Top of main content

NRE account benefits for NRIs

Non-resident external accounts are designed to help NRIs manage their income earned abroad.

Many non-resident Indians (NRIs) with earnings and bank accounts both in India and overseas find it difficult to keep track of their finances. Repatriating or transferring funds between countries also poses a challenge.

Recognising this problem faced by NRIs, we offer a variety of tailor-made NRI services. One such service is the NRE account, which is specially designed to help NRIs manage their income earned abroad. 

NRE account meaning

A non-resident external (NRE) bank account allows you to deposit your overseas foreign currency income into an account in India. 

You can transfer money from:

  • The account you hold in your country of residence, or
  • Other NRE accounts you hold in India

The money you deposit is converted into Indian rupees at the prevailing foreign exchange rate. 

You can also convert the money back into foreign currency and send it to any account you hold outside India. 

Both the principal amount and the interest earned from an NRE account are freely repatriable.

Why do you need a separate account?

The Reserve Bank of India's FEMA (Foreign Exchange Management Act) guidelines state that Indian citizens who attain NRI status cannot keep a regular savings account in India.

If you have a savings account and eventually become an NRI, you must either:

  1. Close the account and open an NRI account, or
  2. Request your bank to convert your existing account into an NRE account, especially if you earn an overseas income in a foreign currency

Learn more: How to open an NRI account online

Features and benefits of an NRE account

Here's what you can expect when opening an NRE bank account in India.

Tax-free returns

The interest you get from your deposit in the NRE account is completely tax-free in India. 

Repatriation of funds

Repatriation means to move funds freely from one country back to your home country. With an NRE account, you can repatriate both the principal amount and the interest earned. This is useful if you frequently need to transfer funds back and forth between India and your country of residence.

Worldwide access

If you have an NRE account with us, you can access the account from anywhere in the world and round the clock. You can also check the account balance and keep track of the transactions anytime you want. 

Access other banking services online

An NRE account allows you to easily access other services in just a few steps. With it, you can:

  • Pay bills on behalf of family members in India
  • Request a new cheque book
  • Stop payment
  • Request to open a new fixed deposit
  • Get an e-statement of the account

International debit card

When you open an NRE account with HSBC, you get access to HSBC Group ATMs and other ATMs affiliated with the Visa network. You can also easily withdraw cash or make online payments. 

Nomination facility

We recommend that you appoint a nominee to your account. If something were to happen to you, your nominee would get the funds in your account. 

You can appoint a nominee to your account online through internet banking, or you can submit a request form at the nearest HSBC Bank branch.

Personal assistance

We can help you with your NRE bank account or other services offered by us. These include home loans or opening a term deposit account.

Need help?

Visit our contact page to speak to us over the phone or visit your nearest HSBC branch.

Contact us

Apply for an NRE Account

Keep your foreign currency earnings at home, with a savings and current account denominated in rupees and held in India.

Frequently asked questions

What's the difference between an NRE account and NRO account?

An NRE account is better if you want to deposit your overseas earnings and convert them to Indian rupees. This account can be funded with overseas remittances or transfers from other NRE accounts held in India. Money from this account is fully repatriable.

A non-resident ordinary (NRO) account is also a rupee account. However, you can deposit both foreign income and income earned in India. Interest earned from this account is taxable in India and repatriation of funds is restricted.

Can I hold NRE and NRO accounts at the same time?

Yes, it's possible to hold both accounts.

What are the eligibility requirements?

To hold an HSBC NRE account in India, you must be a non-resident Indian or a person of Indian origin. 

What are the benefits of an NRE account in India?

With a non-resident external bank account, you can:

  • Earn tax-free interest on your deposits

  • Access your account from anywhere in the world

  • Withdraw cash and shop worldwide with your international debit card 

  • Send and receive money between banks to any bank in India, and overseas (may be subject to fees)

Can I open a joint NRE account? 

Yes, you may hold the account jointly with 2 or more resident Indians, NRIs or PIOs who are close relatives.

What will I need to open an NRE account? 

When applying for an account, you'll be asked to provide:

  • A valid passport

  • Proof of address

  • Proof of Indian origin or overseas visa

  • Details of all applicants, if opening a joint account

There may be other requirements, depending on the account you wish to open. 

Back to top  

Learn more about

You might also be interested in 

Explore NRI account features and see how you can open your account online.
First-time investor or simply confused about investing? Learn more about the top options available to you in India. 
Do you prefer more certainty in terms of investment returns? NRI deposits might be what you're looking for.

Disclaimer

This publication has been issued by The Hongkong and Shanghai Banking Corporation Limited (HSBC), India, Incorporated in Hong Kong SAR with limited liability, for the information of its customers only. This publication does not constitute tax or investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe to any product / investment. The information herein is derived from sources believed to be reliable and the concerned Information Provider(s) have duly authorised HSBC to use such information provided by them. Whilst every care has been taken in compiling the information, HSBC and the concerned Information Provider(s) do not guarantee, or make any representation or warranty and accept no responsibility or liability as to its accuracy or completeness and shall not be liable for damages arising out of any person's reliance upon this information or any action taken or not taken as a result of any material contained in the publication. All information is subject to the relevant Act, Rules, Regulations, Policy Statements, etc., of the Income Tax Department and subject to change. Expressions of opinion are those of HSBC and the Information Provider(s) only and are subject to change without notice. HSBC has not independently verified any information provided by the Information Provider(s) or that has been derived from the sources believed to be reliable by HSBC. Opinions expressed herein do not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this publication. This document is for circulation in India only. No part of this publication may be reproduced or stored in a retrieval system without the prior written permission of HSBC. Any liability is accordingly expressly disclaimed by HSBC, its officers, directors and employees.