NRIs – Non Resident Indians can now enjoy online NRI banking services various top notch banks in India. The two most popular bank account for NRIs these days are:
1. NRE Bank Account: NRE Stands for Non Residential External Account.
2. NRO Bank Account: NRO Stands for Non Residential Ordinary Account.
Both these accounts are saving type account for NRIs living around the globe, and they can be opened in both individual and joint status.
NRE Bank account provides you a repatriable facility. This means any investment from this account would be subjected to repatriation of funds back to the country in which the non resident Indian is residing. For example if an NRI, PIO or an OCI uses such an account to invest 5 lacs in Indian mutual fund, and happens to generate a capital gain of Rs.2 lacs over a period of 2 years. Then the NRI has all the right to take back the principal along with the profit back to his foreign country where he is residing.
NRO Bank account does not provide repatriation facility. However in certain cases the principal along with the capital gains can be remitted outside of India, but for that special permission needs to be taken by the RBI – reserve bank of India.
Besides such account, there is one more account which is becoming popula among the NRIs is the FCNR account. FCNR stands for Foreign Currency Non Residential Account, such type of an account can be open by an NRI where in he can keep his deposits in a foreign currency without getting them converted into rupees.