You have recently moved abroad while your parents are still in India. And now you need to transfer some funds for your parents to a bank account in India. So what options do you have? As an NRI working abroad, it makes sense to open an NRI account in India to manage your savings effectively.

You can either open a Non-Resident Ordinary savings account (NRO) or a Non-Resident External Savings account (NRE). An NRE savings account allows you to deposit your foreign currency earnings in India. Here, the amount deposited gets converted into Indian Rupee.

Why Do You Need an NRE Savings Account in India?

According to the Foreign Exchange Management Act (FEMA), an NRI cannot hold a regular savings account. If you wish to carry out financial transactions in India, you need to open an NRE account. This NRE account allows you to freely repatriate your money, both the principal and interest amount, into your account overseas.

You can easily operate and manage your NRE savings account from anywhere, as most banks offer the convenience of digital banking. Also, you don’t have to worry about your family as they can easily access the funds available in this account.  

When you are looking to open the best NRE savings account, here are a few things you need to know about the eligibility criteria and documentation required.

NRE Savings Account- Eligibility Criteria

The individual must be a Non-Resident Indian (NRI) or Person of Indian Origin (PIO) or, OCI or

Mariners/ seafarers of Indian nationality or, 

Mariners of Indian origin employed by the foreign shipping company or, 

A student pursuing studies in a university abroad

NRE Savings Account- Documentation Required

Recent passport-size photograph

A copy of the passport indicating passport details and personal information

A photocopy of your PAN card or Form 60, in case you don’t have the PAN card

Proof of address- either overseas or Indian

A copy of proof of NRI status- Work permit/ Resident permit/Employment visa/Other valid proof

For seafarers/mariners, a photocopy of CDC and employment contract is also compulsory

You can submit these documents to your preferred bank for swift account opening, if you fulfill the eligibility criteria.

Features of an NRE account

An NRE savings account is your best bet to manage your overseas earnings conveniently.

Funds available in the NRE account are easily transferable from India to the foreign account without any restrictions 

You can earn interest on your completely tax-free( In India) savings

You can open an NRE account either individually or jointly with another NRI

The best NRE savings account also lets you invest your funds in various securities in India

With the use of an international debit card, you have the freedom to spend or withdraw your funds with ease, both in India and abroad

Final Words

Whether you want to send money to your family in India, invest across asset classes, or even shop and pay utility bills, an NRE account is your perfect solution to all financial needs. Moreover, you can open an account with top banks like the IndusInd Bank that offers you the best NRE savings account with many financial benefits.