Regarding Savings Bank Account of NRI conversion into NRO account
This query is : Resolved
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12 June 2025
Respected Colleagues,
if a person moves to abroad and for above 182 days being a NRI as per IT act, then all the savings accounts in India is mandatorily convert into NRO account? if person not able to do so, then consequences? #
if a person moves to abroad and for above 182 days being a NRI as per IT act, then all the savings accounts in India is mandatorily convert into NRO account? if person not able to do so, then consequences? #
12 June 2025
Yes. NRIs should promptly convert their resident savings accounts to NRO accounts to avoid legal, financial, and tax-related complications. Under the Foreign Exchange Management Act (FEMA), it is illegal for NRIs to continue operating a resident savings account. If you fail to convert your account, you may be subject to the following penalties:
A fine of up to three times the amount in your savings account, or ₹2 lakh if the amount is not quantifiable.
Additionally, a penalty of ₹5,000 per day from the first day of non-compliance until you pay the penalty or convert the account. (Practically, rarely charged.)
Banks may also freeze your account, and you could face further legal or tax complications. It is therefore essential to convert your resident savings account to an NRO account as soon as your residency status changes to NRI.
A fine of up to three times the amount in your savings account, or ₹2 lakh if the amount is not quantifiable.
Additionally, a penalty of ₹5,000 per day from the first day of non-compliance until you pay the penalty or convert the account. (Practically, rarely charged.)
Banks may also freeze your account, and you could face further legal or tax complications. It is therefore essential to convert your resident savings account to an NRO account as soon as your residency status changes to NRI.
12 June 2025
Ok sir thank you so much for your valuable feedback
12 June 2025
You are welcome.
27 September 2025
Good luck..
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