If you are a non-resident Indian (NRI) willing to remit, or invest your foreign earnings in India, you need a non-resident external (NRE) account. An NRE account allows you to maintain seamless transactions of your foreign funds in India without complications or restrictions.
That said, if you are wondering how to open an NRE account in India or what the essential considerations are for opening and operating this account, this article will help you navigate that path. Let’s begin.
How to open an NRE account?
Opening an NRE account is one of the most essential financial decisions you are likely to make when living abroad. Hence, ensure it’s a well-informed move. Some important considerations include –
Read More: RBI issues new directions on IT governance in banks, NBFCs effective from April 2024; check details
Research well and choose a reputable bank
While most banks offer the facility to open an NRE account, you must opt for a reputed bank to open this important account.
Among several essential aspects, you should evaluate the bank’s financial health, and you can do so with the help of these crucial ratios –
Capital adequacy ratio (CAR) – This showcases the bank’s available capital divided by loans. The higher the CAR, the better.
Non-performing assets (NPA) – This indicates how much of a bank’s loan is in danger of not being repaid. The lower the NPA, the better.
Return on assets (ROA) – It shows how profitable the bank is relative to its assets. The higher the ROA, the better.
Cost to income (CTI) – It shows how the bank is run efficiently. The lower the CTI, the better. You can find these ratios in the bank’s annual report or on trusted media websites who report on banks’ earnings every quarter.
Read More: Escorts Kubota To Invest ₹400 Cr In Greenfield Manufacturing Unit In Ghiloth, Rajasthan
Seek help from friends/relatives in India – When done alone, research on the right bank to open an NRE account may be a difficult task from abroad. In such a scenario, seek help from friends/relatives residing in India. Check out their reviews online and, if possible, talk to an online banker to get more information about the bank in which you wish to open this account.
Ask them about –
- The bank’s customer service
- Its pan-India presence
- Its technological prowess
- Ability to service customers in different time zones
It’s also a good idea to talk to resident Indians who have had an NRE account in the past; you can learn a lot from their personal experience.
Get the right documents
Documentation plays a vital role in the process of opening an account. Once you’ve zeroed in on the bank where you wish to open an NRE account, get the required documents ready and make the process hassle-free. You can find all the information on the bank’s official portal.
While the list of documents may vary across banks, the most common ones include –
- Identity proof, such as your passport
- Non-resident status proof, which could be your visa, resident card, Person of India origin (PIO) card, etc
- Overseas address proof, which could be your passport, driving licence, latest utility bills, etc.
- PAN card or Form 60
- Passport-size photographs
Usually, banks will tell you if they need any more documents.
Read More: Gold and silver prices on November 8: Check latest rates in your city
Understand all the features of your NRE account
Make sure you have clarity on all the terms and conditions related to your account, including –
- Minimum balance
- Charges for non-maintenance of minimum balance
- The maximum amount you can withdraw or deposit, if any
- Debit card, internet, and phone banking charges, if any
- Regulation around taxation, if any
Knowing these will help you with transact smoothly and help avoid any penalties.
Autopay for easier transactionsFind out if you can set up autopay through your NRE account for –
- Paying utility bills in India
- Making investments in financial instruments like mutual funds
- Paying equated monthly instalments (EMIs) for loans
Autopay ensures convenience and timely payments of your commitments, helping you avoid late fees and penalties.
Opt for online banking services
Today, online banking is an absolute must. Ensure your chosen bank offers online banking as it allows you to avail a range of banking services on the go, such as –
- Fund transfer
- Account statement check
- Making utility payments
- Investing in various instruments such as mutual funds, stocks, etc
Have regular communication regarding your account
Make sure to communicate regularly with your bank regarding your account, as it facilitates financial affairs and compliance. Keep the customer care number saved in your phone book, and keep a tab on emails received for your account to make sure you are aware of any changes.
- How to operate an NRE account from abroad?
Set up internet banking
Internet banking services help you monitor your account from around the globe. You can check your account balance, transfer funds, make payments, and do much more from your NRE account. Make sure to opt for this facility when you open your account, so you are in command of your finances 24X7.
- Establish a secure communication channel
Operate your NRE account through secured networks. Avoid public/shared networks as they often lack the desired safety measures and can be easily hacked. To ensure safety –
- Keep your login details confidential and never share them with anybody
- Keep changing the PIN for internet banking regularly
- Never click on emails received from unknown persons
- Never share OTPs received over the phone or mail – banks will never ask for these
- Make sure your phone/laptop has a paid antivirus to keep your devices secure
Monitor all transactions, and in case of any unauthorised transactions, contact your bank immediately.
- Check if you can link your NRE account with the united payments interface (UPI)
While earlier you required an Indian mobile number to link your NRE account with UPI, you can now use your international number to do so. If you reside in any of these 10 countries, you can use UPI to send or receive money –
- Singapore
- Australia
- Canada
- Hong Kong
- Oman
- Qatar
- United States of America
- United Kingdom
- United Arab Emirates
- Saudi Arabia
Carry out regular transactions to ensure the account isn’t dormant
An NRE account is not very different from a savings account. If you don’t make any transactions for more than two years from the account, it will become dormant. While you can always activate a dormant account, the best way to keep your account active is to conduct regular transactions.
Manage your overseas finances with ease
While there are a few banks that offer you an option to open an NRE account, with IDFC FIRST Bank NRE Savings Account, you can manage your finances with utmost ease. From the ease of transferring funds to resolving any queries online, you can open this account and manage funds in Indian currency hassle-free.
Disclaimer – The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to it and does not guarantee, vouch for or necessarily endorse any of the content.
