Is there yet a worthwhile way for a short term traveller to open Indian bank accounts

punchinello

Hi - I've just been looking into this with HSBC and Citibank, probably the most ubiquitous international banks in Asia (and, for me, Australia), but I don't seem any closer to an answer.
Is there a way to open an Indian account which is linked in a relatively simple manner to my Australian account to which I can transfer funds over the internet. Citibank Australia, for instance, has a traveller account which foreign visitors can open before they arrive for use during their travels in Australia. Citibank India doesn't seem to have an equivalent, but perhaps there are ways around this. ANZ is another bank that tends to have branches in most big cities in Asia, and would be therefore linked to domestic ATM systems. Basically, is there any way to have two accounts, one with Rupees, one with $A (or $US) as the source, to save hassles with card compatibility, international transaction fees and visa cash advance fees?
I know such a thing is surely possible, but whether the banks see it as profitable (or whether it would be waay too expensive for a pleb like me) is a different matter.
Thanks.

limaye

There are such accounts, which are fully transferrable, but I believe you have to be (even remotely) of Indian origin to open one. If you are then try searcing for "NRI" and Citibank.

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Merchant

The banks just aren't there yet. You are asking about being a retail banking customer in two different countries--and the laws and practices don't really allow this yet, unless you are a private or select client at a bank (with millions on deposit) or through some NRI scheme--whereby you are still an Indian citizen. It's counter-intuitive, It seems that if you are a CitiBank customer at home, you should be able to walk into a branch in India and have access to your account, or to set up a rupee-denominated one. But those branches really are separate and distinct--unless you are a corporation or a millionaire.

Also, the set of laws passed after 9/11 (in theory) to prevent terrorists from moving money around the world have not made the banks inclined to lobby for the type of arrangement you are seeking.

There are some workarounds. Visa has a deposit system where you can set up an account against a debit card and withdraw those funds for travel, which might be worth investgating.

Nick-H

In Kovalam (Kerala) last year I saw ads at ATMs almost begging foreigners to come and open short-term accounts. Well, at least stating that it was possible.

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limaye

You do not have to be an Indian citizen to get an NRI account. Just have to prove you have some Indian blood in you (!)
All the banners here asking people to come open short-term accounts were strictly for NRIs.

Merchant

Shouldn't they be called PIO accounts???

Nick-H

Said "Foreigners" on the notices. Not "Persons of Indian Origin" or NRI.

And Kovalam is a place teeming with foreigners,rather than PIOs or NRIs.

I think they knew who they were targeting.

limaye

That's funny b/c I know expats who tried to avail of the similar offers in Delhi and nope. And I didn't think it was legal for them to offer it to non-NRIs. But whatever, seems like everyone else flouts the law here why not the banks too!

Nick-H

....Yeah, I had the same experience in Chennai, even after I was married here. Returned later on with my X Visa and Residents Permit and the account was opened within two days (got the chequebook etc yesterday).

But the Kovalam banks may be taking a commercial view of foreigners' market and implementing (or interpreting differently) the RBI's regulations.

sirensongs

Last time I checked (summer 2005 in Pune) it was "not possible" for a furriner to open an account, no way, no how. This was with ICICI and Citibank both. They said it was against the rules of the IRB. *Unless* you have that elusive residence permit.

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bellcrank

Any tourist (oka "foreigner") of non-Indian origin or Indian origin can open an NRO (non-resident ordinary account) which is an account where your hard currency is converted to Rupees and you get a cheque book etc. I read somewhere recently that the banks were allowing reconversion to hard currency after 6 months (provided no local currency had been credited to the a/c during this period) Only NRIs or PIOs are allowed to open NRE accounts (you can convert your Rupees into other currencies and back if you wish, but you cannot pay Rupees directly to this account)

If you are a tourist or occasional traveller, it's just not worth opening an account - just use ATMs as and when.

As for transferring into India, this is a slow business and takes at least 3 working days (usually 5), even for a wire transfer. I've also found I get better exchange rates this end, rather than converting in India. Both methods qualify for FIRC (foward inward remittance certificate) for business purposes provided they credit NRE or Company accounts.

sirensongs

Thanks Bellcrank. This is so weird; both banks were really insistent that it was impossible. Now that I have the technical term for it I can pursue it a bit more confidently.

Question: so it's "possible" at least on paper for this to happen...but does anyone know a tourist who has actually opened such an account?

wonderwomanusa

As far as I know, I can get rupees in India from my US Citibank account, just by using their ATMs. Unless 'Strayan rules are dramatically different, it shouldn't be a problem to use the same ATM card.

You'll always have to deal with at least one exchange charge; there's certainly no reason to deal with two of 'em by changing your Australian dollars first to US dollars and then to rupees.

Nick-H

Should be possible to get rupees from any bank's card as long as it is compatible with one of the international standards.

But SS specifically wants a bank account.

onajourney

Bellcrank, I have had just the opposite experience in Delhi. Every bank I've entered (ICICI, HDFC, Citibank, etc.) has told me that they cannot open bank accounts for a tourist. You had to be on a long-term business Visa with a letter from your company for them to even look at you.