“NRI BANKING”

A Sypnosis submitted to SYDENHAM COLLEGE OF COMMERCE

AND ECONOMICS,MUMBAI

For the degree of Bachelor in Banking and Insurance

Submitted by:
Sanyam Chopra
Seat No.-3184202

Submitted to:
Dr. Anil R. Chougule
M.A.,NET,M.PHIL.,Ph.D.
Assistant professor,
Dept. of Economics
Sydenham College Of Commerce And Economics,Mumbai
INTRODUCTION:-
"With a view to promote the usage of INR products by persons resident outside India, it has been
decided, in consultation with the Government of India, to expand the scope of SNRR Account by
permitting person resident outside India to open such account for external commercial borrowings
in INR; trade credits in INR..." published by The RBI.
This statement proves that NRI is one of the important factor which is promoted by the government
in the growth of Indian economy. This study aims to examine the role of NRI Banking in the
economy of India and worldwide.
If you are a Non-Residential Indian (NRI) or a Person of Indian Origin (PIO), you will have
different banking and investment needs. Since you are residing abroad, most of your income and
savings will be in foreign denominations, e.g. US dollar, Euro, etc. As such, you might need an
account that would suit your requirements.
Many major banks and financial institutions in India offer the facility of opening an NRI Account.
These accounts provide numerous facilities with respect to the currency denomination,
transferability of the amount, tax, etc. But do you know everything about NRI Accounts? Let’s
learn in detail what is an NRI Account and the different types of NRI Accounts.

NRI Account Meaning:

An NRI Account refers to the accounts opened by a Non-Resident Indian (NRI) or a Person of
Indian Origin (PIO) with a bank or financial institution which is authorised by the Reserve Bank of
India (RBI), to provide various services.

Here are the types of NRI Accounts that you can opt for, to meet your financial requirements.
 Non-Resident External (NRE) Accounts
 Non- Resident Ordinary (NRO) Accounts
 Foreign Currency Non-Resident (FCNR) Accounts

As per the Foreign Exchange Management Act (FEMA) guidelines, it is illegal for NRIs to have
saving accounts in their name in India. It is mandatory that you convert all your savings
(money earned abroad) to a Non-Resident rupee (NRE)/Non-Resident Ordinary Ruppe
(NRO). Therefore, continuing to use the savings account in the home country can attract
hefty penalties.
Opening an NRE or NRO account is, hence, a viable option for Non-Resident Indians. It can
help NRIs in two following ways.
 One, they can send the money they earn abroad to India at any point of time.
 Two, they can also retain their income from India (via any assets) in the home
country itself.