As per RBI and FEMA guidelines, non-resident Indians are required to use Non-Resident Savings accounts in India. Unlike resident Indian bank accounts, NRI savings accounts have designated account sub-types to handle income from overseas and India separately.

Typically, there are two main types of NRI savings accounts. One is meant for depositing foreign income and allows funds to be freely repatriated. The other is used for managing income earned within India, such as rent, pensions, interest payouts, or dividends, and has specific rules for transferring money abroad. Each account type serves a specific purpose and is governed by different RBI guidelines.

Due to these differences, NRIs require more than one account to manage their income from different countries efficiently. This leads to the question of whether NRIs are permitted to have multiple bank accounts in India. Let us understand this in detail.

Understanding the Two Types of NRI Savings Accounts

The two main types of NRI savings accounts are:

A Non-Resident External Account (NRE........

© Forbes India