How to Keep Your NRI Bank Account Active While Living Abroad

NRIs may have limited everyday transactions in India since they use their overseas back accounts for daily spends and transactions. Given that the NRE / NRO accounts are used for specific transactions in India, including investments, family maintenance, utility payments, etc., NRIs should keep tab of the activation status of their accounts. Staying active ensures smoother access, fewer compliance steps, and uninterrupted financial control when you need it most.

With the importance determined, NRIs must wonder - How? How can NRIs keep their NRI bank accounts active when they are not living in India? Are there hassle-free means of doing so? Keep reading as we elaborate!

Here’s what we’ll cover in this article:

• The difference between inactive and dormant status for NRI bank accounts
• How to activate an inactive account?
• How to activate a dormant account?
• How to maintain an active NRI bank account?

Inactive Account vs. Dormant Account: Exploring the Differences

Bank accounts are tagged inactive or dormant based on time elapsed since the last transaction, financial or non-financial. Financial transactions include fund transfer, ATM withdrawal, etc. while non-financial transactions include balance enquiry, statement download, or mobile banking login. Suppose Mr. Raj has an NRE account but doesn’t know the status. How can he figure it out?

• Inactive: If Mr. Raj has not carried out any transactions for the last one year
• Dormant: If Mr. Raj has not carried out any transactions for the last two years or more

The Bank sends timely alerts when an account is about to become inactive or dormant, so customers can take timely action.

Note: Inactive or dormant status is applied at the individual account level. An account can become inactive/dormant even if you’re actively using other accounts with the Bank.

What Happens When an Account Becomes Inactive/Dormant

Inactive Account:

No restrictions are placed on an inactive account. Both debit and credit transactions are allowed. Even non-financial actions like logging in or checking your balance are permitted.

Dormant Account:

All financial transactions are restricted if an account is marked dormant. You can log in via Net Banking or Mobile Banking but cannot carry out any financial activities from the account.

How to Keep an NRI Bank Account Active: Pro Tips

In the case your NRI bank account does become inactive or dormant, follow these steps to re-activate your account:

How to Reactivate Your Inactive NRI Account

To reactivate an inactive NRI account, simply perform any financial or non-financial transaction, such as a fund transfer, ATM withdrawal, Mobile Banking login, or balance enquiry. No additional documentation or formal request is needed at this stage. Once the transaction is completed, the account automatically returns to active status.

How to Activate Your Dormant NRI Account

If an account turns dormant, the following steps have to be followed to activate the account:

• Fill out the “Request for Dormant Account/Re-KYC Updation form ”
• Documents required (self-attested copies):
  • Latest Photograph
  • Self-attested Passport
  • Self-attested Visa or Equivalent
  • Self-attested Overseas Address Proof
• Submit the form and documents through any one of the following:
  • Email to [email protected]
  • Secure Mail via Net Banking
  • Visit a Kotak Mahindra Bank branch
  • Post courier

The account is generally activated within 24 to 48 hours, provided all documents are in order.

Note that if there are no financial transactions for two consecutive years after reactivation, the NRI account can become dormant again. To avoid this, ensure you carry out at least one debit or credit transaction each year.

Wrapping Up!

Even if you don’t need it right away, keeping your NRI account active is useful when you need to make financial transactions in India. It’s easier to maintain it with small periodic activity than to reactivate it later. Since banks mark an NRI account as inactive after one year and dormant after two years of no transactions, there’s enough flexibility built in. With digital banking making everything more accessible, managing your NRI account from anywhere in the world is simple and convenient.

FAQs

1.  Are there any transaction fees associated with an NRI savings accounts?

No, we do not charge any transaction fees on NRI savings accounts.

2.  How do I stop my NRI account from turning dormant?

To keep your NRE or NRO account active, make sure you do at least one debit or credit transactions every year, like transferring funds or withdrawing money. Just checking your balance or updating details won’t count. Also, keep the KYC updated at all times.