Banking in India · 2026-10-14

How to Open an Indian Bank Account: NRO, NRE and Non-Resident

How foreigners and NRIs open accounts in India: NRO/NRE accounts at SBI, HDFC, and Kotak, with documents and remittance notes.

1. The short answer: know NRO vs NRE

Foreigners and Non-Resident Indians (NRIs) open two main non-resident accounts in India: NRE (foreign income, tax-free, freely repatriable) and NRO (India-sourced income, interest taxed). Traditional majors State Bank of India, HDFC Bank, and Kotak 811 offer both, mostly with overseas online pre-opening.

2. NRE vs NRO

An NRE account is funded in foreign currency, held in rupees; principal and interest are freely repatriable and foreign income is tax-free. An NRO receives India-sourced rent, salary, etc., with ~30% interest TDS and repatriation controls. Rule of thumb: overseas earnings go to NRE, India income to NRO.

3. Documents and process

Non-residents typically need: passport, valid visa/OCI card, overseas proof of address, a PAN tax number (or Form 60 waiver), and a passport photo. Kotak 811’s Kotak 811 opens NRE/NRO remotely in-app; HDFC Bank and State Bank of India support overseas branch or representative-assisted verification.

4. Remittance and forex

India requires repatriation declarations; NRE funds move freely, while NRO outflows have annual caps and need a CA certificate. For large transfers use bank wire or forex channels like HDFC Bank, watching the TCS (overseas-remittance TDS) threshold.

5. Tax and compliance

India taxes residents worldwide but exempts foreign income in NRE accounts. Declare RNOR status and income sources truthfully to avoid freezes. Short-stay foreigners usually skip NRI accounts, using forex cards or traveler’s cheques instead.

FAQ

Must NRIs open both NRE and NRO?

Not necessarily. NRE for foreign income, NRO for India income; open both only if you have both. Kotak 811’s 811 opens remotely.

Is NRE interest taxed?

No. NRE principal and interest are tax-free and freely repatriable.

Can short-term tourists open accounts in India?

Generally no NRI accounts; for short stays use forex cards or international credit cards.

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