Benefits of opening a Non-Resident Indian, or NRI, account, is to earn tax-free interest in India, allow family in India to access the account, gain repatriability of the money and receive competitive exchange rates, according to ICICI Bank and the State Bank of India. There are several types of accounts available. Customers should contact their banks to determine the best account for them.
People can be considered an NRI if they are Indian citizens working abroad or living abroad for an uncertain amount of time. NRIs have the ability to keep and maintain bank accounts in India. They are also allowed to invest in securities and properties located in India.
One type of account is the Ordinary Non-Resident Account. This account is available in rupees, and certain funds may be taxed, according to SBI. The Non-Resident External Account is a tax-free interest savings account available in rupees. The RFC account is used by Indian citizens who plan to move back home permanently. It is available in United States, Great Britain and European currencies. The Foreign Currency Non-Resident Account Bank Scheme is available in several foreign currencies. It is a fixed-deposit account that is freely repatriable, and it has tax-free income.