Many Indians living abroad who have achieved the NRI status maintain an NRE and NRO account with Indian banks. Read on to know more about how to deposit money in such accounts.
A 2019 research suggests that nearly 10% of the total UK’s population constitutes NRI (Non-Resident Indians), and there are almost 13 million NRIs in the US. To cater to the banking of such a huge community of Indians living abroad, the Indian government has created specific banking guidelines for them.
Any Indian who has achieved the NRI status as per the Indian Income Tax definition, he/she cannot maintain an Indian resident account; they must either convert it into NRE or NRO account or open a new one. Today, all the major banks in India offer NRI banking services, and as an NRI, you can open an NRE or NRO account with any bank of your choice.
If you have recently opened an NRI account or want to open one, you must know how you can deposit money in your account.
Use Remittance Service
One of the easiest and most common ways to deposit money in your NRE fixed deposit or savings account is by remitting foreign currency through remittance services. Many such services allow the transfer of funds directly to the beneficiary’s bank account. When you remit the money, the bank will convert the amount into Indian Rupees as per the prevailing exchange rate and hold the deposits in Rupees.
The same method can be used for depositing money in your NRO (Non-Resident Ordinary) account. However, to deposit funds in your NRO account, the funds must be earned in India.
When you transfer funds to your NRE (Non-Resident External) account from abroad through remittance services, they may levy a service charge. So, it is better to look for a service that has a lower service charge.
You can also transfer money to your NRE or NRO account you hold in India through a wire transfer facility from the local savings bank account in the country of residence. Most banks offer this service, and you can directly transfer the funds online or through the mobile application. Some foreign banks may levy charges for international transfer, so be aware of such fees before initiating the transfer.
You can directly deposit cash in your NRE or NRO account when you travel to India. This would require you to visit the bank branch. But remember, for the NRE deposit, you must deposit foreign currency, which will be converted into INR at the time of deposit. And for the NRO account, the deposits must be made in INR only.
Issue a Cheque
You can deposit money in your NRE account by issuing a foreign currency cheque from your overseas bank account. This is a slow process as it takes time to process an international cheque. It usually takes about seven to 10 working days for the amount to be credited in your NRE account.
For an NRO account, you can deposit a cheque issued by an Indian resident.
If you plan to visit India, you can also tender a traveller’s cheque to deposit money in your NRE or NRO account.
Lastly, if you hold an NRE bank account, you can deposit money by directly transferring from your other NRE or FCNR (Foreign Currency Non-Resident) account.
Thus, there are many ways to deposit money in your NRE and NRO accounts. You must be aware of the various deposit rules regarding accepted currency for a hassle-free banking experience.