personal-finance
Why do you need NRE and NRO accounts?
Sep 20, 06:09

As per Foreign Exchange Management Act (FEMA) rules, a Non-Resident Indian (NRI) cannot maintain a local savings account in his or her name in India. You must convert all your savings (money earned abroad) into a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account. Else, you will have to pay hefty penalties. In case you are travelling abroad for an indefinite period, you need to instruct your bank to convert your savings account to NRE/NRO account. Opening an NRE or NRO account can help NRIs in multiple ways. For instance, you can transfer your foreign earnings to India to take care of periodical expenses of dependent family members or to make investments in India.

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