10 Things to Complete before you become NRI

POSTED BY manish ON January 11, 2013 COMMENTS (118)

Are you leaving India in next few months or planning to move abroad sometime in future? Then you should be clear with a few points you should complete before you become an NRI. A lot of NRI readers come up with various issues they face, because they never thought about completing few tasks which could have saved them from lots of worries and paperwork. Lets look at 10 things which a person should complete before he/she becomes a NRI (Non resident Indian)

10 things to complete before your become an NRI

10 things to complete before you become NRI and Leave India

1. Take a Term Insurance

One of the big issues NRI’s face is taking a term plan through a Indian insurance company. It’s always a good idea to take a term plan and then leave the country, otherwise later it gets really tough to get a term plan, for which you will have to visit India and also it also gets quite difficult to opt for online term plan.

So before you become a NRI (Non Resident Indian) , complete this step. The premiums you will pay will be lower.

2. Take Health Insurance

Just like term plans, it’s tough to get health insurance once you become a NRI. After becoming a NRI, you will have to visit India for  health checkups and there is more documentation and hassles in the process. Health Insurance is something, you should take anyways , so why wait? Just take it anyway.

3. Open PPF Account

NRIs cant open a fresh PPF account, so before you become a NRI and leave India, open a PPF account. You can open PPF account in ICICI bank, SBI bank or at the Post office. NRI’s can always invest money in their existing PPF account which was already opened by them before leaving India.

4. Convert your Saving bank account into NRO account

A lot of people leave India only to realize later, that they need to open a NRO account in India, and then get into the whole process. Rather than doing it later, why not convert your existing saving bank account into NRO account just before leaving India?  NRIs can deposit all the Indian income into their NRO account and also make payments like EMI payments, and other kind of investments from their NRO account. All it takes is 2 photographs, and a copy of your passport and visa.

5. Connect your Loan Account with your banking account for online payment

A lot of people who become NRI (Non Resident Indian), have a home loan running, for which they have to still pay EMI’s . At times, they want to prepay home loan as fast as possible, because they earn more money outside India. But then the issue is – how to make prepayment when they are outside India? The best option here, is to connect your home loan account with your bank account, so that you can make prepayment to your home loan using NEFT transfer.  Its a good idea to do this before your leave India and try some prepayment just to make sure it works. It might happen that you might need to visit the bank for this, so better complete this before you leave India.

6. Prepare a Power of Attorney 

There can be many things which require your presence in India after you have become an NRI, like if you want to make any real estate transaction or want to operate your bank account etc. It’s always a good idea to have a bit of foresight  and see if you might want to prepare a power of attorney. Power of attorney is a legal way of giving power to someone to act on your behalf. Just choose some trusted family person or a friend. You can also make a power of attorney which expires at some stipulated time.

7. Make your mutual funds accounts online

A lot of people still want to transact in mutual funds after they become NRI, but they have no easy way out at that time. It’s always a great idea to make sure that you open a online account for mutual fund investing while you are in India. For this, you can open a online account with Jagoinvestor team and have all your transaction online

8. Open a NRE account 

If you want to invest your earnings into India and want to get it back in the foreign country (repatriation) , then you would need a NRE account. You can not deposit the local money like interest from FD, rental income etc into the NRE account. So if you have this kind of requirement, then better open a NRE account. The Fixed Deposits rates on NRE accounts are quite attractive in Indian Banks.

9. Sell your shares and open a new NRI demat account

Once you become an NRI, you will not be able to sell off your existing demat account shares which you bought before becoming a NRI. You can open & operate a NRI demat account. So before you become an NRI, a good idea is to sell off the existing shares and take back the money or the another option is to open a NRI demat account and transfer your existing stocks to this new account.

10. Update your KYC 

There are different processes for residents and NRIs for various kind of financial products. Like, if you become an NRI and want to do something with banks, mutual funds, life insurance policies (traditional or ULIPs), you will first have to update your KYC and only then can you do something. So its always a good idea to update your KYC, before you become an NRI. This will save you with lots of hassles.

Conclusion

If you follow these 10 things before you become an NRI, you will have a really peaceful time abroad and will not have to get involved into the mess of completing the things, most NRIs miss. While you might be excited to go abroad, better not miss out on these points.

Are you planning to leave India and become NRI Soon ?

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118 replies on this article “10 Things to Complete before you become NRI”

  1. Omar says:

    Hi,

    I had purchased Apollo Munich optima restore (5Lac) policy in 2014. I moved (work) to dubai in mid 2015. The policy is due for renewal. Since I’m an NRI now, should I continue my policy? I’m 29 now. If I purchase once i return which I see after 10-15 years, would i be any different apart from premiums and medicals test?

    1. I suggest you continue it. It will still cover you . Its not a big cost to you

  2. ram says:

    Good morning folks, I am Indian by birth. I become Canadian citizen in 2001 can I buy life insurance in India what is policy can anybody help me I have searched all the web all the web nowhere it says that i can buy need help deeply. thank you.

    1. NO , I dont think you will be able to buy this, as its only for Indian Citizen !

  3. KiranSathyan says:

    Hi Manish,

    Great Article…:)

    I have one SBI Savings Account…I am out of India for last 8 Months…I am doing the remittance to this saving account only.

    1. Am I an NRI ?
    2. Should I convert this Indian Salary SB account to NRO?
    3. Is it possible to convert this account to NRE? Or should I open an NRE account in some other branch?
    4. What is the real difference between these two types, NRE and NRO?
    5. Is it possible to avoid TDS from Fixed Deposits created from this Account after converting it to NRE/NRO account?

    Thanks in Advance…

    Thanks & Best Rgds,
    Kiran Sathyan

  4. Nitin says:

    Hi Manish,

    Sorry for posting on an old article.

    I need advise in regards to PPF for NRI.

    I have been non-resident for tax purposes since 2011.
    I opened PPF account with ICICI. Nobody at bank questioned about my tax status.

    I recently learnt that NRI’s can not open PPF accounts.
    I suppose best bet is to close PPF account.
    However, rules also say that PPF account can be closed per-maturely only in case of account holder’s death.

    I don’t know really how to proceed in this scenario? How can close my PPF account? Is dying only option 🙂

    1. BEtter tell them about your tax status and they will return your money in that case !

  5. Simranjeet says:

    Hi Manish

    I have a pretty basic question. How do we define NRI. Is it someone living in for > 182 days in a FY outside India or there are some factors involved.

    Few scenarios for your review. Kindly respond

    1) If i go abroad and may expect to come back in 8 months in the same FY, then am I suppose to take care of above points before I leave India

    2) Assuming I did took care of above points & end up coming back in 4 months in the same FY, then what I am expected to do

    3) Or all of these points apply only when you spent few years consecutively abroad or plan to do it for sure once you leave India.

    Looking forward to your response.

    Thanks
    Simran

    1. The points mentioned in the article are only for those who are going to be NRI for a long period of time like more than 3-5 yrs !

      1. Simranjeet says:

        Thanks.

        So living abroad for a year or two & continuing your investments as is in India through your resident account will not be illegal. Is there any impact of Income Tax act which suggests you become NRI if you stay abroad > 182 in FY.

        1. If you are making the investments then YES. But most of the poeple who go out for 1-2 yrs generally dont disclose this to their banks etc. ideally one should !

  6. Neel says:

    Pls, tell me what should I study too became an NRI. What education is required. I’m in fyjc. Commerce section.

    1. Its not the educational qualitifation which makes your NRI, but your skills and what value addition you do in your area of work

  7. Vivek says:

    I am a resident of US from a tax purpose. I have a resident bank account in India. I have a home loan and own shares and mutual funds (which I took as status resident of India). If I change my status in my Indian bank to NRO – what would be the impact to –

    1. my home loan payments?
    2. shares and mutual funds that I own through ICICI direct?

    1. 1. No changes.
      2. YOu wont be able to further invest in few funds ..

      1. Vivek says:

        Thank you!

  8. puneeth says:

    does health insurance really help if i stay abroad. moreover if im paying health insurance here in UK.

    1. Not if you are having plan of staying out of India

  9. Sujith says:

    Hi Manish,
    I have a question on updating KYC. Certified proof of address is given as a required document to update KYC to NRI. So it looks like this is not something which we can do before leaving India. Can you please clarify?
    Thanks,
    Sujith

    1. Yes, you will be able to do it mostly before leaving India only!

  10. AbhAy says:

    Hi Manish
    I jst want 2 aSk u tht wht courses should I”vE 2 do 2 bcum an NRI ?
    n cn I bcum NRI by taking commerce stream also…???
    hoping fr a fast reply frm u…

    1. YOu just need to go to some other country to become NRI, not by doing a course !

  11. bhupat says:

    Hi, Manish, your article is very much informative, If noticed early, i would have read that before i became NRI.
    Anyways, my query as below:
    1. I have recently taken term insurance plan from HDFC life and LIC declaring my NRI status and supporting document and paying premium from my HDFC NRO account. I hope this is the right way, please advise.
    2. I have normal resident sharekhan trading account and icici bank linked with that account, Some time back i send request to sharekhan to change my bank account from ICICI resident to HDFC NRO account and they rejected my application with reason status can not be change. Shall i ask ICICI bank to change my status from ordinary to ICICI NRO? I haven’t tried yet with ICICI, but if they do agree to change then what went wrong on changing bank details with sharekhan? i did not get the reason.
    3. I have home loan from SBI and icici Normal account is linked with it, so i need to periodically feed that account from HDFC NRE. Changing my ICICI account to NRO will solve the problem or i need to inform SBI Home loan as weel on change of my status to NRI.

    1. 1. Yes

      2. First ask your bank to change your bank account status

      3. Only the bank account from where EMI is going needs to be changed .

  12. Santanu says:

    Hi Manish,

    Thank you for the very informative post. I will be travelling abroad for studies in couple of weeks. I have one question.

    I have few investments in ELSS. What happens to them when I open a new NRI Demat Account? And will the proceeds be taxed after selling the units even if they are tax savings?

    Thanks and Regards,
    Santanu

    1. No , they wont attract any tax after selling it in 3 yrs due to long term capital gains tax being tax free

  13. Ruchika says:

    Your article is informative. I would be traveling to UK to persue for MS in September. Can you suggest me an Indian Bank to consider opening an NRI account?

    1. SBI , ICICI are good options !

  14. abhishek says:

    HI MANISH
    I HAVE BEEN LIVING OUTSIDE INDIA FOR PAST 2 YRS
    SO FAR I HAVE NITHER OPENED MY NRE NOR NRO ACCOUNT
    I HAVE BEEN TRANSFERRING MY MONEY INTO MY ADN MY WIFE’S RESIDENT ACCOUT (MR WIFE IS ALSO LIVING WITH ME FOR LAST 1 YEAR)
    THE MONEY WHICH I TRANSFER I INVEST INTO STOCKS THROUGH THE DEMAT ACCOUNT
    NOW I WANT TO GET THERSE SHARES TRANSFERRED TO MY NRE OR NRO ACCOUNT CAN IT BE DONE
    AND WHAT ARE THE TAX IMPLICATIONS IF ANY
    THANKS IN ADVANCE

    1. Yes, it can be done. You should get in touch with your demat providers on this . There should not be any taxation issue as its just transfer and not sale

  15. Jai says:

    Hello Manish,

    I am moving out of India this year and exploring on things to be done. This is very informative article. Great job!!!

    Few more questions:
    – I already have a PPF account. Can I continue the same or need to close it?
    – I have a demat account. Can I transfer the stocks to my mother demat account? Do you see any issues with the same?
    – I have one house which will be on rent. Can I ask the tenant to deposit money in my mothers account as she will need it in India as now my parents will be living alone
    – I have two loan accounts. Do I need to inform my banks regarding my change in status.
    – I have another loan account with my father where he is main applicant and I am co-applicant. Do I need to inform the bank for the same as well.

    Kindly let me know.

    Thanks,
    Jai

    1. 1. You can continue it till maturity
      2. No issues, why not not sell it and just gift the money to your mother. That would be faster
      3. Yes, why not !
      4. Not exactly, you just need to take care of EMI
      5. No need

      Manish

  16. Barnali says:

    Hi,
    Great article but I have some questions. I have been living abroad since Aug 2005 and never paid much attention to the bank rules.
    a) I have a resident SBI Savings Bank account jointly with my father. Can I continue to have it?
    b) I send sometimes money to this account which is invested in Term Deposits. My bank has been deducting 10% tax on interest too. I have no other income in India. Can I claim tax refund by e-filing?
    c) I have recently opened an SBI PPF, but didn’t know that NRIs are not eligible. How can I close it?
    Many thanks
    Barnali

    1. Hi Barnali

      1. Yes you can still have it , but better share with bank that you are out of India now

      2. Yes, you can do that

      3. Yes, you should close it

  17. BSR says:

    Converting the visitor visa to Green card,what ois the status of the person.Still Indian Individual or NRI?

    1. You need to explain more about your question !

  18. Nirmal Agarwal says:

    Hi,

    I read your article. Also I read RBI FAQ’s. Can you please clarify on the below points :

    http://www.rbi.org.in/scripts/FAQView.aspx?Id=52

    1) I have PPF account opened 6 years back. Can I still invest in it ? In the above, it is mentioned that :
    Note : NRIs are not permitted to invest in small savings or Public Provident Fund (PPF).

    2) Is it illegal to maintain already opened savings account ? Do I need to convert them into NRO ?

    1. 1. Yes you can still invest in PPF if its already opened by you ..

      2. Yes, you need to convert it to NRO !

      1. nirmalagarwal says:

        for 2nd question :
        Is there a time limit for that ? Also what happens to mutual funds already going by SIP from those accounts ?
        And Dividends coming to the account from stock holdings ?

        1. Just inform the bank that you are now NRI and they should consider the account as NRO , they will do the needful ..

          Manish

          1. nirmalagarwal says:

            Thank you so much Manish

  19. jaimin says:

    hello manish i have few doubts related to NRI:-

    As right now i m NRI:-

    1.I would like to invest in mutual fund with NRE acount, will u tell me what are the taxes i have to pay for that?(reason behind is only if taxes are not applicale then i will invest via NRE or else i will transfer to my normal acount)

    please elobrate what are the other taxes i have to pay for withdrawal from NRE acount for equity and MF(all kind)

    1. If you invest with NRE account, there is no tax applicable in India, you can take full amount from that account. but note that you will have to take back your money outside India only ..

      1. jaimin says:

        but note that you will have to take back your money outside ?

        still don’t get this what you want to say means in NRE account?

        1. You cant use that money in India , it has to be taken back out of country !

          1. jaimin says:

            Manish you are confusing me.

            my father is mandatory holder in icici acount in NRE acount he can withdraw money via ATM/cheque.

            then how you say it has to be taken out of country!!!

            1. Err.. my mistake

              Sorry, the main thing is NRE account money is repatriable .. , It was my mistake !

            2. jaimin says:

              Thank you for your swift response!!

              i have one more confusion related to that:-

              i have 2 year visa for employment in oman.

              in this time i start SIP via NRE acount,after 2 years i will come back to india then shall i have to change my bank acount from NRE to normal acount or else i will contiune make payment with my NRE acount.

            3. At that time you should anyways share with you bank that you are now back in India and not an NRI anymore .. bank will direct what is to be done !

            4. jaimin says:

              manish i have one more doubt right now i at present status not eligble to called NRI so may i register as individual investor and then when i will be in criteria for NRI i will updtae kyc.

            5. Yes surely, you can do that !

  20. Kishore says:

    “You can not deposit the local money like interest from FD, rental income etc into the NRE account. So if you have this kind of requirement, then better open a NRE account.” Is there a typo here? In both sentences the use of NRE is intentional? I was trying hard to understand the difference between NRO and NRE accounts, and I believe if the above two sentences are corrected, it will give a good idea.

    Thanks for your article.

    1. I second one is NRO , not NRE , I just realised when you pointed it out !

  21. spguptahyd says:

    My son is an NRI. He has savings account joint with his mother. Can this joint account continue?is there any restriction to continueing this account. Can he pay
    LIC premium etc from this savings account.Is it necessary that he canpay LIC premium etc only fro his NRO account, which he has separately opened after becoming NRI

    1. He can pay it from any account .

  22. BIBU MATHEW says:

    Hi, I have been working in Bangalore for the past 6 yrs in the same company. I am now migrating to Canada and will be converting my ordinary savings to an NRO account and also opening an NRE account. I am due to get my PF as I have resigned and the amount will be due to me in 3 months by which time I will be in Canada.
    My doubt is once my savings account is converted to an NRO account, can the PF office deposit the amount to my NRO account, or do I need to maintain an ordinary savings account.

    1. That should not be an issue I guess, but anyways better get the info from EPFO itself, I suggest file a RTI to them on this matter

  23. Nikunj says:

    Hi Manish,

    1) I opened a PPF account before going out of india.
    Now when i check the RBI website: i see a note on RBI website
    “http://www.rbi.org.in/scripts/FAQView.aspx?Id=52”
    Note : NRIs are not permitted to invest in small savings or Public Provident Fund (PPF).

    What does this mean? is it the same what you are saying ? Means if i already opened a PPF account, i can deposit into it..Right?

    2) Before moving out of india, i did not open a NRO account.
    I am transferring my dollar savings to my indian savings account(via repatriation).
    3) When someone transfer money from overseas into his/her savings account. is there any implication from the income tax point of view?

    1. Nikunj says:

      for Point 2, my question is this
      If a person who left India without opening NRO account, is it proper to maintain normal savings account in india ?

      1. Those accounts will automatically be considered as NRO !

    2. 1. You can not Open a NEW PPF account, but you can continue investing in PPF which you opened

      2. You old saving bank account is treated as NRO account, just share this with your BANK that you are now NRI

      3. No very clear !

  24. Aditya says:

    Hi Manish

    Question related to NRI please, I have worked for 10 years in UK and returned to India in Jan 2011. Since then I am working from India (from my home for the same UK company). I transfer my monthly earnings in UK, to my NRE account once in 3 0r 4 months. I still hold Indian citizenship. I have opened a PPF account via ICICI in July 2013. Can I transfer funds to this PPF account from my NRE account? Assume it is legal to have an NRE account and contribute to PPF (as i think i will be considered a resident) ?

    Thanks
    Aditya

    1. No you cant do that from NRE account. You will have to do that form a regular account .

  25. Ram says:

    Dear Manish,

    Sorry to bring up a question in this old topic, but it looks like even if you have an online account like FundsIndia, you cannot credit money from your mutual funds into a NRE account? That sounds very silly to me. After all, it’s my money and I should be able to access it from abroad, right?

    So there are a lot of mutual funds stuck with my savings account. Is there no way to utilize this money when I’m abroad?

    1. How did you invest the money from ? If you had used the money from your NRE account for this investment, only then you will be able to get it back in same account because only NRE account allows repatriation . If this money was taken from normal saving bank account, then its not allowed by RBI . I dont think fundsindia has any role into this .

      Manish

      1. Ram says:

        Thanks Manish. It’s sad that I don’t have access to my own money overseas. So easy to see why so many folks prefer to invest elsewhere!

  26. suresh says:

    Hi Manish,

    I am NRI and opened PPF account 10 years back. I have two questions:

    1. I want to transfer my PPF account to ICICI bank. Can I do that in my next visit to India?

    2. Will I be able to to contribute after maturity (15 years)?

    Suresh

    1. Suresh

      1. Yes

      2. No , once the ppf matures, NRI’s cant extend it !

  27. raghavendra says:

    Hi Manish,

    I went to argentina for 13 months, but during that time i was having a chance to sell my shares in online, as i have sharekhan online demat account. Of course i did not do it, as no need for money.

    So how can we will be restricted to sell shares in online.

    1. You will not be restricted. Just thats its now allowed. If you are caught , then you might be paying penalities and whatever !

      1. raghavendra says:

        Ok, got it.

  28. Pani says:

    Hi Manish, Could you throw some light on tax implications on MF investments in India? I understand the Tax rules in India, but more interested in tax implications in USA. I read that all residents (irrespective of immigration status) of USA need to pay taxes on their global income, which includes Dividends, profit of selling MF units etc.,

    1. Not sure of US rules. Better check on our forum – http://www.jagoinvestor.com/forum/

  29. Ram says:

    Hi Manish,

    I believe there is a 90 day period for a person to become NRI. Can you clarify this? Secondly, what is this stupid rule that all the shares have to be sold immediately as NRI cannot operate a demat account? What kind of logic is this?

    1. Ram

      Its not like that. A NRI can not hold a normal demat account, hence when he wants to sell his old shares, he will have to do lot of paper work and open a new kind of demat and transfer his shares to them and then SELL, so instead of this, better sell it off before itself.

  30. Sanghmitra says:

    Hey Manish,

    “Before you become a NRI”. Are you implying the same reference for “Before moving abroad”?

      1. Sanghmitra says:

        okies..thanks

  31. Brian DSouza says:

    To open an NRE/NRO banks ask for proof of residence in the foreign country. How this is relavant is immaterial but this is mandatory without which they will not open an nre acccount for you..

    1. Thanks for sharing that. Yes, it might be required , if its not possible to open the account before you go, atleast enquire the process and complete it as soon as you can

  32. Anu says:

    Hello ,
    I have a question ,
    if i dont have a NRO account and i trasfer some money from abroad to my indian saving account….is it a problem ?
    is opening a NRO account is must?

    1. Yes, you cant do that . You need to put it in NRO or NRE account only

      1. Sanghmitra says:

        For the USA, one has to open a checking account for salary and register the same with Xoom or ICICI Money2India(If u have ICICI savings/salary account in India).
        This way you can transfer your savings from abroad to an Indian regular savings account.
        That’s what I have observed in case of H1 folks.

        1. Thanks for that information Sanghmitra …

          1. Sanghmitra says:

            Hey Manish,

            However I have been given different opinions about “can do-can’t do” transfer from Abroad account to own Indian Savings account.
            Are there any laws or legal issues in this regards for person on work visa/ dependent visa?
            Please let me know..

            1. What other opinions have you got , can you share which clashes ?

  33. Raja says:

    great series Manish.

    2 thing’s from my side.

    1. Get a new credit card with moderate credit limit. You may still need to buy some stuff online for you and family while abroad and the card would help.
    2. Get your existing mobile number to a plan which has a minimum monthly rental (vodafone has a plan at 145/- per month) for international roaming and free incoming. This should help the OTP related issues etc…

    Regards
    Raja

    1. Those are great points .. I am sure you did this when you moved 🙂

  34. Bhupesh says:

    Transferring share to NRI demat will be considered as sale and show capital for that year ?

    1. No , it will not be a SALE ,it will just be a normal transfer !

  35. The Administrator says:

    Hi Manish

    The informative article is very useful to many of our members of NRI Parents’ Association, Vadodara. We have displayed link of your article on our blog for the benefits of our viewers.

    Regards

    1. Thanks for sharing that with your members 🙂

  36. Ankur says:

    Can we take health insurance in India and go abroad. Is it possible to claim the medical expenses done outside India? If yes, let me know which company and plan.

    1. It does not work that way. Even if you go outside India, the hospitalization has to be here in India Only .

      1. Ankur says:

        Thanks a lot Manish for the reply. So, if I am living abroad, I need to take a health Insurance there only.

  37. Saurav Sinha says:

    Hi Manish,
    Wish U & JI Family a very happy, prosperous & safe new year!!!

    Great article, as usual & the timing cudnt’ve been better. Like i used to say earlier, there certainly is a connection. i’s very seriously thinking on this very topic few weeks ago.

    Few queries:
    1) Point no 9 says sell Ur shares b4 becoming an NRI, what if its kept as it is & not touched for a particular duration? Will the account become inoperative?

    2) Which of the accounts (NRE/NRO) will help in continuing with existing PPF account?

    Thanks & GOD Bless!!!
    PS – Missing MoneySights, any idea as to wen they’ll restart?

    1. 1. No it will not , nothing will become inoperative, its just a violation to operate a Demat account after you become NRI .so better be in rules

      2. NRO will be helpful , because you are investing the money in India and its suggested that you do it with NRO .

      Moneysights is not going to be back , they have shutdown finally ! ..

      1. Sanghmitra says:

        how about buying or redeeming MF under your demat a/c?

        1. Yes. its also one of the things one should compelte.

  38. Vasu says:

    Dear Manish, Thanks for such an informative article. Can you advise for people who are away from India for more than 183 days but still live in India as Indian citizen. For example, Merchant Shipping, Oil & Gas employees can achieve NRI status in a particular year by working abroad more thatn 6 months, where they are paid in foreign currency. But the problem is this stauts is not guaranteed every year. So is it necessary to wind-up existing resident account when becoming NRI for particular year? Some says, as long as a person lives in India , though having achieved NRI status he can still continue to maintain existing Savings Bank accoutn in India . Pls note, this section of people only have NRI status but still live in India. What is your advise? Thanks for your variety of helpful articles..

    1. Yea i can understand the issue . Why not do everything from a NRO account . As you will be in India, might be earning in India …

  39. Krish says:

    A very useful article. Wish this article appeared 6 yrs ago and I read it. I became NRI 6 yrs ago. Back then my personal finance knowledge was limited. Over a period of time, I could do NRO/NRE/MF accounts and streamlined loan accounts.

    I wasted a big time on PPF and Term insurance. I regret even today. I am not sure about the benefit of taking health insurance from India when the person and his family moves abroad. May be this could be useful after come back in terms of track record and lower premium.

    One thing that bothers me is equity trading account. The requirements really scares NRIs to open the trading and d-mat account. I tried 3 times and failed. However no regrets as I have online MF a/c and am happy with MF investing rather than direct equity.

    I see lot of NRIs continuing to operate resident account, equity account and buying insurance during India trips without declaration of NRI status.

    One more point. Both private and govt banks of India are not ready to open NRO/NRE account when you approach them as prospective NRI. Two banks (ICICI, HDFC) refused to open NRO/NRE accounts for me. Luckily SBI came to my rescue. However once you became NRI, all these banks ready to roll red carpet. It is easy to open the accounts from abroad rather than from India. May be the banks do not trust “about to move abroad persons”.

    1. Krish

      Thanks for sharing that points with all of us . It might happen that its easy to do things from abroad, as you discussed .. may be ..

  40. marshal says:

    Great piece of information
    What should be done in case of HUF account? Can I transfer shares in this account before leaving India?

    1. If you are going to come back anyways then better not do much !

  41. reema says:

    Gr8 article Manish. I have been out of India from last 1 year and got stuck with many things like home loan, OTP password for XX bank, can’t transfer money thr’ banks and many more. I am always asking mom-dad run thr’ banks and paper works which is painful at old age. I come back again to Onsite after 1 month vacation, could not just list up things what needs to complete, what remained, what if-then thoughts before leaving country.Very Very Thankful for this checklist.

    1. Thanks for appreciation . I know there are so many people who have suffered due to this .

      1. Sanghmitra says:

        Before leaving update your abroad mobile number for OTP purpose with local bank branch..Otherwise once left, you have to fill up number change form and fax it to Head office/ Defined branch of Banks…

        1. Thanks for that tip 🙂

  42. Venki says:

    A fine art from the pen of Manish :). Article would be very helpful to would be NRI.

  43. Sushil says:

    Manish, It was nice of you to create awareness by a new topic every week.
    Pls clarify the difference between NRE and NRO account in little detail

  44. Dhananjay says:

    Thank you Manish! Its really very very informative, you are doing amazing job. Please carry on. I wasn’t aware of 4-5 things among these. Cheers!!!

  45. Arjun says:

    Hi Manish, This is really very useful post. thanks a lot. just one question – If I convert saving account to NRO account, what about the existing EMI’s or mutual fund SIP where the amount gets debited every month from saving account. Do I need to inform every company about the change?

  46. siddhant says:

    Hello Manish,

    Another important part is to get your income tax documents in order, Normally the person going out of India remains liable to pay income tax for the Ongoing Tax year, & then Tax issues bite people, so it is better to get the clarity about return before leaving the shores…..

    1. Jegan says:

      Hi Manish,

      Why should I convert my SBI Savings Account as NRO ?
      My Case.: I have 2 Savings SBI Account.One is Salary Account another one is Personnel Account.

      I dont have MF,or Demat..I dont need it..

      I will be travelling to US in FEB for 1.5 Years..

      Now whats the benefit of converting my Savings Account to NRO ? Can i keep the accounts as it is ? or its mandatory to make it as NRO ?

      If i am not making as NRO account,Cant i transfer money in onlinesbi within my friends how i am currently doing in India ?

      1. Converting an account to NRO is a CHOICE , if you are not going to transact in that account, then dont do anything

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