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Simply Save podcast | How NRIs should work their financial plan when they return to India

NRIs returning back to India don’t just come back because they’ve lost their jobs. There could many other reason for the pull, such as ageing parents, a retired life back in India or a better career opportunity back home. Such NRIs must plan their finances

February 17, 2021 / 06:21 PM IST


In our last week’s Simply Save podcast, we spoke to financial planner Kalpesh Ashar on how non-resident Indians (NRI) should plan to come back if they’ve lost their jobs abroad due to Covid-19 pandemic. But that is not the only reason why an NRI might want to back to India. There could NRIs don’t just come back to India if they’ve lost their jobs. There could be many other reasons; they would want to retire in India because of cheaper living expenses here as opposed to some foreign countries. Or better work opportunities might beckon them back. Or- like in many cases- they have to take care of their aging parents back in India. Or it could just be that some people might find it tough to adjust in foreign land or their careers may have stagnated and they want to come back home on familiar ground.


But coming back to India is not as easy as booking a flight ticket and boarding the next available flight. You’ve got to move your money and at the same time build a sound financial base here in India. How do you do that?


In today’s podcast, Kalpesh Ashar joins us again and takes us through how an NRI should transfer his and his entire family’s financial and personal lives back to India. To begin with, the NRI needs to sort out the documentation. For instance, while in many cases, the NRI may have a Permanent Account Number (PAN), he would not have a Aadhaar card because Aadhaar is only meant for Indian citizens. So, upon arriving in India and eventually turning himself into a resident, he would need to apply for Aadhaar.


But Kalpesh says that the groundwork to shift to India, in terms of finances, must begin around 3-6 months before he actually boards the flight back home. Take the family into confidence and make sure everyone has agreed whole-heartedly to move back. Parents might be more willing, but grown-up kids might it difficult to adjust since many children would have been born abroad after their parents migrated. Appropriate bank accounts which were open here, such as Foreign Currency Non-Resident Account (FCNR), Non-Resident Ordinary (NRO) account and Non-resident External Account (NRE) accounts would have be converted to normal bank accounts.


The most important thing, Kalpesh reminds us, is to have an adequate insurance cover for NRIs coming back to India. And an emergency corpus to take care for the first one year while it might take time to find a suitable job.

Tune in to the Simply Save podcast for more.
Moneycontrol News
first published: Feb 17, 2021 06:21 pm

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