Can I send money directly to the bank account from there? How do they convert dollars or other currencies into rupees? Such doubts come up many times for most of us. NRIs who have settled for a long time abroad may be able to answer this question.
NRIs who have moved abroad and settled abroad earn the currency of the respective countries in salary or another form. In case of remittance of such money to a person in India or to a bank account in India. NRIs must first take an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account.
What is the difference between NRI and NRE?
NRI is the status of an individual. NRI stands for Non-resident Indians (Indian citizens who have migrated to other countries for business, job or study, etc.). While the NRE (Non-resident External account) is a bank account for NRI. In NRE money can be remitted by NRI from the country they are working to India.
Can NRE and NRO accounts be opened from abroad?
Currently, almost all banks in India have the option of opening these accounts online. That means. NRE or NRO accounts can be opened in India from abroad.
Is money transferred from overseas to India taxable?
As NRI/PIO (Non-Resident Indian/Person of Indian Origin), the overseas income and transfers in foreign currency are exempt from Indian income taxes. However, the account in India has to be designated NRE or FCNR. Interest earned on NRE and FCNR accounts is exempt from income taxes.