Q.864 NRI Bank Accounts status

when they return to India . . .

Question: Dear Sir, Presently, I am an NRI working in UAE and having following savings account: 1. Savings account in Dirhams Currency in UAE. 2. NRE A/c in INR in India I am likely to return to India very soon and accordingly, I shall become Resident Indian. Subsequently, I need some amount of USD dollar to meet the educational requirements of children who are studying in India under NRI quota. Fees of my children has to be paid in India in US$ currency. Kindly advise about my following query: 1. Can I continue to maintain Savings account in Dirhams Currency in UAE. 2. Can I open or convert my existing NRE A/c to some US$ account (RFC) A/c. Kindly advise me suitably so that in future, I can pay the educational fees in India in US$. Regards B Jaggi [March 9, 2016] Answer: Yes!. NRIs returning to India for permanent settlement can continue to hold assets abroad. They can also hold foreign currency accounts in India. [As per FEMA rule, a resident in India is free to hold, own, transfer or invest in assets situated outside India. However, those assets must have been acquired or owned when they were a resident outside India or inherited from a person who was resident outside India] More information on this topic is given in an article titled: Status of NRI bank accounts when they return to India - After NRI returns to India what happens to their NRI bank accounts? >>