A non-resident can open a bank account in India. The Reserve Bank of India (RBI) has specified accounts that non-residents may open and maintain in India. These include:
- Non-Resident (External) Rupee Account Scheme (NRE Account): This is one of the most popular bank accounts with NRIs. NRIs may open this account with a bank, who is of Indian origin, i.e., Persons of Indian Origin (PIO). It may be a saving, current, fixed, or recurring deposit account. Transfers within NRE Accounts of self or others are also permitted.
- Foreign Currency (Non-resident) Account (Banks) Scheme (FCNR (B) Account): The account can be held only as a fixed deposit in freely convertible foreign currency. Other conditions such as credits/debits, joint accounts, as applicable to an NRE Account apply to FCNR(B) Account as well.
- Non-Resident Ordinary Rupee Account Scheme (NRO Account): Non-residents may open this account for carrying out bona fide rupee transactions. Foreign nationals coming to India for employment or as a tourist may open an NRO Account. They may open the account with funds remitted from outside India or by the sale of foreign exchange brought into India.
- Special Non-resident Rupee Account (SNRR Account): A non-resident having a business interest in India may open a SNRR Account for making bona fide transactions in rupees. An SNRR account is non-interest bearing and may be operated for 7 years. Funds in SNRR Account are fully repatriable.