How NRIs can manage income overseas easily

How NRIs can manage income overseas easily

23 November, 2022

Despite living and working in a foreign country, most Non-Resident Indians (NRI) and People of Indian Origin (PIO) often have a deep connection with their home country through their relations with family, friends, alma mater, etc. In many cases, many of these NRIs have financial commitments in India, which require an easy way to remit money and manage it from time to time.

Managing financial commitments in India as an NRI

NRIs and PIOs can transfer money to a bank account in India in various ways. This includes brick-and-mortar or online money transfer agencies, bank wire transfers through the SWIFT network, international money orders, demand drafts and foreign currency cheques.

If you are looking for the most convenient way to save and manage your overseas income in a bank account in India, the answer is an NRE Savings account. NRE account full form is Non-Resident External account. It is one of the most common types of NRI accounts. It allows for easy money transfers and many other benefits when it comes to money management.

Benefits of an NRE Savings Account for managing overseas income

Convenient opening: Any non-resident Indian can open an NRE Savings Account at an Indian bank branch. For instance, if you are unable to visit India but want to open an HDFC Bank NRE Savings Account, you can download the NRE account opening form, fill it out, and post it along with self-attested KYC and other documents.

Seamless online transactions: Once your NRE account is opened, managing money and transactions becomes easy. HDFC Bank offers NetBanking access, which lets you conduct secure online transactions 24X7. This means you can pay utility bills and transfer funds seamlessly between India and other foreign countries at your convenience. You also get an international ATM-cum Debit Card so you can shop or withdraw cash easily worldwide. The account can even be converted into a Foreign Currency Non-Resident Account (FCNR) or standard Savings Account if you become a resident Indian in the future.

  • Easy transfers: The money you earn overseas is deposited in your HDFC Bank NRE account in Indian rupees. Deposits can be made through demand drafts, foreign currency cheques, wire transfers, etc. Additionally, there is no limit to the money deposited into your NRE account, provided it is legally earned in your country of residence. Along with online transactions, you can withdraw money from your NRE Savings Account through ATMs and branch visits. Repatriation from an NRE account to a foreign account is also possible.

  • Tax benefits: An NRE account is entirely exempt from tax liabilities and compliance formalities. It does not attract any wealth or gift tax on money held or transferred through the account. If you pay tax on income earned in the country where you reside, the money transferred to your bank account in India is exempt from income tax. Additionally, any interest earned on the money in your NRE Savings Account is also safe from income tax.

  • Interest Income: Like regular Savings Accounts, NRE accounts offer attractive interest rates on the balance maintained. In fact, compared to many developed countries, Indian banks offer higher interest rates, making NRE accounts a more profitable deposit alternative. For instance, HDFC Bank offers competitive interest rates of up to 3.5% on NRE Savings Accounts and up to 7% on NRE FD (Fixed Deposit) accounts.

  • Investments: Another massive benefit of having an NRE account is that you can use it to invest in Indian investment instruments. For NRIs and PIOs looking to tap in on the India growth story, an NRE account is an ideal medium. With your NRE account, you can put money in stocks, mutual funds and more, and can even start a business in India with this account.

  • Provide a mandate: Maintaining an NRE account without being physically present in the country is not a concern. You can mandate or appoint an Indian resident to carry out banking transactions on your behalf.

If you are unable to visit India, you can download the NRE account opening form, fill it out, and post it along with self-attested KYC and other documents or you may also apply online for account opening on a non face-to-face basis. Click here to apply online.

All the benefits above are available with an HDFC Bank NRE Savings Account, making it an obvious choice for NRIs and PIOs, who need an easy and convenient way to transfer and manage their money in India. From making payments and investments seamlessly, to tax benefits and steady returns on deposits, you can enjoy it all no matter where in the world you live!

Looking out for best NRI Investments themes? We’ve got you covered. Click here to know more

To apply for NRE Savings Account, click here to get started!

​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.

Looking to apply for NRE Savings Account? click here

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