482. Nri Bank Accounts - What to

do with NRE account on return to

India

Questions: Hi, I have a question with respect to holding NRE accounts in India. I am a USA citizen holding OCI card. I had returned to India 3 years back and i am going to permanently reside in India. What should i do with my NRE account which i had opened while i was in USA? I have read in places where they say it has to be converted to regular account. Please advise. I do transfer money once a year from my bank account in USA to India. Thanks, Balaji Answer: What you have read is correct, see question number 247 ‘Can PIO living in India keep NRE account?’ Once a person resides in India permanently they are NOT considered to be non-resident Indians (NRI) and are required to notify their banks where they hold NRE/NRO accounts of the change in their residential status accounts can be designate accordingly. Since the deposits in NRE accounts represent foreign exchange deposits, you should convert your NRE account to a Resident Foreign Currency Account* (RFC). RBI allows RFC Savings Accounts to be maintained in currencies such as US$, GBP, JPY, EURO. Remember, don't simply close your NRE account until you have transferred the funds from it to your new RFC account. You can move funds into this account from USA and also send funds from India back to USA or anywhere else in the world without any restrictions. Check with your bank. *( Notification No. F.10/22/90/NRI Cell dated 17th July 1992 and Reserve Bank Notifications Nos. FERA.116, 117 and 118 /92-RB dated 7th September 1992 )