Money is an asset for all individuals living in India as well as overseas. It helps them meet all kinds of luxuries, essentials and emergencies, which include medical and financial conditions. It is a saviour for all those stuck in monetary problems and unable to repay debts to people. No matter where an individual resides, it is important to have sufficient funds in the bank account to meet daily requirements and pay for products and services.
Many people send money home to India, but several NRIs have faced problems in maintaining a Rupee account in India. Opening an NRE account in India provides a good option for overcoming these problems. The Foreign Exchange Management Act does not specify any limits or restrictions on most remittances sent to India by NRIs, making it easy for them to send any amount of money to India.
It is a savings account that can be opened by an NRI to repatriate funds that would come from outside earnings. This account lets them transfer their earnings to India conveniently with complete security. Money transferred to this account in any foreign currency is converted to INR and permits NRIs to hold and maintain foreign currency earnings in INR. It allows them to repatriate all funds, including interest earned at any point of time.
How does sending money to that account help an NRI?
Many people need to understand what is NRE account and how it can benefit them. Whenever they or their families need money, they can deposit and withdraw at their convenience. Here are a few ways how sending money to an NRI with this account can benefit:
- Individuals can send as much amount as they want to India
- They can stay in complete control of their hard-earned income abroad
- They can transfer funds freely to and from India
- It provides a ‘Multicity’ chequebook, which allows account holders to make payments with checks at multiple locations
- It has a ‘Mandate’ or Letter of Authority facility so that individuals can authorize their relative or friend to operate the bank account on their behalf
- It offers 24/7 account access through a secure Internet banking facility from anywhere at anytime
- It has an online shopping and utility bill payment facility through Internet Banking
- There are no restrictions for transferring the money from the NRE account back to the foreign account. Individuals can also withdraw cash easily.
- They can transfer funds from their existing NRE Savings Accounts to open NRO/FCNR accounts. They can also hold it jointly with another NRI or Resident Indian with a nominee.