Step by step guide to convert a Resident Account to an NRI Account

Moving abroad? You will need to convert your resident account into an NRO account to continue being able to manage your finances in India. This article presents a step-by-step guide on how you can convert your resident account into an NRO account and the list of documents required in the process.

We will talk about:

• Why it is crucial to convert your resident account to an NRO account
• How to convert the account
• List of required documents

Why convert Resident Account to an NRO account?

The Foreign Exchange Management Act (FEMA) prohibits NRIs and PIOs/OCIs from holding resident accounts. It makes it compulsory for an NRI to either close all their resident savings and/or current accounts or convert them to an NRO account. Learn how to manage money as an NRI by clicking here

How to Convert a Resident Account to an NRI Account?

• Digitally: Send the scanned copies of the form and self-attested documents (as mentioned below) through Secure Mail on your Net banking application or through your registered email ID to [email protected].

Required Documents for conversion and opening new add on account:

The following are the forms/documents you will have to give physically or through scanned copies:

• Change of Status - Resident to Non-Resident Declaration cum Add on account opening form
• New Customer Relationship Form for Non-Residents.
• KYC documents for Non-Resident customers as per the Bank policy (should be self-attested)
• Copy of General Schedule of Fees & Charges, signed by all holders in the account as an acknowledgement that you were made aware of the new service charges as applicable for the new account
• Separate Annexure form for Demat or Investment Account

Points to note:

• You can also open a new NRE account while converting your resident account to an NRO account. All you need to do is opt for a new NRE account in the Change of Status - Resident to Non-Resident Declaration cum Add on account opening form
• Your account number will remain the same post conversion to an NRO account
• You will have to surrender your check book at the time of conversion
• You can continue using your net and mobile banking applications as before
• You will be issued a Rupay Debit card for your converted NRO account. This card will be for usage in India only
• Debit cards issued for NRE accounts can be used globally.

Mistakes to Avoid During Conversion

Care should be taken to avoid these common pitfalls to ensure that the entire process is smooth, timely, and hassle-free:

Submitting Incomplete Documentation

The most common problem is incomplete or missing documentation. Be sure you know what the bank requires and have all documents needed, such as NRI status proof and recent ID/address proof, available for submission. Confirm with your RM in case of any doubts.

Submitting Inaccurate Information

Review all information, including your name, current residence, and destination country. Additionally, give your recent email address and phone number to enable the bank to contact you throughout the procedure.

Disclose all your existing accounts and investments

To prevent any delays and/or issues in the future, disclose all your existing accounts and investments with the bank at the time of status conversion. Understand which investments and accounts you will be able to continue, and which will not be allowed as an NRI

Kotak Mahindra Bank offers an array of NRI banking solutions, including savings accounts, current accounts, and deposits.

This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Mutual Fund investments are subject to market risks read all scheme related documents carefully before investing