BANK ACCOUNT STATUS
This query is : Resolved
19 May 2020
My relative after the expiry of his wife is living with his daughter in usa. He is there for 2 years and not sure when he will return to india. Should he change his bank accounts accordingly
19 May 2020
Yes, he should get the accounts converted into NRO account. FEMA says that a person should get his /her bank account converted to Non resident ordinary when he becomes a non resident.
21 May 2020
When the resident status of Indians changes to a non-resident (NRI), they have to close the existing resident saving bank account or convert them into NRO accounts. According to FEMA, continuing with the same resident status is illegal for NRIs.
As per section 13 of FEMA, 1999, the person contravening the act will be liable to pay a penalty up to 3 times the amount involved in it or Rs 2 lakh when the sum is not quantifiable. Further, a penalty of Rs 5,000 will be charged every day from the 1st day of intervention until the penalty is paid.
So, it is advised to convert the resident account to NRO account as soon as the Indian gets NRI status.
As per section 13 of FEMA, 1999, the person contravening the act will be liable to pay a penalty up to 3 times the amount involved in it or Rs 2 lakh when the sum is not quantifiable. Further, a penalty of Rs 5,000 will be charged every day from the 1st day of intervention until the penalty is paid.
So, it is advised to convert the resident account to NRO account as soon as the Indian gets NRI status.
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