Best Banks for NRIs

    Non Resident Indians have traditionally struggled with the issues of remittance in the Indian mainland. Not anymore though! With almost all of the major banks of the country doing their best to attract NRIs, they are now spoilt for choice. NRIs can now open 2 types of accounts. These are NRE accounts and NRO accounts. The NRO accounts help is making payments locally and funds can be remitted from India or overseas. NRE account is the account which does not attract any tax for both NRE savings account as well as NRE Fixed Deposit account. On the other hand, in case of NRO, TDS is deducted on the funds in the account. The first and foremost thing to keep in mind whilst opening an NRE account is the presence of the bank branch in the city of residence. The next thing to keep in mind is the interest rates for both the savings NRE accounts as well as NRE Fixed Deposits. We have gone ahead and picked the best banks in India for the Non-Resident Indians.

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    8Citi Bank

    Citibank is the consumer baking vertical of the financial services behemoth that Citigroup is. Citibank was incorporated way back in 1812 as the City Bank of New York and was later christened as the First National City Bank of New York.  Citibank boasts of presence in 19 countries and has more than 2700 branches across the world. The bank has more branches in Mexico than it has in the United States of America. It has 723 branches in the United States while it has more than 1400 branches in Mexico. Despite the fact, the United States of America accounts for 70% of Citibank’s revenue with Mexico getting 13% of it.

    A huge majority of Citibank’s branches in the United States of America are scattered in six major areas which are New York City, Chicago, Los Angeles, San Francisco, Washington D.C and Miami. The next most important markets for Citibank are Poland, Russia, India, Pakistan and the United Arab Emirates. Citibank was established in India with its first branch in Calcutta in 1902. Currently, Citigroup, the parent company of Citibank is the largest foreign direct investor in India with a total capital of more than the US $4 billion. Citibank operates 35 full-fledged branches in 19 cities and more than 500 ATMs across the country. It also employs ore than 12,000 employees in India. Citi offers consumers and institutions a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management.

    Citibank is quite a handy option for Non-Resident Indians due to its sheer presence in most of the developed nations especially through USA, Canada, Europe and Australia. With Citibank spreading its wings through the Indian mainland, the NRIs are no longer hard plussed to find a bank which has a decent network in India as well as their current country of residence. The initial balance to open an NRE account at Citibank is the US $5000 for NRIs living in USA and Canada. It would vary for people residing in other countries. On opening the account, the Citi platinum debit card is furnished to all the account holders free of charge. An interest of 3.5% is accrued on a daily basis on the funds in the NRE account but is paid out only half yearly in March and September. The interest income does not attract any tax implication in India. However, the same would depend on the tax norms in the current country of residence.

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    15 COMMENTS

    1. CITI Bank is not permitted to credit Indian rupees locally into NRO accounts. One of my friend wanted to credit Indian Rupees online from his account into my son’s NRO account. He told me that option was not available in CITI bank. Then I told him to credit into my account which is an ordinary SB account. SBI allows credits from ordinary SB account into NRO account. Why the difference?

    2. There is also a crazy bank like Yes Bank they allow only NRE linked credit card payments of dues. While credit card payment are possible from any account within or outside India , including cash . In short Bank in India do not follow Normal RBI recommendation with ignorance or with intention.

    3. Thx for the article. Kindly advise on how an NRI can transfer funds abroad from an NRO Acct? I refer to the practical problem of obtaining a certificate from a CA while living abroad.
      If TDS is applied to an NRO acct, why this additional requirement for the CA certificate?

    4. I have been dealing with The Bank of India, a nasnalized bank, for over 20 years. I have a NRO ACCOUNT IN Delhi and found their service very primitive to say the least. Every time I send them a letter or my passbook for update, the their response take 3-5 months after many reminders. I have been now advised by other NRI friends to transfer my account to a foreign bank that are more efficient and customer friendly. Finally, I complained to their head office. and I have not heard anything from them for over 6 weeks.

    5. TO ALL OF U THERE… CITI.. HSBC..STAN CHART..ARE WELL CONTROLLED FOREIGN BANKS IN MALAYSIA N SINGAPORE…SO REALLY IT’S UR SICKENING COUNTRYS BANKING LAWS THAT GIVES U GUYS D HEADACHE…
      FOREIGN BANKS IF REGULATED IN ANY COUNTRY CAN WORK VERY WELL N BENIFICIAL GLOBALLY FOR D TRAVELLER…

    6. There is no best bank for NRI. All banks respect NRI customers and give their best possible service. Go to the bank near your residence any bank, HDFC, ICICI, YES BANK, CANARA BANK, SBI, AXIS BANK ………..

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