Templates › India › Finance

NRI bank accounts: NRE and NRO (एनआरई / एनआरओ खाते)

Switch your Indian bank accounts after moving abroad: redesignate resident accounts as NRO, open an NRE account for money from abroad, update KYC and demat status, and keep track of tax deducted on NRO interest.

• India
• ~14 days
• 7 steps
• 4 documents

Curated by Raaya · Last reviewed Oct 2026

Steps

1. Understand NRE, NRO and when you must switch (एनआरई और एनआरओ समझें)

   1 day

   Under India's foreign exchange rules (FEMA), once you move abroad to live or work, you are a person resident outside India and should not keep ordinary resident savings accounts. Tell your bank promptly; it re-designates them as NRO accounts.

   NRE (Non-Resident External): rupee account for money you earn abroad. Fully repatriable, and interest is tax-free in India. You cannot pay Indian income into it.
   NRO (Non-Resident Ordinary): rupee account for income that arises in India, such as rent, dividends, pension or interest. Interest is taxable in India and banks deduct tax at source. Repatriation is limited (up to USD 1 million per financial year, with the forms the bank asks for).
   FCNR(B): fixed deposits held in a foreign currency, useful if you don't want rupee exposure.

   Tip: Interest that is tax-free in India can still be taxable where you live now. Ask a tax adviser in your country of residence.

   Remind me

2. Gather KYC documents (केवाईसी दस्तावेज़)

   2 days

   Banks ask for the same core papers for both accounts. Many accept copies attested by an Indian mission, a notary or an overseas branch of the bank, or a video-KYC call. Check what your bank accepts before you post anything.

   If you do not have a PAN, banks accept Form 60 for some accounts, but interest is then taxed at a higher rate.

   • Passport (photo and address pages)
   • Visa, residence permit or Blue Card
   • PAN card, or Form 60
   • Overseas address proof (utility bill, bank statement or registration certificate)
   • Recent passport-size photographs
   • Indian address for correspondence, if you keep one

   Indian passport with your current visa or residence permitVisa, residence permit or Blue CardPAN card (पैन कार्ड)Overseas address proof

   Attach my documents

3. Redesignate your resident accounts as NRO (खाता एनआरओ में बदलें)

   3 days

   Write to each bank where you hold a resident savings account, fixed deposit or joint account and ask to redesignate it as NRO. Most banks have a form for this in net banking or at the branch. Joint accounts with a resident relative can usually continue on a "former or survivor" basis with the relative.

   Also update your status with your mutual funds, insurance and demat account (a resident demat account becomes an NRI demat account), so that tax is deducted correctly.

   Tip: Do this soon after you move. Keeping a resident account as a non-resident is a FEMA issue, not just a paperwork gap.

   Online

   rbi.org.in

   Indian passport with your current visa or residence permitVisa, residence permit or Blue CardPAN card (पैन कार्ड)Overseas address proof

   Attach my documents

4. Open an NRE account for money you send home (एनआरई खाता खोलें)

   3 days

   Open the NRE account with the same bank if possible, so transfers between NRE and NRO are easy. Many banks let you apply online from abroad and courier the signed forms or complete video KYC.

   Fund it only with money earned abroad, by international transfer from your account abroad. Interest on NRE savings and deposits is exempt from Indian income tax while you remain a non-resident.

   Tip: Compare transfer costs. The exchange rate margin usually costs more than the fee; send larger, less frequent transfers.

   Online

   rbi.org.in

   Indian passport with your current visa or residence permitVisa, residence permit or Blue CardPAN card (पैन कार्ड)Overseas address proof

   Attach my documents

5. Point each payment to the right account (भुगतान सही खाते से)

   1 day

   Pay Indian bills, EMIs, insurance premiums and family support from the account that fits the money: income earned in India goes to NRO, savings from abroad go to NRE. You can move money from NRE to NRO, but not freely the other way.

   Tell tenants, employers paying old dues, and anyone paying you in India to use the NRO account. Update the bank mandate for loan EMIs (NACH) if it still points to a closed resident account.

   Tip: Keep a short list of which account pays what. It saves time at tax-return time.

6. Check tax deducted on NRO interest (टीडीएस जाँचें)

   1 day

   Banks deduct tax at source on NRO interest at the rates for non-residents, which are higher than for residents. Check Form 26AS or the Annual Information Statement on the income tax portal once a year.

   If your total Indian income is low, you may get some of this back by filing an Indian return, or apply in advance for a lower deduction certificate. To use the India–Germany or another tax treaty rate, banks usually ask for a tax residency certificate from your country and Form 10F.

   Tip: Ask the bank for an interest and TDS certificate every April. You need it in both countries.

   • Download Form 26AS / AIS from the income tax portal
   • Get the yearly interest and TDS certificate from the bank
   • Decide whether to file an Indian return to claim excess TDS
   • Keep copies for your tax return where you live

7. Yearly check: KYC, permit expiry and tax papers (वार्षिक जाँच)

   1 day

   Once a year, update your KYC with the bank if it asks, send the renewed visa or residence permit, and collect the year's interest certificates.

   If you return to India for good, tell the bank: NRE and NRO accounts are converted back to resident accounts, and FCNR deposits can run until maturity.

   Tip: Set this reminder for April, right after the Indian financial year ends.

Documents you'll need

Official sources

• Reserve Bank of India (FEMA rules for non-resident accounts)
• Income Tax Department e-Filing portal (Form 26AS, AIS, Form 10F)

Related templates

• Income Tax Filing (ITR)8 steps · ~9 days · 8 documents
• PAN, Aadhaar and NRI tax status (पैन, आधार और एनआरआई स्थिति)7 steps · ~10 days · 4 documents
• Business Loan Application8 steps · ~19 days · 6 documents
• GST Registration (जीएसटी पंजीकरण)8 steps · ~20 days · 7 documents

All templates