Returning OCI - NRE Bank account, what happens?


#1 Aug 10th, 2017, 06:23
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  • lovetotravel123 is offline
#1
I am an NRI returning to India. I have a non Indian passport and an OCI. A few years ago I opened NRE and NRO accounts with the State Bank. Also some NRE fixed deposits which mature on different dates through the year.

Could anybody tell me what happens to these accounts when I return and become a resident Indian. Does the bank close them? Can I open a local resident account?

I would be most grateful for any information as emails sent to the bank enquiring about this have not been answered, and the bank website while full of information about changing status from resident to non resident has little information on what happens when you become a resident.

Thank you for any input on this matter.
#2 Aug 10th, 2017, 07:38
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  • capt_mahajan is offline
#2
Quote:
Does the bank close them? Can I open a local resident account?
Short answers- Yes, if you inform the bank that you are now a resident, and yes, of course. If I remember right, I even converted one NRE account to a resident savings bank account, but this was a long time ago.

I do not know what happens to NRE FDs once you become resident- whether they have to be prematurely encashed or not. I somehow doubt that is required. Fact is that the bank only knows your resident status has changed if you tell them.

With SBI and such, the only way to get reliable information is to go (or have somebody go to) the bank branch where you have your accounts. But I woudn't worry too much about this, as you can do this after you return.
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#3 Aug 10th, 2017, 15:12
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  • ViShVa is offline
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Originally Posted by lovetotravel123 View Post I am an NRI returning to India. I have a non Indian passport and an OCI. ...
I am surprised that your bank has not allocated you a dedicated customer relationship manager (CRM) dedicated to selling you all kinds of junk you don't need. The CRM would have told you what you would need to do.

Once you have been resident for 182 days, you qualify as an Indian resident and you are obliged to inform your bank of this. They'd then convert the accounts to 'resident' ones.

Also, for greater clarity and accuracy for the sake of future readers, you are not a NRI. You are a foreigner in India and are classed as a person of Indian origin for legal shoo-shaa like this.
#4 Aug 10th, 2017, 19:43
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#4
Thanks Captain and VishVa. Most kind of you to take the time to reply. I am thinking of changing banks. If you or other readers have had any good experiences with specific Indian banks do let me know. I have my accounts at SBI which I must say was very good at the beginning but now seems chaotic. The CRM I have - very polite and doing his best - has at all times some four clients sitting before him with different issues and is resolving all at the same time. I think its time to move to another bank.
#5 Aug 10th, 2017, 20:06
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There is no bank that will kowtow and serve you hand and foot unless you have many trailing zeros in your account. Private banks try and sell you all kinds of useless stuff unless you are really firm with them. SBI has pretty good coverage throughout India.
#6 Aug 10th, 2017, 21:56
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#6
Am in India early next month. If I come across any useful information re non resident to resident status of bank accounts that might be of benefit to forum members will share it here. Meanwhile thanks and - cheers!
#7 Sep 3rd, 2017, 08:29
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#7
Have been in India for ten days and have clarification on many issues. Capt. M was right. At the bank, direct talks - thats the way to go. Here is some information. Once you declare change of residence to the bank you have six months to regularize your accounts. NRE accounts will be closed. NRO accounts will be converted to local accounts. FDs can be held until maturity and then closed. Without PAN and Aadhaar you cannot open a local resident account. This was the information I was given. Sharing it as it might be of some use to forum readers
#8 Sep 3rd, 2017, 12:54
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#8
Quote:
Originally Posted by lovetotravel123 View Post Have been in India for ten days and have clarification on many issues. Capt. M was right. At the bank, direct talks - thats the way to go. Here is some information. Once you declare change of residence to the bank you have six months to regularize your accounts. NRE accounts will be closed. NRO accounts will be converted to local accounts. FDs can be held until maturity and then closed. Without PAN and Aadhaar you cannot open a local resident account. This was the information I was given. Sharing it as it might be of some use to forum readers
Thanks for the update!

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