Can NRIs convert an existing resident account into an NRE or NRO account?
An NRI cannot directly convert an existing resident account into an NRO account. However, once their residential status changes, NRIs can convert their resident account into an NRO (Non-Resident Ordinary) account. If they wish to open an NRE (Non-Resident External) account, they must close their existing account and open a new one under the NRE category. They should inform their bank and complete the necessary formalities.
Are there any restrictions on the type of transactions that can be conducted through these accounts?
Yes, NRE accounts are primarily for income earned outside India and should not be used for local payments. NRO accounts can handle local transactions, but all income sourced outside India must be preserved in NRE accounts.
Can NRIs open both NRE and NRO accounts?
Yes, NRIs can open both NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts simultaneously under the same PAN. These accounts serve different purposes:
- NRE Account: For depositing income earned outside India. It allows for repatriation of funds and is tax-free in India.
- NRO Account: For income earned in India, such as rent, dividends, or pensions. It has limitations on repatriation, and income is subject to taxes in India.
Does Jainam have any empaneled banks for account opening?
NRI clients have to open PIS accounts with Empaneled Banks (AXIS, YES, ICICI, HDFC) only. |