Can I convert my savings account to NRO account?
Yes. You can convert your Resident Account to NRO Account. According to FEMA guidelines, when an individual changes his residential status from ‘Resident’ to ‘Non-Resident’, he must re-designate his resident account as an NRO (Non-Resident Ordinary) account.
Is it mandatory to convert savings to NRO?
It is mandatory: As per the Foreign Exchange Management Act (FEMA) guidelines, NRIs cannot hold resident FDs. They must convert it to an NRO deposit account. There is a penalty if you do not get the conversion done. 2.
Can I convert my HDFC savings account to NRO account online?
All you need to do is fill a form online, take a printout, attach the self-attested copy of the required documents and courier it to the bank in India. HDFC Bank allows conversion of your existing Resident account to NRO account by simply emailing the required documents to the Branch via your register email id.
How can I convert my local account to NRO account?
How to convert the resident account to NRO account?
- Contact the bank where you have your resident bank account and request for ‘conversion from a resident to the NRO account’.
- Fill the application form and get it signed by all the account holders.
- Collect photocopies of the required supporting documents.
Is it illegal for NRI to have savings?
As per the Foreign Exchange Management Act (FEMA) guidelines, an NRI cannot have a savings account in his or her name in India. You must convert all your savings (money earned abroad) to a Non-Resident External Account (NRE) or Non-Resident Ordinary (NRO) account.
Can NRI keep saving account?
A non-resident Indian (NRI) is an Indian citizen or a person of Indian origin residing outside India. NRIs can maintain bank accounts in India in the form of rupee or foreign currency accounts. The latter can be maintained only with RBI authorised dealers or banks.
How long does it take to convert savings to NRO?
Such accounts will be activated within 2-3 working days. By sending it to SBI Branch in India: Please click here.
Which bank is best for NRO account in India?
Top 10 NRO accounts in India
| NRO Accounts | Interest Rate | Minimum Balance |
|---|---|---|
| Kotak Bank | 3.50% | ₹10,000 |
| HDFC Bank | 3.00% | ₹10,000 metro area/ ₹5,000 semi urban |
| ICICI Bank | 3.00% | ₹10,000 |
| DBS | 3.00% | ₹5,00,000 total value |
What happens if savings account is not converted to NRO account?
As per FEMA rules, the penalty for not converting resident account to an NRO account is up to 3 times the amount involved in it or Rs 2 lakh when the sum is not quantifiable. A daily penalty of Rs 5,000 will also be charged from the 1st day of intervention until the penalty is paid.
Can a resident savings account be transferred to NRO account?
After re-designation of your resident savings account to NRO savings account, the account number will remain the same and funds from resident savings account will automatically be transferred to NRO savings account. In case of your Indian address not being changed you would not be required to submit the proof.
Can a NRI convert a savings account to a NRE account?
NRIs can open two types of NRI accounts based on repatriable (NRE) and non-repatriable (NRO) basis. But, NRIs can only convert the savings bank account to NRO account. It is because money transfer from the resident account to an NRE account is not permitted. To convert the resident account into an NRE account, an investor has to close the account.
What can be deposited in NRO account in India?
All income which is receivable in India such as rentals from property, investments, pension etc has to be deposited in this account and any payment towards insurance premiums or EMIs on loans which you availed while in India also has to be mandated from NRO account. The interest will be the similar to the interest on a regular savings bank account.
What is minimum amount required to open NRO account?
The minimum amount required to open an NRO Savings Account is INR 10,000 or its equivalent in foreign currency. You would be required to maintain an Average Monthly Balance of INR 10,000/- only.