There are various options wherein an NRI can transfer funds. But when it comes to maintain the NRI account, one has an option to choose between the NRO and the NRE account. Out of these two option the NRE account is a better choice as there is less trouble in maintaining a rupee account in India. Additionally, the Foreign Exchange Management Act (FEMA) does not specify any limitations or restrictions on most remittances sent to India by NRIs. This makes it easier for any NRI to send any amount of money to India.
Let us learn more about this account to know you as an NRI can take advantage of it:
What is a NRE Account?
The NRE account is a savings account that can be opened by any NRI. You can use it to repatriate funds or income that come from any outside source. Through this account, you can easily transfer your earnings to your home country conveniently with complete security. As any foreign currency that is transferred through this account is converted into the INR in it makes it easier for any fund transfer. In addition to this, one can hold foreign currency earning in INR in this account. You can also repatriate all funds in this account, even the interest that earned turning the tenure.
How does investing in ab NRE Account be helpful?
As an NRI, sending money to a NRE account may be financially beneficial to you for several reasons. You can:
* Allows you to freely transfer funds any amount of funds to and from India
* Completely control your income from abroad
* Provides multi- city check books, thus allowing you to make payments with checks in multiple locations
* Includes a power of attorney clause wherein you can authorize your relative or friend to operate your bank account on your behalf. You can even hold your savings account jointly with another NRI or Resident Indian
* Allows anytime access through internet facilities.
* Allows you to withdraw cash easily.
* It allows you to transfer funds from your existing NRE Savings Accounts to an open NRO/FCNR accounts.
Why Should One Open a NRE Account?
If you are a NRI and want to send money to India, it is best to open a NRE account in India for several beneficial reasons. Some of them include:
* Freely transfer funds to India
* Transfer funds from the NRE account and back to your foreign account
* It is not taxable.
* It requires a minimum balance of Rs. 10,000
* This account can be easily converted into a regular account on change of NRI status.
Now that you know the benefits of this account, you can easily open this NRI account when you travel abroad.
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