Q.1219 OCI in India holding NRE

bank account . . .

Question: Hi, I am an OCI now residing in India since Oct17. I have had my NRE bank account opnened while in overseas and I still have it. My citizenship still continues to be that of overseas. I do get remittances from abroad. Can I still hold NRE bank account. Please advice. Thanks for your time. Much appreciated. Warm Regards, Answer: An individual’s residency status determines whether they can hold resident or nonresident bank accounts in India. Residents of India can hold resident bank accounts whereas non-residents are required to keep nonresidents accounts. As per Indian laws, a person’s is considered a resident if: • They have been living in India for 182 days in a financial year which is April 1st to March 31st. Or • Stay in India for the immediately 4 preceding years is 365 days or more and 60 days or more in the relevant financial year Foreign nationals who are resident in India can open and maintain resident Rupee bank accounts in India. [Please note, foreign residents NOT foreign tourists such as those visiting for short durations with intention to returning abroad] OCI holder’s who have settled in India and hold resident Indian bank account do have an option of opening a Resident Foreign Currency Account [RFC] which is held in foreign currency and can be helpful to resident Indians who want to keep foreign currency in India. Pension from abroad can also be credited to RFC Savings Bank Accounts. If or when a person with an RFC account goes abroad, they can always get the funds held in RFC bank accounts transfered to a NRE bank account or repatriate the funds.