Hi, Can a Non Resident Indian (NRI) open an NRE account as well as keep his old resident accounts active?

Question

Is there a government regulation prohibiting an Indian national to have both type of accounts in Indian banks?

Answer 1

Best Answer - Chosen by Voters

Dear Sir, It is mandatory for a person to get all his /her bank accounts re designated as NRO accounts within a reasonable time when he / she becomes an NRI except that in case of NRIs in NEPAL and BHUTAN , their existing accounts continue as resident accounts. 2. The new NRO accounts may be held jointly with residents and /or with non residents.3. Repatriation of funds from NRO accounts are subject to the directives of RBI and notifications issued under FEMA from time to time. The rupee denominated products are in two broad categories. 1. Non-Resident (ordinary) account i.e. NRO. 2. NON-RESIDENT (EXTERNAL) ACCOUNTS i.e. NRE. The difference between the two categories mainly relates to REPATRIABLITY of funds deposited , debit/ credit transactions permitted and a few related operational aspects.The foreign currency denominated deposits are similar to NRE in nature inasmuch as repatribility and permitted credits are concerned , expect that they are purely term deposits account. Pl. don't forget to choose best answer to deserving person.

Answer 2

A non resident indian can open a NRE account by remitting funds from abroad to an Indian Bank. His old resident accounts can be alive but will have to be converted into Non Resident Ordinary (NRO) Accounts.

His indian expenditure can be met from his NRO accounts. There are however, specific restrictions about receiving credits in NRO accounts. For details, please, refer to Reserve Bank of India Circulars on the subject.