Non-Resident External Account (NRE): Benefits, Limitations, And More:

NRE stands for Non-Residential Externals and is a type of Non-resident Indian bank account. NRE bank accounts allow OCIs, NRIs, and PIOs to deposit their hard-earned money in India and use it for different purposes, including business or personal use.

Are you a Non-resident Indian, an Overseas citizen of India, or a Person of Indian origin, and want to deposit your money in India? If yes then the NRE bank account belongs to you. Want to know more about Non-Residential External accounts? Then you have landed at the perfect page now. In this blog, we will shed light on what an NRE account, its benefits, limitations, and more. So stay connected with us to know more about this type of NRI account.

What is an NRE account?

The first thing that strikes everyone's mind is What is the full form of an NRE bank account? So NRE stands for Non-Residential External Account and it enables citizens to deposit foreign credits from outside India into their bank account. It is another type of NRI bank account apart from NRO and FCNR. These accounts allow foreign citizens including NRI, PIOs, and OCIs to deposit foreign currency credits from outside India.

After getting familiar with what is NRE bank account it's time to lighten up their benefits. So to know the advantages and disadvantages of Non-Residential External accounts stay tuned with us.

Benefits of Non-Residential External Bank Account:

• Tax exemption: When we talk about the benefits of an NRE account then it is one of the best. If you are an OCI, NRIs, or PIOs card holder and have an NRE account then the principal amount and interest earned on this account is apart from Indian income tax.
• Repatriation: NRE account holders can transfer funds to a foreign account without any restrictions.
• Investment: This account can be used to invest in India and NRIs can avail or invest in Indian investment instruments.
• Family access: Another great advantage of this type of NRI account. Your family member living in India is authorized to access funds in an NRE account.
• High interest rates: Every account holder wants higher interest rates. If you have an NRE bank account then you will get higher interest rates than regular savings accounts.
• Safety net: if the account holder has died then the nominee can claim the funds.
• Joint accounts: Non-residential external accounts can be held jointly with another NRI

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Limitations of Non-Residential External accounts

• Limited deposits: When we talk about the limitations of NRE accounts then you can only deposit foreign currency in this account. The money earned in India cannot be deposited.
• Currency risk: Foreign currency deposits are exchanged for Indian rupees. Whose value is subject to change when repatriating money, this may result in losses.
• Investment options: Non-residential external accounts offer limited investment options including NRE fixed deposit and NRE saving accounts.
• Withdrawal restrictions: If you have an NRE bank account then you have to face some restrictions on how much and how often money can be withdrawn.
• Domestic transactions: This type of NRI account allows transactions between India and a foreign country only.
• Account closure: If you want to close an NRE account then until all the money is repatriated or the account is converted to a resident Indian account, it cannot be closed.
• Power of attorney: This bank account doesn’t give power of attorney of an NRE account to another NRI.

After learning the pros and cons of a Non-Residential External Bank account, are you interested in opening this and want to know the documents required for an NRE account? If yes then the next part of this post will be helpful for you. We will create a list of documents required for the NRE bank account.

List of Documents Required for NRE Account:

• An application form with correct details and proper signature.
• A copy of your passport, with the first and last four pages.
• A copy of a PAN card or Form 60.
• Address and residence proof. Bank statement from an account abroad, or a certificate from your employer abroad.
• Two passport-sized photographs
• An initial remittance, like DD from a foreign bank or an exchange company, or a check drawn from a foreign bank in your country of residence.

Summing it Up:

Three types of NRI bank accounts include NRO, FCNR, and NRE accounts. By going through this blog readers will get to know about NRE or we can say Non-Resident External Account. Above we mentioned what an NRE account, its benefits, limitations, and the documents required to open an NRE bank account. So are you an NRI, OCI, or PIO, and want to open this account but are facing difficulties? If yes then we strongly recommend you to hire Visament.

It is one of the best immigration service providers who help their clients in various services. Including passport, Visa, NRI, OCI, or PIO cards, Aadhar cards, PAN cards, opening an NRI account, and many more. Additionally, by choosing this organization you will also get 24*7 customer support and Inexpensive Prices.