Steps to Open an NRI Bank account

By Megha Jain, Content Writer  |  Tuesday, 16 January 2024, 06:59 Hrs


Steps to Open an NRI Bank account

You have successfully achieved your NRI (Non-Resident Indian) status! But as you work abroad, you have to deal with various documents and paperwork, as well as take care of your family’s financial needs in India. You also have to manage your investments and other assets. That’s why opening an NRI account can be very helpful.

If you are a new NRI and want to know how to open an NRI account, you have come to the right place. Thanks to digital technology, many banks provide NRI account opening services with features designed for NRIs, such as convenient money transfers and investment options.

However, before you open an account, you should be prepared for any potential difficulties that may come up and overcome them in advance.

Let's understand these probable problems you might face when opening an NRI account in India and their solutions.

Process for opening an NRI account

One of the primary challenges you can encounter is the complex and time-consuming NRI account opening process. There is -

  • Paperwork
  • Documentation requirements
  • Compliance procedures
  • Different time zones
  • Limited access to physical branches

To address this concern, we at IDFC FIRST have started offering solutions to open NRI accounts basis your availability and convenience along with a dedicated relationship manager.

Regulations that govern NRI investments

As an NRI, if you want to invest in India, you have to comply with varying rules and regulations. For instance –

  • You need to begin by opening an NRI account, preferably a Non-Resident External Account (NRE) or a Non-Resident Ordinary Account (NRO) to invest in stocks or shares
  • If you hold existing investments under resident category, You are required to convert existing trading and Demat accounts to Rupee-designated NRO accounts
  • You must obtain a PIS (Portfolio Investment Scheme) account for stock trading under repatriation category.
  • You cannot invest in small savings schemes like the Public Provident Fund (PPF) and National Savings Certificate (NSC)

Determine and verify your residential status

Opening an NRI account requires proof of NRI status and address. And let's face it – determining your residential status, especially for those with frequent travel, dual citizenship, or recently acquired NRI status, is quite complex.

You have to –

  • Monitor your trips to and from India
  • If these details aren't readily available, you need to cross-check data from your passport, visa, and flight records
  • Submit documents such as passport, valid visa, work permit, overseas resident card, PAN card, or employer letter for verification along with an overseas address proof.

Therefore, keep these documents updated and readily accessible to expedite the verification process.

Communication issues (due to time zone)

This leads to misunderstandings and delays in opening an NRI account. You may be unable to reach out to the bank or get timely responses to their queries due to –

  • Different time zone
  • Language barriers
  • Limited availability of customer support services

Many banks, like IDFC FIRST Bank, now offer dedicated customer support services for NRIs, including 24X7 toll-free helplines.

Personalised banking services

Due to their large customer base and high demand for resident banking, some banks can’t offer personalised services. As a result –

  • It might appear that you receive less personalised attention than resident customers due to limited face-to-face interactions due to overseas residence
  • There are delays in opening an NRI account, processing requests, limited assistance, and a lack of tailored financial solutions that meet your unique needs

Progressive banks now provide dedicated and personalised relationship managers to solve the concerns of their NRI customers and make the NRI account opening process seamless. We at IDFC FIRST Bank also offer personalized assistance as we provide you a dedicated relationship manager to cater to all your banking needs.

Limited ease of access and knowledge in banking

Being physically distant from India, visiting a bank in person for opening an NRI account is nearly impossible. This can lead to –

  • Difficulties in accessing banking services
  • Insufficient information on banking products and investment options

To address this, many banks now offer online platforms and mobile applications, allowing easy access to account information, fund transfers, and investment options.

Hidden charges and fees

While opening an NRI account, you also open the door to various charges, including –

  • Transaction fees
  • Currency conversion fees
  • Account maintenance fees 
  • Commission for financial planning services
  • Charges for opening Demat and PIS accounts
  • Charges for not maintaining the minimum balance 
  • Debit card charges

IDFC FIRST Bank offers NRI savings accounts with no charges for various banking services, including non-maintenance of the required balance.

To sum it up

While opening an NRI account has historically been an intricate process, the banking industry has made significant strides to address the concerns faced by NRIs. By offering solutions to open NRI accounts online, specialised services, and dedicated customer support, banks are working towards making the NRI account opening process easier for you.

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