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Person of indian origin but not a citizen of india - bank a/

Somasekharan C (Manager (Accounts)) (26 Points)

10 December 2016

Dear Sir

I wish to know about the RBI guidlines for savings bank account status.

If an Indian citizen took a foreigen citizen ship. He is also holding an OCI/PIO card. Now he wish to come bank to India and permanently settle in India. He is operating an NRO savings bank account. I wish to know that after 6 months he can change his NRO savings account to an ordinary savings account. Some of the banks informed me that he can do and some others told me that he can't do.

Please let me know the rules

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 13 December 2016

As soon as the status gets changed to RNOR (depends upon your stay in India in that particular financial year), it can be changed to normal savings account.

Abhinav (CA) (397 Points)
Replied 01 February 2017

There is no such time limit of 6 months.

The regulatory requirement is this - if a person becomes a resident as per FEMA, he has to re-designate his non-resident accounts to resident accounts within a reasonable time post return. What is the meaning of "reasonable time" has not been defined in FEMA.

If your friend is returning permently, he will qualify as a resident from the day he lands in India & should get his account redesignated within 2-3 months.

Bank is wrong if it says it cannot be done. Also, some banks follow unscruplous practice of asking returning NRIs to close non--resident accounts and open fresh account (this is done to help them meet their targets)

In case issues persist, file a formal complaint to greivance redressal department on bank's website.