A Step-by-Step Guide to Opening an NRE/NRO Account

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.

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!