250. NRIs holding resident bank

accounts in India

Q: Dear Mr. V.K. Chand, I got your reference from web site http://www.nriinformation.com/questions_index.htm. I am former Officer of defense forces. My spouse and I are currently planning to take US nationality after nearly 20 years after my retirement from service. I will also apply for OCI card. I have two questions which you may please clarify. (a) Self and my wife have some bank accounts with scheduled banks in India as Indian Nationals . On taking the US nationality can I continue to operate them as what they are? Is it necessary for me to convert them to NRI accounts. If so after conversion can I deposit my indian income and also make with drawals from those accounts as at present. (b) I also receive pension and have a pension account with a scheduled bank. Is it necessary that I change it over to NRI account. You are doing great service by providing these answers. You may publish these questions and your answers on your site if you think they are of use to others. regards Viswanath A. It would be illegal to continue to hold normal resident bank accounts in India. You should inform your banks in India about your NRI status and request that they re-designate your accounts as NRO. You should still be able to use your accounts once they are designated in the same way as you used them before. Your pension should also be deposited in your NRO account. This would be beneficial to you as RBI allows pension income to be repatriated abroad once it is deposited in an NRO account.