NRI banking benefits: Things you need to know

Meet Aryan, a global citizen and seasoned traveller whose passion is traveling and connecting with diverse overseas cultures. However, during his global adventures, he encountered financial intricacies, managing multiple currencies, and navigating complex transactions.

In today's interconnected world, global citizens require banking solutions that match their versatile lifestyles. Fortunately, there is Non-Resident Indian (NRI) banking that brings all international finances under one roof. Let us understand what NRI banking is so that you can enjoy a seamless and consolidated banking experience.

What is an NRI account?
 

Non-resident Indians can open multiple bank accounts based on their financial requirements. There are two types of savings accounts accessible to NRIs - 

• Non-Resident External (NRE) -

An NRE Savings Account provides NRIs with a secure and simple way to park their foreign income from their country of residency and increase their wealth by earning higher interest rates. The money in the NRE account is converted to INR (₹) at the moment of deposit using the current forex rates.


• Non-Resident Ordinary (NRO) -

An NRO account is a savings account that allows you to save and manage your income received in India, such as rent, dividends, and pensions.

Also read - NRIs visiting India this holiday season? Travelling tips to reduce expenses, save more, and bank smarter!

Advantages of NRI banking
 

As an NRI, you can take advantage of a variety of perks available with banking accounts tailored to your specific needs. These include fast money transfers, fund repatriation, higher interest rates, tax breaks, investments in the Indian stock market, and much more.

Let’s learn more about NRI banking and NRI account benefits - 

• Versatile global wallet

Aryan, having experienced the limitations of conventional accounts, discovered the transformative potential of an NRI banking account. Unlike regular accounts that often struggle to accommodate multiple currencies and international transactions seamlessly, NRI accounts act as dynamic global wallets.

 Whether you reside in the US, Europe, Asia or anywhere across the globe, an NRI account serves as an all-in-one financial command centre for your diversified portfolio. Track equity investments in India, transfer funds overseas, or set up recurring payments for family - all this and more is now possible from a premier NRI account.

• Cutting-edge banking features

Managing money across time zones can be complex, and NRI banking accounts bring in smart features to transfer funds or make everyday transactions without stress. Whether you have opened an NRE or NRO Account, you can deposit revenue received in an overseas jurisdiction into such accounts. The funds can then be accessed at any bank branch in India.

A few more features that the NRI banking account offers are - 

- Enjoy real-time account credits in your NRI account

- Eliminate correspondent bank charges on overseas money transfer

- Eliminate fees on processing your overseas payments

- Shield investments from currency fluctuations; currently offered in 5 international currencies

- Make seamless worldwide payments and ATM withdrawals as per travel needs

• Seamless fund transfers and currency exchange

Aryan is planning a surprise gift for a family member back home and needs to transfer funds swiftly. Fortunately, with NRI banking, seamless fund transfers are not just a luxury; they’re a standard feature. With NRI accounts, sending money to your loved ones or managing expenses in your home country becomes a breeze.

Manage finances easily across borders
 

To stay financially secure, you need 24X7 assistance, and leading NRI savings accounts integrate with various digital channels to offer convenience at your fingertips. If you're low on travel allowance abroad, use online banking to transfer money from overseas accounts in seconds. Need foreign currency advice? Connect with your dedicated relationship manager. . If you misplace your chequebook, instantly reorder online without visiting the home branch. Secure banking on the go with multi-level mobile app protection.

• Preserve long-term wealth

Under Indian tax legislation, interest income produced on NRE Accounts is not subject to income tax; therefore, it remains tax-exempt for the account holder. Because of this exemption, the bank will not deduct any tax from such interest income on NRE savings accounts or fixed deposits. However, the exemption only applies to NRE accounts, not NRO accounts. As a result, the bank will deduct tax at the source from such interest income on NRO accounts.

• Explore avenues for offshore investments

Beyond day-to-day transactions, NRI banking accounts allow for offshore investments and robust asset protection. Diversify your portfolio, explore international investment opportunities, and ensure that your assets are shielded against unforeseen circumstances. It’s not just about managing money; it’s about strategically growing and protecting your wealth.

It is important to select the appropriate NRI banking account based on your individual financial needs and objectives. Furthermore, the benefits and laws linked with NRI accounts may change over time, so it’s best to check with your bank or a financial advisor for the most recent information and to ensure you comply with Indian financial regulations.

Also read - Discover Metra Trust NRI Banking Service under 3 minutes!

Summing up​
 

NRI bank accounts in India provide a variety of benefits that are tailored to your personal financial needs and aspirations. From tax breaks to numerous investment choices, quick fund repatriation, and competitive interest rates, these accounts offer a complete financial solution for all your financial and investing needs.

Metra Trust NRI Savings Accountsoffer seamless access to banking services whether you are in India or abroad. Also, you get competitive interest rates on your NRI account and can invest your money in various instruments, such as mutual funds and deposit schemes in India.