have select the type of account. Make sure, if you have a certificate deposit and have mentioned a particular term period, you better stick to that. If not, you may have to pay up penalties. Always, check out on what would the penalty be in case you were to withdraw cash before it maturity period. Soon after you have considered it, sign up for a maturity period according to your convenience.
There would not be any foreign exchange risk as a FCNR account is maintained in a particular foreign currency you wished for. Certificate of deposit is considered no risk form of investment. Besides this, you can also invest in mutual funds, debentures, shares, national certification etc.