Posted on: 10-09-12 10:38:20
Hello fellow CD's
I needed some guidance with having Savings Bank Account in India.
I have an existing SB acct in HDFC Bank which I continue to operate as I transfer money to this account for my parents in India from time to time
I am myself having a Non Resident status as I am out of India for more than 6 months.
In these circumstances, can I continue to hold the HDFC Bank account as a resident Savings Bank account or do I need to convert the account to NRE account?
If I need to convert to NRE account, is there any time limit and do I need to inform HDFC banbk or they can convert it themselves once I tell them I am an NRI status holder for tax purposes in India
Any inputs in this regard would be of great help
Thanks
Quote:
Originally posted by incanada
Hello fellow CD's
I needed some guidance with having Savings Bank Account in India.
I have an existing SB acct in HDFC Bank which I continue to operate as I transfer money to this account for my parents in India from time to time
I am myself having a Non Resident status as I am out of India for more than 6 months.
In these circumstances, can I continue to hold the HDFC Bank account as a resident Savings Bank account or do I need to convert the account to NRE account?
If I need to convert to NRE account, is there any time limit and do I need to inform HDFC bank or they can convert it themselves once I tell them I am an NRI status holder for tax purposes in India
Any inputs in this regard would be of great help
Thanks
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These guys are so fussy, they will say go to our website and fill it out.
Then it reaches a location and you get a call from some IT guy, who
has no guts to tell you what exactly it is that you have to do. After a
nice conversation, he will say.. "MY Boss Will get back to you". Mmm
Now that is what you will have for an answer from that IT rep on the
application process... What is it? The application is on their website.
May be I jumped the gun. Read on...
Here is what you should do. Many of us prior to leaving India, we all
visit our bank and do all of the needful, PRIOR to departure. Also, we
get a hand full of Foreign Exchange from that location. So, they know
you are flying the coup. I know that you did not do that.
But they do know now. Because they are now receiving the money
from you and your Parents are receiving the same in exchange from
them. So, it is just a courtesy that you drop and formalize this. HOW?
Now to the nomenclature... What are all of the types of accounts
that they have for us to use.
NRE Non Resident External. For people who are abroad and use it..*
NRO Non Resident Ordinary. Most of us who want a Rupee. a/c
FCNR. Foreign Currency Non Resident *
NRNR Non Resident Non Repatriable.
(Non Resident Special Rupee a/c An OLD ACCOUNT, now changed to.) ??!!
* The ones with the star* lets you keep the interest that it generates,
Free, without paying any taxes to India. (But you may have to include
it in your Canadian or your countries' Income Tax as income from
other sources.
WHEN YOU MAKE A REQUEST... They will ask you to fill in a few of the
forms, and currently there is a Canadian Rep, somewhere in the
wood works, who does all of the sending for you, who will get these
filled forms from you and in about SIX weeks you will get set. How
soon they will respond back is another matter to consider.
Your SB account will become NRE a/c and ask them to maintain the
NRO account. Also ask them to open up a FCNR account. Just to make
your life simple, deplete all of your NRE account, that way the funds
will get to NIL first. Ask them to deposit all of your DEPOSITS from
Canada to go to FCNR a/c. The funds from this account, FCNR. is
an account that will let you export the funds FREELY to any other
country. Any other account, such as NRO and NRNR a/c, has a lot
of rigamarole to follow if you ever want the money back from them.
They already know about you as they are receiving the money from
abroad, and has a flag dropped there currently. You should call them
and do it whenever you have a few minutes to talk with your branch,
where it has your funds. If they can do it without doing the paper
work, then, you will be set up immediately.
FH
Might need a copy of the Passport too.
Also include the spouse, if you have that in mind. Like a Joint Account.
Do not convert your Savings Bank account into NRE account. If need be open a NRE account seperately as in some cases Domestic Saving account is needed which you cannot open with your current status.
NRO is Indian Rupee account with in Indian Financial arena ... NRE is external (whether in Indian currency or Foreign) and does not enter Indian Financial arena ..... hence fully repartriable w/o any fuss .... Basic difference between NRE and NRO is repartirability back of principal & interest which is no fuss in case of NRE and needs RBI formalities in case of NRO.....
SB a/c cannot become NRE account- it needs to be opened separately .
After you become an NRI its illegal to continue having a regular SB a/c . Inform the Bank to to convert it to NRO .
How I do is - have an NRE a/c as well as an NRO a/c .I transfer money to NRE a/c and then per need deposit it to the NRO a/c through an account cheque book ...... But some people have advised me recently that one can transmit money from abroad directly to an NRO a/c w/o needing an NRE a/c .... so depositing from overseas wise there s no problem....
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Fido.
Quote:
Originally posted by amarakbaranthony
Do not convert your Savings Bank account into NRE account. If need be open a NRE account seperately as in some cases Domestic Saving account is needed which you cannot open with your current status.
_______________________________________________________
Some of the features that you are mentioning could be held and retained, if the account was set as a joint account and is managed by some one there in person.
When you declare yourself as an NRI, the banks terminate or modify the same to suit the NRI status. At which time, the funds in the SB account becomes 'Funds from Indian Origin' and they might not permit you to club any of the Foreign remittances together within the same account. Hence I requested that the monies held in this account be depleted first for use, there within India.
In normal Indian Banking, there is only SB Account. For the person from abroad they started the ORDINARY one. Hence the NRO account.... where everything from the local remittances gets entered into.
It is a point worth noting and discussing with the NRI rep at the bank. Also ask them to drop you a response in mail for your files.
It will be worth noting that the remittances from abroad gets converted on the date of receipt into Indian Currency and gets into the NRE account.
Also note that we as NRI, cannot hold any foreign currency in any account and are subject to transaction fees and also the Rate Differentials. (The differentials between the BID and ASK) These are all the benefits the Bank accrues from your transaction and the exchange conversion. Take this into account ( in your calculations that is) when you use their services for *FIXED DEPOSIT Savings, and if you are reporting your interest income in your tax returns elsewhere.
FH
* More on this at a later date.
Hello Friends
I have few questions regarding my Indian bank accounts. It will be helpful if I can get advise on same
1. Me and My wife both of us are canadian permanent residents since June 2013 and for Tax purpose we are NRI's, but we are still holding our SB savings account in India. How soon we are suppose to change our account to NRE/NRO, is there a time limit?
2. We have account with ICICI bank Canada and we able transfer fund to our Indian bank accounts to take care of parent, family, house and maintenance, do we need to have an NRE account? or just NRO account is sufficient, is it mandatory to have an NRE account?
3. I have a home loan emi, personal loan emi, and Credit card balance dues in India that I pay through my indian account. All these are linked to my SB bank account in India(HDFC bank), can I continue to pay them in same way or will there be any change after I covert my SB savings account to NRO account?
Technically you have to convert your resident account to NRE or NRO , once you become a PR of Canada, but DON'T tell them anything & you can continue as usual. They WON'T find out.
As far as transferring money to India is concerned, you can transfer money from here to ANY account in India , whether its NRE, NRO or Resident Ordinary account..they don't care. They just want to make some money on the exchange rate that's all.
Open an account with Money 2 India ( remittance transfer service of ICICI ) & then link your Canadian ICICI bank account or any other Canadian bank account to it , and then using M2I transfer money to ANY ordinary resident account, NRE account or NRO account in India.
I have friends who have both NRE/NRO accounts in India with ICICI , and also have their ordinary resident account with some other bank ( not ICICI ) . ICICI has no clue they have a resident account with some other bank , and the other bank has NO clue they have a NRE/NRO account with ICICI.
Keep thing as is , to avoid further red tape, bureacracy etc.
If you really want then open a NRE or NRO or both accounts with some other bank ( besides HDFC ) & keep your HDFC resident account as is.
Quote:
Originally posted by 1980stoneboy
Hello Friends
I have few questions regarding my Indian bank accounts. It will be helpful if I can get advise on same
1. Me and My wife both of us are canadian permanent residents since June 2013 and for Tax purpose we are NRI's, but we are still holding our SB savings account in India. How soon we are suppose to change our account to NRE/NRO, is there a time limit?
2. We have account with ICICI bank Canada and we able transfer fund to our Indian bank accounts to take care of parent, family, house and maintenance, do we need to have an NRE account? or just NRO account is sufficient, is it mandatory to have an NRE account?
3. I have a home loan emi, personal loan emi, and Credit card balance dues in India that I pay through my indian account. All these are linked to my SB bank account in India(HDFC bank), can I continue to pay them in same way or will there be any change after I covert my SB savings account to NRO account?
