NRI Account Minimum Balance

While these accounts offer various benefits, understanding the minimum balance requirements across banks is crucial to ensure your account remains in good standing. This guide simplifies the NRI account minimum balance policies of major Indian banks, helping you make informed decisions about your banking options.

Who is a Non-Resident Indian (NRI)?

An Indian citizen who lives outside of India for reasons such as employment, business, or other extended stays overseas is known as a non-resident Indian (NRI). An individual is considered an NRI if they have lived outside India for over 182 days but less than 365 days in the last four years.

Key points:

• NRIs are eligible for specific banking, investment, and tax benefits in India
• They manage finances in both India and their country of residence
• If you've stayed abroad for more than 182 days and fewer than 365 days in the last four years, you qualify as an NRI
• Common reasons for staying overseas include employment, business, or education, while still maintaining Indian citizenship
• If you move abroad for work, you are automatically classified as an NRI

As per the Income Tax Act, 1961, NRIs are subject to FEMA regulations for financial transactions in India.

Why Do You Need an NRI Account?

As an NRI, your earnings and assets may be in foreign currencies such as AED, USD, EUR, or JPY. Indian law requires you to open an NRI account to hold and convert foreign income into Indian Rupees (INR). These accounts also allow you to meet financial obligations and pursue investment opportunities in India.

Types of NRI Accounts

Once your NRI status is confirmed, you can choose from three main types of accounts. Here’s a detailed breakdown of each —

1. NRE (Non-Resident External) Account

An NRE (Non-Resident External) account is designed for managing income earned outside India. When you deposit foreign currency into this account, it is converted into Indian Rupees (INR). This makes it convenient for NRIs to transfer and hold funds in India.

2. NRO (Non-Resident Ordinary) Account

An NRO (Non-Resident Ordinary) account is primarily used to manage income earned in the country itself (India). Unlike the NRE account, the funds in an NRO account are sourced from India and held in Indian Rupees (INR).

3. FCNR (B) (Foreign Currency Non-Resident) Account

The FCNR (B) account is a term deposit option where the balance is held in foreign currency (e.g., USD, GBP, JPY) rather than INR. It protects against currency fluctuations and is ideal for NRIs who wish to invest in foreign currency while maintaining liquidity.

NRI Account Minimum Balance 

The minimum balance requirements vary across different banks in India. Each bank has specific rules based on the type of NRI account. 

We have outlined the table below which outlines the NRI account minimum balance expectations for some of the leading banks  —

1. Kotak Bank NRI Account Minimum Balance

2. Minimum Balance for SBI NRO

3. HDFC Bank NRI Account Minimum Balance

4. ICICI Bank NRI Account Minimum Balance 

5. Bank of Baroda NRI Account Minimum Balance

* INR to AED rates are subject to change.

Note: Minimum balance requirements may vary based on location and type of service (savings or term deposit). Always verify with the bank for the most up-to-date information.

NRI Account Eligibility Criteria

The eligibility criteria for opening an NRI account may vary slightly, generally depending on individual bank policies, but there are common requirements followed by all financial institutions in India. 

Below are the key criteria —

Documents Required

To open an NRI account, the following documents are generally required —

Note: The required documents or criteria may differ from bank to bank.

How to Open an NRI Account in India?

With just a few simple steps, you can easily open your NRI account. Here’s a guide to help you navigate the process —

1. Face-to-Face Account Opening

You can visit your nearest bank branch in India to open your NRE/NRO account and they will guide you through the process.

Required Steps:

• Visit a bank branch near you
• Carry all original KYC documents for verification
• Complete the account opening formalities with the bank representative

2. Non-Face-to-Face Account Opening

If you prefer not to visit the branch in person, you can open your NRI account remotely. Here’s how —

Visit the Bank Website:

• Complete the online NRE/NRO account opening application form 
• You will be contacted by a bank representative to assist you further
• Self-attest all supporting KYC documents 

Important Notes:

• For non-face-to-face applications, ensure that your documents are self-attested
• Additional documents may be required depending on your specific situation (e.g., salary account for NRI employees, student accounts, etc.)

Frequently Asked Questions