Operating/Opening NRI accounts while waiting for OCI

A

Amicus

Registered Users (C)
On becoming US Citizens, my understanding is technically we are no longer NRI's. We get parity with NRI's only after OCI.
How does it affect NRE/NRO bank accounts?

Can we continue to operate existing accounts?
Can we open new NRI accounts?

So long as OCI could be obtained in few days, this was not an issue. But with OCI taking a minimum of 2-3 months at some CGI's, what is the impact? Is there some grace period?

Indeed the banks don't know unless we inform them about it. But are we required to inform them?
 
Last edited by a moderator:
Amicus said:
On becoming US Citizens, my understanding is technically we are no longer NRI's. We get parity with NRI's only after OCI.
How does it affect NRE/NRO bank accounts?

Can we continue to operate existing accounts?
Can we open new NRI accounts?

So long as OCI could be obtained in few days, this was not an issue. But with OCI taking a minimum of 2-3 months at some CGI's, what is the impact? Is there some grace period?

Indeed the banks don't know unless we inform them about it. But are we required to inform them?
Click to expand...

I recently opened my NRE/NRO accounts at Citibank. The forms don't ask for OCI status and have no place to specify that. So I am assuming having OCI status has no bearing on opening or operating these accounts. I am sure having OCI/PIO does make a difference if you are doing property or investment transactions in India.
 
akgarg said:
I recently opened my NRE/NRO accounts at Citibank. The forms don't ask for OCI status and have no place to specify that. So I am assuming having OCI status has no bearing on opening or operating these accounts. I am sure having OCI/PIO does make a difference if you are doing property or investment transactions in India.
Click to expand...

thanks for the reply. so, did you just give copies of the US passport as proof of non-residenc instead of GC?
 
Amicus said:
thanks for the reply. so, did you just give copies of the US passport as proof of non-residenc instead of GC?
Click to expand...

Yes, copies of US passport and driver's license (latter as proof of current mailing address) - both notarized.
 
Amicus said:
Thanks again for the info; that helps.
Click to expand...

Just to be sure what I said was accurate, I asked the Citibank rep in Fremont, CA, and he replied: "And as far as OCI process is concerned, it doesn't change anything as far as the operation of the accounts are concerned."
 
What about regular Indian accounts which you guys might have had before you became NRI's do you still have them ?

I have several accounts which I opened a loooooooooong time ago. Don't know what to do with them.
 
dandan123 said:
What about regular Indian accounts which you guys might have had before you became NRI's do you still have them ?

I have several accounts which I opened a loooooooooong time ago. Don't know what to do with them.
Click to expand...

I had given the power of attorney to my mom to operate those accounts. If there isn't much money in there, you can just close it.
 
dandan123 said:
What about regular Indian accounts which you guys might have had before you became NRI's do you still have them ?
-----------------They still have them, but if you have not done any Transaction in 2-3 years and you send Check for that account the bank may say the account is INACTIVE or DORMANT, you can deposit the money in that account but if you withdraw then you have to make application to ACTIVATE the account and in 5 minute the can activate.By depositing money they will not activate but if you withdraw 5 rupees then that account is active. State bank of India keep the accounts active. ICICI keep the account active for 15 months from last transaction. Allahabad Bank keeps the accounts active. AXIX or Axis bank don’t keep the accounts active for long time (UTI bank is now Axis or AXIX)
I have several accounts which I opened a loooooooooong time ago. Don't know what to do with them.
------------------ when you visit India you can close few but keep 1-2 active and to keeo ACTIVE just withdraw some amount
Click to expand...

------------------
 
I also have stocks in a regular dmat account, the stocks are worth around 30 Lakhs currently even if I sell them it's going to be a problem bringing it back here and then transferring to a NRI account.

What options do I have ?
 
dandan123 said:
What about regular Indian accounts which you guys might have had before you became NRI's do you still have them ?
Click to expand...
In theory we are supposed to convert them to NR (O/E) etc. If we have something like PPFs, we can ride it till the end, cannot open new ones.
 
dandan123 said:
I also have stocks in a regular dmat account, the stocks are worth around 30 Lakhs currently even if I sell them it's going to be a problem bringing it back here and then transferring to a NRI account.

What options do I have ?
Click to expand...

----------------- If you sell them and inform that you are NRI then you have to deposit the amount into NRO account (non Resident ordinary account) you cant deposit in NRE account . You may have to pay tax and then can bring it. When visit India talk to CA they can help you.
 
bluemountain said:
Can I open a NRE/NRO from US? If so, which bank (Citibank, HSBC, ICICI) is better?

Thanks,
Click to expand...

I recently opened NRE+NRO accounts with Citibank (thru their rep in Fremont, California). It was quite easy to open the accounts - checkbooks and ATM cards arrived in less than 2 weeks. My son is traveling in India these days and he has had no problem withdrawing funds using his ATM card in Delhi as well as smaller places like Nainital and Haldwani in Uttarakhand. There is online access to both accounts (including NRE->NRO transfers; other way is not allowed), and you can also set up your regular US bank account for online remittance to your Citibank account.

No idea how the Citibank service compares with HSBC or ICICI.
 
ICICI is horrendus from here

I would advice not to try and open an ICICI account from here. Worst service, operators do not have a clue and they ask for tons of paperwork. You can open it when you are in India. The reason I still stick to them is that their remittance service is pretty good (I have not used the others). The money gets transfered in 3-4 days and the xchange rate is not bad. But they now have a Rs 25 fee on all remittances.
 
I have NRI/NRE accounts in Citibank as well as Axis bank (formerly known as UTI bank).
What I found was Citibank has some nuances. Their exchange rate is nowhere near competitive. For online access, if you clear cookies in your computer, then you need to set up your online account again - which also means that you cannot log in to your account from anywhere. Citi also withdraws tax every year on the interest automatically.

I have had decent success with Axis bank (they do have online opening of account - according to their website). The money transfer is done through remit2india to the NRE account which gives the best rate (to my knowledge) and takes about 5 business days to go to your NRE account. No fee is involved. You can transfer money to other local accounts (to your family etc) through the website. They also give an ATM card, which I used extensively during my last India trip.
 
Do all Indian banks directly deduct income-tax on interest from the account? Or is it just Citibank that does this? I am referring to NRI/NRE/NRO etc. accounts.

Thanks.
 
Question to those who have opened NRI accounts

State Bank of India's web site says that they cannot open NRI accounts at their US branches. Does this mean that while the US branches may accept applications, all processing and account maintenance happens in India?

Furthermore due to the reasons given by SBI, it would seem that all banks (Citi. AXIS, ICICI etc.) have the same above situation reg NRI accounts, right?

Can anyone please clarify, confirm/refute this? Esp those who have NRI/NRE/NRO accounts already opened.

Thanks.
 
realnewbie said:
Do all Indian banks directly deduct income-tax on interest from the account? Or is it just Citibank that does this? I am referring to NRI/NRE/NRO etc. accounts.

Thanks.
Click to expand...

If the annual interest is above Rs 20k, they can (read:will) deduct 30%. This is true for an type of account irrespective of our IT status.
 
You must log in or register to reply here.
Top