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Hindustan Times
2 days ago
- Business
- Hindustan Times
How an NRI Account Makes It Easier to Support Family from Abroad
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. Want to get your story featured as above? click here!
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Business Standard
22-05-2025
- Business
- Business Standard
Inflows in NRI deposits increases nearly 10% in FY25, shows RBI data
The country's diaspora put 9.9 per cent more money in banks' non-resident Indian (NRI) accounts during 12 months of FY25 compared to a year ago. Inflows to deposit schemes for NRIs grew to $16.16 billion from $14.70 billion in FY24, according to the Reserve Bank of India (RBI). Total outstanding NRI deposits reached $164.7 billion at the end of March 2025, up from $151.9 billion the same time last year. Sequentially, outstanding deposits were at $160.33 billion in February 2025. As much as $7.1 billion flowed into FCNR (bank) accounts in FY25, compared to $6.3 billion the year before. Outstanding amount in FCNR (B) accounts stood at $ 32.8 billion at the end of March 2025, according to RBI data. A FCNR (B) account lets customers maintain a fixed deposit in India in freely convertible foreign currencies for a tenure ranging from one to five years. As the account is in foreign currency, it secures funds against currency fluctuations during the tenure of the deposit. Meanwhile, NRE deposits saw an inflow of $4.7 billion during this period (Fy25), compared to $4.2 billion in the corresponding period a year ago (Fy24). Outstanding NRE deposits stood at $100.7 billion in March 2025. NRO deposits also saw inflows of $4.4 billion in FY25, compared to $4.2 billion a year ago. The total outstanding amount in NRO deposits was $31.1 billion in March 2025. An NRO account is a rupee-denominated bank account for NRIs.
Indian Express
22-05-2025
- Business
- Indian Express
RBI sold nearly $400 billion of foreign currency in FY25, sharply higher than previous fiscal
The Reserve Bank of India sold a record $398.71 billion of foreign currency in 2024-25 on a gross basis as the Indian central bank stepped up its defence of the rupee amid a volatile global environment. The RBI's sale of foreign currency in the spot market in the last financial year was sharply higher than the $153.03 billion it had sold in 2023-24 and the previous record of $212.57 billion in 2022-23, data released late Wednesday by the central bank showed. To be sure, the RBI also bought foreign currency heavily last year, resulting in a net sale of $34.51 billion for the 12 months ended March 2025. However, this was only the seventh time in the last three decades – data for which is available – that the central bank sold more foreign currency in a year than what it bought. Further, the $34.51 sold on a net basis in 2024-25 is second only to the $34.92 billion sold in 2008-09 during the global financial crisis. Turbulent year After a fairly stable couple of years, the rupee began weakening sharply in the second half of 2024-25 as it became increasingly likely Donald Trump would return to the White House as president of the US for a second term. The RBI's interventions in the currency market peaked in December 2024 when it sold a massive $69.05 billion – the most it has ever sold in a month. All in all, the RBI sold $291.03 billion – or 73 per cent of its full-year gross sales – in the second half of 2024-25 as the panic caused by Trump's protectionist trade policies pushed the rupee to an all-time low of 87.95 per dollar in early February 2025. Falling reserves The RBI's defence of the rupee was not without its cost, with India's foreign exchange reserves slumping by around $80 billion betweeen late September 2024 and mid-January 2025 to under $625 billion. To attract more capital inflows, the then RBI governor, Shaktikanta Das, announced in December 2024 that the ceiling on interest rates banks can offer on so-called Foreign Currency Non-Resident (Bank) – or FCNR(B) – deposits was being raised by 150 basis points until March 2025. One basis point is a hundredth of a percentage point. However, data released Wednesday by the RBI showed the relaxation seems to have made very little difference, with total inflows in the aforementioned FCNR(B) deposit scheme in 2024-25 amounting to $7.08 billion compared to $6.37 billion in 2023-24.
Economic Times
20-05-2025
- Business
- Economic Times
NRI Talk: Why NRIs are exploring Vietnam, Indonesia, and Africa for tactical growth, Sreepriya NS decodes
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads In a world where geopolitical shifts and economic realignments are rewriting investment playbooks, Non-Resident Indians ( NRIs ) are no longer limiting their portfolios to traditional hotspots like India, the US, or the UK. A new trend is quietly gaining momentum — one that points to emerging markets such as Vietnam, Indonesia, select African nations, and parts of Eastern this edition of NRI Talk, we speak with Sreepriya NS, Co-founder and Director of Entrust Family Office, to understand why globally savvy NRIs are increasingly eyeing these frontier economies for tactical growth From favourable demographics and improving infrastructure to strategic diversification and early-stage investment opportunities , these regions are drawing attention for more than just their growth potential — they offer resilience, reach, and a new edge to global wealth strategies. Edited Excerpts –A) NRIs continue to view India as a compelling long-term investment destination, driven by its strong domestic consumption, demographic dividend, and a rapidly formalising are drawn not just by the potential for financial returns, but by the emotional and strategic value of investing in their country of origin — whether that's through real estate, startups, listed equities, or legacy NRIs are increasingly diversifying their portfolios across geographies. Countries like Singapore, the UAE, the US, and the UK remain attractive due to their stable financial ecosystems, regulatory ease, and access to global investment particular, Singapore and Dubai are emerging as investment hubs due to their tax efficiency, business-friendly environments, and proximity to many NRIs with family or business linkages abroad invest in local real estate and private funds, aligning these investments with their global is also a growing trend of tactical investments in emerging markets such as Vietnam, Indonesia, select African nations, and parts of Eastern Europe, offering high-growth trend reflects a balanced strategy: India continues to represent 'roots and returns', while global markets provide 'reach and resilience'.Key Statistics (as of Dec 2024):• Mutual Fund Investments by NRIs: Approx. USD 18–20 billion (~INR 1.6 lakh crore)• NRI Bank Deposits: Approx. USD 162 billion (~INR 13.7 lakh crore) across FCNR, NRE, and NRO accountsA) In case of Mutual funds, (which as per SEBI regulation, are established as a trust) the gains from sale of a unit cannot be treated the same as gains from sale of share of a under the Article 13 (5) of the DTAA with the above countries, the gains are taxable only in the country of residence of NRIs of such countries, and not in India.A) While specific data on NRI investments into REITs and fractional ownership models in India remains limited, the broader trend in real estate investment is invested approximately USD 3.1 billion (INR 26,000 crore) in Indian real estate during the first half of 2024, following a total investment of around USD 13 billion in growing interest in REITs and fractional ownership platforms reflects a shift toward more structured, accessible, and diversified real estate investment models offer NRIs the advantage of transparency, liquidity, and lower ticket sizes — making real estate participation more feasible without the operational complexities of direct not a one-size-fits-all approach, REITs and fractional investments are increasingly seen as efficient, regulated, and scalable avenues for NRIs to participate in India's real estate growth NRIs continue to hold significant real estate assets in India, despite having settled abroad for Entrust, we've supported families like one from Hyderabad, now in the U.S. for over 35 years, with managing their residential and commercial real challenge often lies with the next generation, who face the burden of inheritance, tenant management, and compliance from a bespoke family office, we help simplify this complexity—offering peace of mind and practical solutions so they can focus on their lives overseas.A) One of the biggest mistakes NRIs often make when investing in India is approaching it with the same mindset or assumptions they use in their resident countries. India is a dynamic, high-growth market — but it also comes with its own set of regulatory, taxation, and liquidity foremost important thing to consider while investing in India is to have clarity about the purpose of such investments. This determines further requirements - such as cash flows, inheritance/estate planning, repatriation etc. from such also simplifies the asset allocation decision and the selection of products/vehicles. In the absence of such clarity, one gets caught in the 'latest' trend of investment products, or the preferred options of the dealer/distributor.A few common pitfalls to avoid:1. Lack of Clarity on Objectives2. Overexposure to Real Estate3. Ignoring Tax Implications4. Using Informal Channels(Investing through family or friends without a proper legal or advisory framework can result in misaligned decisions and, in some cases, loss of control or transparency)5. One-Size-Fits-All Approach: Assuming what works for resident Indians will work for NRIs can be misleading. NRIs have access to different investment opportunities and risks, and need tailored strategies that factor in currency exposure, repatriation rules, and global asset key is to approach India with professional guidance, clear intent, and a balanced view — combining emotional connection with financial discipline.A) There is no single, uniform money mindset that defines all NRIs. Their investment approach and financial behaviour vary significantly based on their stage of life, their country of residence, their financial goals, and evolving personal some common attributes do emerge. Many NRIs display a strong preference for financial prudence, long-term wealth creation, and portfolio diversification across strategies often reflect a balance between emotional ties to India and practical considerations driven by global exposure and on their objectives—whether it's retirement planning, wealth preservation, or legacy creation—their mindset evolves in alignment with their individual context and the macroeconomic essence, while there is no monolithic mindset, there is a consistent focus on strategic, informed, and goal-oriented financial planning.A) Rather than identifying 'favorite' asset classes in a broad sense, our approach is rooted in understanding the unique needs, objectives, and risk profiles of each NRI family. Investment decisions are highly individualised and based on their life stage, financial goals, and geographic said, most NRI portfolios typically comprise a diversified mix of asset classes — including listed equities, debt instruments, mutual funds, real estate, REITs, and alternative investment avenues such as private equity or structured products. This diversification helps balance growth, income, and capital preservation we don't prescribe investments based on popularity, but offer solutions tailored to each client's financial strategy and long-term vision.A) NRIs typically do not exhibit a strong bias toward any single sector. Instead, they prefer a diversified allocation across the broader Indian approach not only aligns with prudent investment principles but also reflects confidence in India's multi-sectoral growth attractiveness as an investment destination lies in its robust and resilient economy, offering opportunities across sectors such as financial services, technology, healthcare, manufacturing, infrastructure, and consumer than chasing sector-specific trends, most NRIs seek balanced exposure that captures the overall growth momentum of the country while managing risk investors are typically sector-agnostic but prioritize market-driven strategies with a strong focus on liquidity and Entrust, we've curated bespoke strategies for NRI clients — one of which is a dividend-yield portfolio we've used over the last five equity-oriented with a defensive tilt, focused on high quality dividend paying companies to ensure stable dividends are 100% repatriable under RBI norms, making this an effective income-generating and risk-mitigating strategy in today's volatile environment.A) Luxury collectibles such as art, vintage cars, and high-end watches often form a part of an NRI's lifestyle and legacy portfolio, but preferences in this space are highly choices are typically driven by individual taste, passion, and in many cases, a desire to preserve heritage or express some, interests in art, music, or cultural artifacts are closely tied to philanthropic values or legacy planning — supporting causes, institutions, or cultural preservation initiatives. Rather than being driven purely by investment returns, these assets often reflect emotional and aesthetic considerations, making them deeply unique to each family.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Economic Times
23-04-2025
- Business
- Economic Times
NRI deposits rise over 23% in FY25 till February; FCNR(B) accounts see highest surge
Non-resident Indians (NRIs) deposited 23.3% more funds into their Indian bank accounts in the first eleven months of the financial year 2024-25, according to data released by the Reserve Bank of India (RBI). Between April 2024 and February 2025, NRI deposit inflows touched $14.55 billion, up from $11.8 billion during the same period in FY24. As of February-end, total outstanding NRI deposits stood at $160.33 billion. The rise in deposits was led by foreign currency non-resident (bank) or FCNR(B) accounts. These accounts received $6.75 billion in inflows during the period, higher than the $5.53 billion recorded a year ago. The total amount parked in FCNR(B) accounts reached $32.49 billion by the end of February 2025. These deposits, held in freely convertible foreign currencies, provide a hedge against currency fluctuation risks for tenures ranging from one to five years. Non-resident external (NRE) deposits saw inflows of $4.01 billion, compared to $2.63 billion in the year-ago period. The total amount in NRE deposits reached $97.93 billion. These accounts, also maintained in foreign currency but repatriable, remain a key route for NRIs to send money to India. Non-resident ordinary (NRO) deposits received $3.79 billion in the April–February period, slightly up from $3.63 billion in the same months last year. Outstanding NRO deposits stood at $29.9 billion in December 2024. These rupee-denominated accounts are used by NRIs to manage income earned in India, such as rent, dividends, or pension. (Join our ETNRI WhatsApp channel for all the latest updates) Sequentially, however, the outstanding NRI deposits in February declined by $873 million from $161.21 billion recorded in January 2025.
