Such individuals will have to convert or re-designate any resident bank accounts where you are the primary account holder as NRO accounts.
Read also:
Can you convert your savings account to NRE account?
Who is NRI?
according to ICICI Bank NRI Page FAQs:
An NRI is an Indian citizen who resides outside India:
(a) for the purposes of employment or carrying on any business or profession;
(b) in circumstances indicating the intention to remain outside India for an indefinite period;
(c) any Indian national on deputation outside India for a temporary period in connection with employment.
According to HDFC bank Website, below is the process to change NRI status in all accounts.
Documents required for conversion of account
- Resident of NRO conversion form. (Form to be signed by all holders)
- Self-attested PAN card or Form 60 (in absence of PAN)
- Self-attested copies of passport and visa to prove his/her NRI status.
- It is mandatory to obtain the foreign address from the customer and is mentioned on the account conversion form.
- Self-attested address proof (either Indian or foreign proof) should be as per the list of acceptable proofs.
In case the customer (whose status has now changed to NRI) is a joint/second holder in the resident account, in such cases, the customer is required to additionally submit a declaration along with the above conversion form and KYC documents.
How to submit a conversion request
1) Non face to face application
a) Request can also be submitted through registered email id (scanned copies of self-attested documents need to be submitted)
b) The request can be submitted through non-face to face basis on the physical request received through courier/post/mailbox etc. (Self-attested documents need to be submitted))
2) Face to face application
All KYC documents should be self attested by the customer.
All the documents must be signed in the presence of the bank officer and all the KYC documents will be verified by the bank officer against the original.
Note that according to the ICICI Bank website, “after your re-designation” resident savings account In NRO Savings Account, the account number will remain the same and funds from Resident Savings Account will be automatically transferred to NRO Savings Account. You will not be required to submit proof if your Indian address is not being changed. However, if it has changed you will need to submit proof. Proof of current (i.e. foreign) address is mandatory.”
important point to note
1) Debit Card: The International Debit Card linked to the resident account will be hotlisted while the new RuPay NRO Domestic Debit Card or ATM Card can be re-issued for re-designation. NRO account Provided that the request for issuance of RuPay Debit Card is submitted on the conversion form.
2) Current Reimbursement Account: Current Reimbursement Account can be closed or if you want to continue to maintain the account it will be converted into Current Account – NRO, however AMB- Average Monthly Balance on the said account will be required and this AMB will be calculated. This will be done on the basis of the branch in which you have maintained the said account.
3) Joint Holder Feature:
a) Resident joint holder in NRO account:- Any resident individual can be a second / joint holder in the NRO account with the mode of operation as “Former or Survivor”. Only 1 resident individual can be added as joint/second holder in the NRO account. Such resident joint holders can also be mandate holders in the NRO account for ease of operation of the NRO account in India. The NRI customer has to submit the mandate form and the resident individual who is being added as the mandate holder and the mandate holder will have to visit the branch with original copies of their photo ID and address proof and also sign the said form.
b) NRI Joint Holders in Resident Account: NRI individuals can be joint/secondary holders in any resident account under any type of operation i.e. JU, JAO etc. However in such cases the NRI subscriber is additionally required to submit a declaration.
4) Submission of Requests: Account conversion request can be submitted at home as well as non-domestic branch and can also be submitted through registered email id which is currently updated in bank records.
5) TDS Applicability: TDS on interest earned on NRO savings account will be applicable after the account is converted into NRO. TDS on interest earned on Fixed Deposit after conversion will be applicable from the date of completion of the last quarter (Reinvestment FD) or the last interest payment date (Interest Paying FD).
What happens to your FD opened as a resident?
As per ICICI Bank FAQ, “As per RBI regulation, once you have attained NRI status, you have to re-designate the FD opened as a resident of NRO FD. Please note that NRO FD Interest earned will be taxed @ 30.9%.