How an NRI Account Makes It Easier to Support Family from Abroad

For NRIs, managing finances and sending money home is crucial. NRI accounts support daily expenses, gifts for occasions.

Most Non-Resident Indians working abroad feel the need to have a convenient way to manage their finances and send money to their family in the home country. This is when NRI accounts prove to be useful. 

How an NRI Account Makes It Easier to Support Family from Abroad

In this article, we’ll cover in depth about NRI account types, features to look out for and how you can apply for one.

Types of NRI Accounts

Broadly, there are three NRI accounts you can choose from basis your needs. Here is a brief overview of different types of NRI accounts. 

• Non-Resident External (NRE) Accounts: If you want to manage your income abroad and send money to India regularly, then a NRE savings account can be a right choice for you.
• Non-Resident Ordinary (NRO) Account: NRIs who want to manage their income earned in India may choose to open an NRO savings account.
• Foreign Currency Non-Resident (FCNR): This type of account is ideal for NRIs who want to deposit their savings in a foreign currency such as USD, GBP, EUR, etc.

As an NRI, you can opt for all three types of account while residing abroad, this will not only help in managing your personal finances but also any investments you plan to do. 

Key Use Cases of NRI Accounts for Supporting Family in India

Here are a few use cases where an NRI account becomes essential for both NRI and their families back home:

1. Daily Expenses

Sending money to home country is one of the most common uses of NRI accounts. This helps in covering groceries, utilities, any bills that are due and other household needs. Family members living in the home country can also withdraw cash for any purchases.

2. Special Occasions

NRIs can also send their best wishes through gifting money for birthdays, weddings or festivals. The money gifted is exempt from tax if it is sent to defined relatives through international bank transfers or from their NRI accounts. 

3. Emergencies

For any unforeseen circumstances, NRIs often require sending money quickly, where an NRI account that offers same-day transfers can be really helpful. This is also essential for them to cover urgent or uncertain medical expenses for family members.

4. Investments: NRIs looking to invest in financial assets such as property, mutual funds or other assets in their home country can invest through NRI accounts, making it easy to manage wealth while staying abroad. 

Digital Features for Managing Your NRI Account

When living abroad, checking digital features of an NRI savings account adds convenience and reduces everyday challenges. Here are some significant features you should look for: 

1. Online Account Opening: Nowadays, most banks offer an online account opening procedure, this takes away the hassle of visiting the branch. Online KYC makes the process completely paperless and quick.
2. Mobile Banking: Access your account from anywhere with an all-in-one mobile banking app that has features to manage and track your finances.
3. Digital Money Transfers: Since most NRIs transfer money regularly, digital money transfers that are quick and secure are preferred over traditional money transfer options. 
4. Digital Portfolio Management: To those who need to manage their portfolio, having an online platform to manage their portfolio can be beneficial. It helps make better financial decisions. 

Documentation Checklist for Opening an NRI Account

Before opening an NRI account, make sure you have the documents needed to complete the bank’s Know Your Customer (KYC) process smoothly. Here’s a quick checklist:

1. Proof of Identity: Valid passport (photocopy of important pages)
2. Proof of NRI Status: Work permit, valid visa, residence permit, or overseas resident card.
3. Proof of Address: 
   1. Foreign address proof: utility bill, rental agreement, driving license, or bank statement from your country of residence.
   2. Indian address proof: If applicable with the banks.
4. PAN Card
5. Passport-Size Photograph
6. Proof of Indian Origin: Overseas Citizens of India (OCI) card or Person of Indian Origin (PIO) card.

Some banks might also require documents such as FATCA/CRS declaration for tax compliance, income proof or tax return and cancelled cheque of your bank account. 

Taxation on NRI Accounts

When it comes to taxes on NRI accounts, it is important to know that it is only applied for income earned in India. While the NRO interest is taxable, the NRE/FCNR interest is not. The income tax exemption for non-resident Indians (NRIs) under the new income tax regime in 2025 is INR 3 lakhs. The following are subject to NRI income tax:

• Income from Salary
• Income from Property
• Income from Other Sources
• Income from Capital Gains

Conclusion

When you’re living abroad, an NRI savings account such as an NRO or NRE account helps you support your family in India. Choosing the right one makes remittances simple and efficient. It also ensures your earnings are managed in a compliant and convenient way. Most accounts offer digital banking features that make personal finance management seamless for NRIs.

Note to readers: This article is part of HT's paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.

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