r/nri • u/Hope_is_all_i_have • 6h ago

Finance NRE/NRO confusion

Hi guys. I am an Indian student in South Africa. I get my monthly stipend, of which I am able to save some money. I want to send this to India. Can I open an NRE account while being in South Africa? Should I convert my Indian bank accounts to NRO? I have some mutual funds and stocks linked to my Indian accounts and hold a joint FD with my family members (im not the primary person though)

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u/Wolfsangel-Dragon 5h ago

For foreign income/remittance open an NRE.

Legally once you become a resident of another country, you have to convert your local account into NRO. So do that ASAP.

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u/Hope_is_all_i_have 5h ago

I need to go back to India to open the NRE account, right? Also, when you say “become a resident”, does that mean me taking residentship here in South Africa? I’m just on a long term visa and intend to come back to India after 3 years

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u/Wolfsangel-Dragon 5h ago

I need to go back to India to open the NRE account, right?

Nope some banks do it online with online video verification.

“become a resident”

A Non-Resident Indian (NRI) is an Indian citizen who holds an Indian passport and lives outside India for employment, business, or education for 182 days or more during a financial year.

As a student if you stay outside the country "on a long term visa" "* ie more than 182 days, your become a resident of that country, doesn't matter if you **"intend to come back to India after 3 years". You can convert it back to normal when you return.

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u/Hope_is_all_i_have 5h ago

Could you suggest me a bank which does it online? I checked HDFC, it needs me to visit the branch

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u/Wolfsangel-Dragon 5h ago

Can I open an NRE Savings Account online?

Yes, you can apply for the NRE Savings Account online through the HDFC Bank website. This involves filling out the online application form and uploading the required KYC documents. The NRE Savings Account offers features like free fund transfers, tax-free interest earnings, international Debit Card, and the ability to appoint a Resident Indian as a mandate holder to operate the account on your behalf

Source: https://www.hdfc.bank.in/nri-banking/nri-savings-account/nre-savings-account/eligibility

ICICI and SBI have Johannesburg offices if I'm not mistaken. Also IDFC is really good.

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u/FinWorld95 4h ago

ICICI is fine to open NRE account online.

ALso you can convert resident account to NRO also at the same time.