Therefore, continuing to use the savings account in the home country can attract hefty penalties. You must convert all your savings (money earned abroad) to a Non-Resident External Account (NRE) or Non-Resident Ordinary (NRO) account.
Why do we have NRE & NRO AccountsĪs per the Foreign Exchange Management Act (FEMA) guidelines, an NRI cannot have a savings account in his or her name in India. Wondering how? Read on to find more about this. They also find it challenging to track bank accounts in a different country, and even when trying to repatriate money to their home account. An NRI (Non-Resident Indian) with earnings both abroad and in India often faces difficulties in managing his/her finances.
