Indian banking regulations are different and a bit stricter for non-resident Indians. It can often be confusing when carrying out international banking activities. Here we answer the most asked questions about NRI Banking.
What is an NRI Account?
An NRI Account specifically caters to NRI financial requirements. You cannot operate your finances by becoming an NRI using a regular Indian Savings Account. You need to close or convert their Indian Savings Account to an NRI Account. There are three types of NRI Account: Non-Resident External or NRE Account, Non-Resident Ordinary or NRO Account, and Foreign Currency Non-Resident or FCNR Account.
Each Account has unique features that set them apart from the others. Other NRIs individuals of Indian Origin and holding Overseas Citizenship Card can open an NRI Account.
How to open one?
You can easily open an NRI, NRE, or NRO online from anywhere at any given point. Log on to the banking portal or app of the chosen bank, fill out the form, submit some documents, and you are done. Make sure to complete the eKYC procedure and keep everything handy. Providing your overseas address is necessary to open such accounts. The banks use them to confirm your NRI status and are helpful for overseas banking communication.
If you find yourself in a fix, you can always contact the bank’s customer representative for assistance.
Can NRIs invest in the Stock Market?
The most significant advantage of opening an NRO Bank Account is that it allows you to make investments easily. Yes, NRIs can invest in the Stock Market and other financial vehicles. The investments are made possible through Portfolio Investment Scheme. An NRI can open multiple Demat Accounts. However, only one Demat Account is allowed for each depository participant.
Also, you cannot directly link your Demat Account to your accounts. You need to open a different account called PIS if you wish to invest in equities and the secondary market.
Can you assign power of attorney for banking purposes?
Yes, you can assign power of attorney for banking purposes. Being an NRI, you would be away from home for a considerable period. You cannot often travel to sign bank papers or carry out other formalities. In this case, you can assign a trusted family member as power of attorney. A POA can manage activities like operating your account, making investments, or carrying out other financial activities.
Note that a POA cannot open an NRI Account on your behalf. Only the applicant can sign on account opening documents. A POA can only operate your account once it is opened.