How an NRI Account Makes It Easier to Support Family from Abroad

Hindustan Times

a day ago

Most Non-Resident Indians working abroad feel the need to have a convenient way to manage their finances and send money to their family in the home country. This is when NRI accounts prove to be useful.
In this article, we'll cover in depth about NRI account types, features to look out for and how you can apply for one.
Broadly, there are three NRI accounts you can choose from basis your needs. Here is a brief overview of different types of NRI accounts.
As an NRI, you can opt for all three types of account while residing abroad, this will not only help in managing your personal finances but also any investments you plan to do.
Here are a few use cases where an NRI account becomes essential for both NRI and their families back home:
1. Daily Expenses
Sending money to home country is one of the most common uses of NRI accounts. This helps in covering groceries, utilities, any bills that are due and other household needs. Family members living in the home country can also withdraw cash for any purchases.
NRIs can also send their best wishes through gifting money for birthdays, weddings or festivals. The money gifted is exempt from tax if it is sent to defined relatives through international bank transfers or from their NRI accounts.
For any unforeseen circumstances, NRIs often require sending money quickly, where an NRI account that offers same-day transfers can be really helpful. This is also essential for them to cover urgent or uncertain medical expenses for family members.
4. Investments: NRIs looking to invest in financial assets such as property, mutual funds or other assets in their home country can invest through NRI accounts, making it easy to manage wealth while staying abroad.
When living abroad, checking digital features of an NRI savings account adds convenience and reduces everyday challenges. Here are some significant features you should look for:
Before opening an NRI account, make sure you have the documents needed to complete the bank's Know Your Customer (KYC) process smoothly. Here's a quick checklist:
Some banks might also require documents such as FATCA/CRS declaration for tax compliance, income proof or tax return and cancelled cheque of your bank account.
When it comes to taxes on NRI accounts, it is important to know that it is only applied for income earned in India. While the NRO interest is taxable, the NRE/FCNR interest is not. The income tax exemption for non-resident Indians (NRIs) under the new income tax regime in 2025 is INR 3 lakhs. The following are subject to NRI income tax:
When you're living abroad, an NRI savings account such as an NRO or NRE account helps you support your family in India. Choosing the right one makes remittances simple and efficient. It also ensures your earnings are managed in a compliant and convenient way. Most accounts offer digital banking features that make personal finance management seamless for NRIs.
Note to readers: This article is part of HT's paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.
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