How to Open NRE/NRO Account: Step-by-Step Guide | Kotak.com

How to Open NRE/NRO Account: Step-by-Step Guide | Kotak.com

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A Comprehensive Guide on Inward Remittance for NRIs

Non-Resident Ordinary (NRO) and Non-Resident External (NRE) accounts are essential for NRIs looking to manage their income in India. While an NRE account is designed to manage income earned abroad, an NRO account is for the income earned in India through savings, rent, dividend, etc.

How to Open an NRE or NRO Account in India: A Complete Guide

If you’re looking to open an NRE/NRO account, we have curated a detailed step-by-step guide to help you understand the process, eligibility and some key points to remember.

Here’s what we’ll cover:

The different account options available
A quick guide on choosing the right bank for your NRI account
Necessary documents to open an NRE or NRO account
Key considerations before opening an NRE/NRO account

Choose The Right Type of Account: NRE or NRO

Both NRE and NRO accounts are designed for different purposes, which makes it important to understand the differences between them, so you can choose the right account for your needs.

Feature	NRE Account	NRO Account
Purpose	Manage foreign income	Manage income earned in India
Currency	Indian Rupees (INR)	Indian Rupees (INR)
Taxability	Tax-free	Interest earned is taxed
Deposit Source	Foreign earnings only	Indian or foreign earnings
Repatriation	Freely repatriable	Restricted (up to $1 million per year)

Example: If you earn a salary in the UAE and want to send money home to invest, an NRE account is ideal. But if you own a rental property in Mumbai, your rent should go into an NRO account.

Convert for Existing Resident Account

If you only need an NRO account, and you already have a resident savings bank with Kotak, it can easily be converted into an NRO account.

Compare Bank Programs and Benefits

Review the different account types, benefits, and services being offered. There are special offerings for students, mariners, and high-net-worth individuals, including premium banking programs.

Keep Your Documents Ready for opening NRO or NRE Account

To open NRO account or an NRE account, you require the following documents:

Valid Passport – should clearly display your name, photograph, place and date of birth, signature, issue and expiry dates
Valid Visa, Work/Residence Permit, or OCI card
PAN Card – Necessary if opening an account while residing overseas. If the customer is opening an account in India, he/she can give Form 60 is an alternative
Overseas Address Proof – if unavailable at the time of application (e.g., if applying right after getting a visa but before relocating), banks may allow you to submit the proof later or open the account from abroad

Keep in mind that the account opening process may vary depending on your country of residence. If you're opening an account from abroad, self-attested and notarized copies of your documents will have to be couriered to India.

Access Your NRI Mobile Banking Account

Once the accounts are active, check out the NRI mobile banking and net banking features offered by the bank. You can check Kotak's online banking services to make transactions, pay bills, and transfer money quickly. Kotak’s mobile banking app have over 200 services that make it convenient for you to manage your banking relationship with Kotak with ease.

Key Considerations When Opening an NRE/NRO Account

Here are a few points you should keep in mind before opting for an NRE/NRO account:

NRE/NRO accounts support a joint account facility. NRI accounts can be held jointly with another NRI or PIO.
Interest on NRE accounts is tax-free, but interest on NRO accounts is subject to 30% TDS.
Exchange rates offered are also an essential factor to consider when choosing the type of bank for your account.

Conclusion

Opening an NRE or NRO account is a relatively straightforward process when you choose the right bank. With only a few clicks, you can apply for your NRE/NRO account online and leverage the features and services of Kotak Bank NRI Accounts today!

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.