For non-resident Indians (NRIs), money management and expenditure can be best solved with NRI Bank Accounts. NRI Accounts come with several tax and transactional benefits and are offered by most leading banks in India.
However, before opening an NRI Bank Account, you should ensure that you have all the necessary documents that banks require. Moreover, the documents required for an NRI Account are different for the distinct types of NRI Accounts.
Types of NRI Accounts
There are three primary types of NRI Accounts:
1. Non-Resident External (NRE) Account
This account helps manage foreign income earned outside India. It comes with tax benefits on the deposit and is ideal for investment purposes across India. The documents required for NRE Accounts are different from other types of accounts.
One of the leading banks in India that offers NRE Accounts is Axis Bank. The NRE Account opening process can be easily completed online. The Axis Bank NRE Savings Account provides air accident cover and personal accident insurance cover, amongst other standard benefits.
2. Non-Resident Ordinary (NRO) Account
For the period when an NRI was the country’s resident, the income earned with property sales, rent and investments can be well managed with this type of NRI Account. This Account is subject to taxation as per Indian laws.
3. Foreign Currency Non-Resident (FCNR) Deposit Account
This account is opted by NRIs looking to maintain an account similar to Fixed Deposit Accounts in India. These accounts provide tax benefits on interest income and are preferred by individuals who wish to see their holdings grow.
Documents required for opening an NRI Account in India
While opening an NRI Account, you need to complete the mandatory Know Your Customer (KYC) process. You need to keep certain documents handy, including the NRI Account opening form. These may vary a bit from one bank to another, but you can download the NRI Account opening form pdf from the official bank websites.
Here is a list of the most widely acceptable documents needed for NRI Accounts:
1. Passport and visa documents:
A passport is one of the main ID verification documents required for opening NRI Accounts. Along with that, a copy of the visa is also required to validate your NRI status.
2. Proof of NRI status:
The following documents are required to prove the NRI status:
- Residential Certificate: You can acquire it from the tax authorities of your current residential country. It serves as your proof of non-resident status in India while applying for an NRI Account.
- Overseas Employment Certificate (Work Permit): Based on your country of residence, you would have received a certificate showing your employment status abroad.
3. Address proof:
Here is a list of documents required to open NRI Accounts that you may submit as proof of address:
- Passport (valid as on date)
- Permanent Driving License, which is valid with the photograph affixed thereon.
- Voter's Identity Card (Election Card)
- For a complete list of acceptable Indian address proof documents, click here.
4. Passport-size photographs:
You are required to provide passport-sized photographs adhering to the specified guidelines of the bank where you wish to open your NRI Account. Banks require these photographs for official purposes during the account opening process.
5. PAN card:
A Permanent Account Number (PAN) card is a mandatory requirement for transactions and taxation purposes across India. Thus, while opting for NRI Account creation, it is important to provide a copy of the PAN card for the documentation process.
6. Proof of Indian origin:
For candidates having Indian origin, NRI Account documents proving Indian origin are essential. This might include:
- Overseas Citizen of India (OCI) card
- Person of Indian Origin (PIO) card
Tips for document preparation
Managing all the documents required for NRI Accounts in India is a complex aspect of the account creation process. Here are a few tips to keep the documents required for an NRI Account handy:
1. Document management system: Once the documents required for opening an NRI Account are gathered, you must organise them by categories, like address, identity or account type. This will help you access them easily as and when required.
2. Use digital copies: Digital copies of documents required for NRI Accounts are ideal for digital account opening with easy access and sharing. They are less prone to theft and data loss, and regular backups help keep data secure.
3. Document naming conventions: The documents needed for NRI Accounts must be named precisely as they are collected. This reduces any chances for misplacement and assists in creating a well-organised and easily accessible document set.
4. Keep the physical copies secure: Even though digital copies solve most purposes, it is important to keep the physical copies of the documents required for opening NRI Accounts secure and handy.
5. Avoid document overload: While storing and managing the documents required to open NRI Accounts, don't forget to regularly review and delete outdated versions / extra copies. This is essential to avoid further confusion and prevent the documentation from becoming messy.
6. Seek professional assistance: It is best to begin by consulting a professional, like a legal or financial advisor, to help manage the NRI Account documents. They assist you with regulatory compliances.
All photocopies of the proofs must be attested
The above set of documents required for NRI Accounts in India must be attested by certain officials. Here is a list of them:
- Officials from overseas Scheduled Commercial Bank branches registered in India
- Officials from overseas bank branches having relationships with Indian banks
- Notary Public abroad
- Court Magistrate
- Judge
- Indian Embassy or Consulate General where you reside
Also Read: Top 12 advantages of NRI accounts to know
Conclusion
Opening an NRI Bank Account comes with several benefits. However, you need to ensure that you have all the necessary documents with you. By now, you must have learned about all the documents that are required to open an NRI Bank Account so that you can avail yourself of all the benefits that come with NRI Accounts.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
