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Managing your finances while living overseas can be a challenge. That's where a non-resident Indian (NRI) account comes in.
If you're an Indian citizen living and working abroad for more than 182 days in a financial year, you can open one of these accounts to manage your money in India from anywhere in the world.
Once you become an NRI, let your bank know right away, as NRIs can't use regular savings accounts in India. If you're an overseas citizen of India (OCI), you can open an NRI account with proof of Indian origin or an overseas visa.
Your bank can help convert your account to an NRO account or open a new NRI account. Acting promptly helps avoid potential issues.
NRIs use this account to deposit their overseas earnings. NRE accounts are held in Indian rupees and can be funded through overseas remittances or transfers from other NRE accounts in India. The deposited amount can be freely transferred abroad without limits, and the interest earned is tax-free if the account holder:
NRO accounts, like NRE accounts, are held in Indian rupees. They let you receive income from sources in India, such as rent, dividends, or pensions.
While useful for depositing Indian earnings, NRO accounts have limits on transferring funds abroad under FEMA (Foreign Exchange Management Act) Regulations. Plus, any interest earned is taxable in India, as per the Indian income tax laws.
A mariner's account is created specifically for the needs of seafarers. Account holders can give their family members power of attorney to help manage the account and finances. They also get benefits like higher debit card transaction limits, better foreign exchange rates, no charges for ATM use abroad (for HSBC Premier customers), and more.
An FCNR account is a fixed deposit account held in foreign currencies like the US dollar, euro, or pound sterling. It's tax-free in India and allows free fund transfers abroad, but you can’t deposit money earned in India in this account.
This account is ideal if you want to keep your overseas savings in foreign currency, even after returning to India. You can convert the funds to rupees later when the exchange rate is favorable.
Learn more: FCNR account: Features and benefits
NRI accounts are for non-resident Indians and OCIs, including spouses of Indian citizens and those with parents or grandparents from undivided India.
If you have your documents ready, you can open an NRI sole, joint, or minor Personal Banking account online in just a few steps. You'll need:
Additional requirements may apply based on the account type. Learn more about opening an HSBC Premier account.
Yes, a Permanent Account Number (PAN) is mandatory for opening bank accounts (except basic savings bank deposit accounts), investing in mutual funds, and purchasing property above certain thresholds.
If you do not have any taxable income in a financial year, then you can submit Form 60 instead. This form must be refreshed annually. Without a PAN, tax on your interest will be deducted at a higher rate (20%) under Indian tax laws.
We've outlined 5 steps to opening an NRI account through HSBC:
You can now use your NRI bank account to make transfers within India. When using NRO accounts, there may be some restrictions for transfers outside India.
Get an immediate callback. Fill out the callback form and we'll phone you back to discuss your application.
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Note: The information provided in this article is for informational purposes only. You may consult professionals for specific guidance for the applicable Income Tax rules and FEMA Regulations, as these are subject to changes.
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