Non-Resident Indians (NRIs) can have specially designated bank accounts in India through which their earnings, investments, and dealings are efficiently operated abroad. Such NRI bank accounts are subject to the regulation of the Foreign Exchange Management Act (FEMA) and serve as a facilitative means between the financial system in India and that of the resident country of the NRI.
Key Points To Know:
- NRIs are not allowed to have normal savings accounts in India. Holding a normal savings account is illegal under FEMA and can invoke penalties of up to INR 3 lakh or daily penalties.
- NRIs can open and operate these accounts remotely or through Indian bank branches or through the international branches of the bank in foreign nations.
- The documents needed are a valid passport, visa, proof of overseas address, and photographs.
- These accounts are necessary for investment in Indian assets, remittances, and handling Indian income legally.
