With a view to attract the savings and other remittances into India through banking channels from the person of Indian Nationality/Origin commonly known as Non Resident Indians (NRI), Person of Indian Origin (PIO) or Overseas Citizen of India (OCI), who are residing outside India, the Government of India introduced Non-Resident(External) Account Rules in 1970 which are governed by the Exchange Control Regulations. NRIs, PIOs and OCIs residing overseas can open and maintain bank accounts in India known as NRI savings bank accounts with an authorised dealer or co-operative bank or any other bank or public financial institution which is specially authorised or exempted or permitted in this behalf by the Reserve Bank under the Act without seeking any permission from the Indian government authorities.
An NRI/PIO can maintain an NRO account (Non-Resident Ordinary Rupee Account) savings, NRE savings account (Non-Resident External Rupee Account) or FCNR (B) account (Foreign Currency Non-Resident Bank Account) with any bank in India. NRO Savings accounts can also be maintained with the Post Offices in India.
Compare at nriDealExpert.com to find out the best NRO savings accounts or NRE savings accounts in India.
The Non-Resident External Account (NRE Account) is bank account held in India, in Indian Rupees. The nature of the account can be is a Savings Account, Current Account or a Fixed Deposit. The foreign currency earnings can be deposited into the NRE savings account by transfers from your country of residence or transfers from other NRE accounts in India. To deposit money into an NRE account, you need to convert foreign currency into Indian Rupees (USD to INR, GBP to INR, CAD to INR, AUD to INR, etc) by transferring money to your NRE account in India. You can open either NRE Savings or NRE current or NRE fixed deposit in India. To open NRE fixed deposit, you need to first transfer money to your NRE savings account and then give a request to your bank in India to open a NRE fixed deposit. You can always convert the money lying in your NRE account (NRE savings account or NRE fixed deposit) back to foreign currency and repatriate the sum out of India, since both principal and interest earned in this NRE account (NRE savings account or NRE fixed deposit) are freely repatriable.
Compare at nriDealExpert.com to find out the best NRE savings accounts in India.