362. Having resident and non

resident bank accounts is illegal

Q: Dear VK Chand, Thanks for clarifying the NRI information through NRI Information website. I have one question from my resident demat bank account perspective. I have resident savings account in India and it is linked to Demat, Mutual funds, home loan and some direct debits. Also have NRO account with the same bank with different branch. Recently I have received an email requesting from the bank reasons for maintaining two accounts under different categories. Please close or covert based on your genuine situation with self attested documents. As a NRI I have to keep NRO account, if I can close my resident savings can my demat shares/mutual fuunds will be transferred to NRI demat/ISA or I need to sell off. Can I use my NRO account to pay my mortagage in india and how it will impact on ULIP & LIC policies. Advance thanks for your clarification. Regards Venkat Reddy A. Non Residents are not allowed to maintain resident accounts. Having both, resident and non- resident bank accounts at the same time is illegal. You need not sell off your shares etc. If you are a non-resident, then you have no alternative but to close your resident bank accounts and link your investment accounts to your NRO or NRE account depending on repatriability f your investments.