Is it illegal to have savings bank account once an individual is NRI ?

POSTED BY venkatasampad ON September 2, 2014 9:20 am COMMENTS (3)

Is it illegal to have savings bank account once an individual is NRI. Converting saving bank account to NRO account was one solution suggested in internet

Is it the right move ?

3 replies on this article “Is it illegal to have savings bank account once an individual is NRI ?”

  1. ritzshaan says:

    once u become nri , u cant keep saving account i.e convert it to nro or close that particular account ,
    if the bank comes to know that u are keeping both nre and saving account they will convert ur nre account into nro ( offcourse they will give u time frame to declare ur resident status and close saving account )
    i myself face the same issue and finally had to close all my saving accounts
    just keep nre/nro .
    rgds manish

  2. venkatasampad says:

    Thank you very much for your reply please. I will act as advised- thanks once again.-g.sreenivas.

  3. RahulMalhotra says:

    It is not illegal.

    And NRO option is better. You can avoid tax with NRO account. Please read more details about NRO/NRE accounts and go for it. In my opinion, this option is better than saving account because of tax or other factors and anyway you will be living outside India for long now. Interest on saving account is taxable in India. Same case goes with FD’s (Read the conditions for taxable amount limit etc.).

    Thank you.

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