NRIs may open multiple bank accounts in India to facilitate their financial transactions, investments, and savings effectively. Yet, NRIs are not allowed to hold a normal savings account in India, according to Reserve Bank of India (RBI) policies. Instead, NRIs should keep special accounts like NRE, NRO, and FCNR accounts.
Rules for Multiple NRI Bank Accounts
1. Types of Accounts Permitted
- NRIs are allowed to open and hold multiple accounts like NRE (Non-Resident External), NRO (Non-Resident Ordinary), and FCNR (Foreign Currency Non-Resident) accounts.
- Multiple accounts enable managing income, savings, and foreign transactions in a separate manner.
2. Having Multiple Accounts
- NRIs are allowed to open multiple NRE, NRO, or FCNR accounts with varied banks.
- It is not possible for an individual to have multiple NRE/NRO accounts in one bank under the same category.
- Every account is used for a different reason, i.e., remittance, investments, or management of local income.
3. Legal Compliance
- Maintaining a common savings account as an NRI is against the law as per the rules under Foreign Exchange Management Act (FEMA).
- If an NRI maintains a resident savings account, he/she needs to convert it to an NRO account instantly.
- Not doing so may attract penalties in the form of a fine of up to ₹3 lakh or ₹5,000 per day until corrected.
