Savings Account | NRE Account: Facts About Converting Savings Account to NRE Account | The Economic Times

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change account type

Your existing Resident Indian Savings Bank account cannot be converted into a Non-Resident External (NRE) account. This is because the purpose of NRE accounts is only to help you save your income from abroad. As per SBI NRI FAQ page, “You can re-designate your existing account to NRO account. To change your account, please download a standard request letter from ‘Download Form’ by clicking on ‘For Conversion of Resident Indian Savings Bank Account to NRO Savings Bank Account’ on change of residential status and post it to your home branch /Send with courier. Supporting documents mentioned in the letter.

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How to convert resident account to NRI account?

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How to convert resident account to NRI account?

Many Non-Resident Indians (NRIs) handle their savings or income received in India using Non-Resident Ordinary (NRO) accounts. You can receive money from this account in both Indian and International currency. However, since NRO accounts are stored in Indian currency and cannot be freely repatriated in any foreign currency, only Indian currency can be withdrawn.

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Penalty for not making changes in NRO account

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Penalty for not making changes in NRO account

According to the DBS Bank website, “Continuing your resident savings account after acquiring NRI status is considered illegal under the Foreign Exchange Management Act (FEMA) guidelines and may attract heavy fines. Under the Act, Any person who fails to comply with the guidelines is liable to pay a fine of up to 3 times the amount included in the existing Resident Savings Account or Rs 2 lakh if ​​the amount is not quantified.Additionally, on the first day of intervention A fine of Rs 5,000 is to be imposed every day till the fine is paid.

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Required Documents
These are the documents required to convert savings account to NRE account as per HDFC Bank website.

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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.

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Self-attested address proof (either Indian or foreign proof) should be as per the list of acceptable proofs.

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remember
If a customer (whose status has now changed to NRI) is a joint/second holder in the resident account, in such cases, the customer will also have to submit a declaration along with the above conversion form and KYC documents.

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