Q.774 OCI Opening Resident

bank accounts in India . . .

Question: Dear Sir, I am still confused between resident bank account and non-resident bank account. To be more specific, what bank account can an OCI open when he is living in India on permanent basis? Regards, Rajendra Answer: Actually citizenship does not play a part in the type of bank account that can be opened in India. To clarify: 1. Resident in India can open resident bank accounts 2. Non-residents can open NRO - NRE bank accounts If the intention of an individual is to stay in India for an uncertain period of time, then a resident bank account is allowed. OCI holders now settled in India should have resident bank accounts. Even foreigners living in India with valid visas can open and maintain resident rupee accounts. (Notification No.FEMA 5 /2000-RB dated 3rd May 2000) When a non-resident becomes a resident in India, any accounts such as fixed deposits etc. opened while they were non-resident, are allowed to continue until maturity and then should be converted to resident accounts.