356. Designate Resident

account to NRO account

Q: Dear mr. Chand, I have recently taken up US nationality and applied for OCI. As a follow up of this migration I have asked Syndicate Bank to convert my existing pension account to NRO account. Thay seem to say it is not possible. Is it existing savings accounts cannot be converted to NRO accounts? regards Vish A. Did your bank give you a reason why this is not possible? When a resident Indian becomes non resident, the existing account in India must be designated as NRO account, this is the law. The bank once they are aware of your non- resident status, cannot allow you to have a resident savings account. Suggestions: 1. If you currently have a resident savings account, then the bank must designate it to NRO, as non-residents cannot legally hold resident accounts. You simply open a new NRO account and transfer the proceeds from your resident account to the NRO account and close the resident account. 2. If you have a NRO account and also a resident savings account, then your bank should be instructed to close your savings account and transfer the money in the account to your NRO account. However in such a situation, one would wonder why your bank allowed an individual to hold both, a resident and an NRO account at the same time? 3. Get future pension payments deposited in your NRO account. 4. Pension can also be repatriated to USA.