What do u mean by an NRI account in the banks?

Question

What do u mean by an NRI account in the banks?

Answer 1

Non Resident Indian's who live in foriegn countries and hold account in any Indian Bank that is what is called NRI account.

Answer 2

There are two kinds of NRI accounts - one that holds your money in the foreign currency until withdrawal or one that holds your money in Indian Rupees. I am not sure of the tax implications of the two though...Different banks give different foreign exchange rates, so that could be one of the main criteria when shopping around among the different banks.

Answer 3

As per the directives and guidelines of RBI, Indian and foreign banks operating in India can allow non-resident Indians to open, maintain and operate various deposit accounts with them - tagged as NRI accounts. These accounts are subject to Indian Banking Regulation Act and FEMA. Deposits in these accounts can be kept in any of the currencies of the basket or INR, and carry special rates of interests different from domestic rates on deposits.

The accounts can broadly be operated as normal bank account but of course subject to the two enactments sated hereinabove.

The conversion of currency into INR attracts the normal rates of conversion offered by the respective banks to its customers, with rider of some marginal good rates to the customers having good banking relations.

Each bank may also offer different sops, within permissible limits, to attract business of such accounts.