NRI banking options to save, remit, invest
Broadly there are three types of accounts that NRIs can open in India—NRE, NRO and FCNR.
Anu Anto, a non-resident Indian (NRI) who works as an information technology professional at Emke Group in Muscat, transfers money to his family in India every month. For this, he uses his non-resident (external) rupee (NRE) account at State Bank of Travancore (SBT) in Thrissur, Kerala. “I opened the account with SBT because it is close to my house and is easier for my family to withdraw money whenever they want,” says Anto. Anto is one among many NRIs who send money to their families in India. According to data from the Reserve Bank of India, in 2011-12, NRI deposit flows witnessed a sharp rise of at least 200% and stood at $11.9 billion compared with an inflow of $3.2 billion in 2010-11.
So if you are one of those who receive money from your kid or spouse abroad or know somebody who wants to save and invest in India, you should know what banking options are available to them.
India broadly offers three accounts for NRIs: NRE account; non-resident ordinary rupee account (NRO account) and foreign currency non-resident (bank) account (FCNR (B) account). While the NRE and FCNR accounts can be opened by NRIs, the NRO account can be opened by any person who is a resident outside India, except those residing in Nepal and Bhutan.