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🟦 NRIs Returning to India: What Happens to Accounts?🟦

 

🟦 NRIs Returning to India: What Happens to Accounts?🟦

🔸 Q1. What happens to my NRE and FCNR accounts when I return to India?

🟩 Your NRE account must be converted to a resident savings account immediately.
🟪 Your FCNR account can be continued until maturity, then converted to an RFC (Resident Foreign Currency) account.

🔸 Q2. Do I have to convert my NRE account right away?

🟥 Yes. Immediate conversion is mandatory once you become a resident under FEMA.

🔸 Q3. Can I keep my FCNR account open until it matures?

🟦 Yes. You may retain your FCNR account until its original maturity.

🔸 Q4. What happens after FCNR maturity?

🟨 It must be converted into a Resident Foreign Currency (RFC) account.

🔸 Q5. What is an RFC account?

🟫 An RFC account lets you hold foreign currency legally after becoming a resident.
Ideal for income from abroad or future travel plans.

🔸 Q6. How do I convert my accounts?

✅ Step 1: Re-designate NRE account as a Resident Savings Account
✅ Step 2: On FCNR maturity, transfer funds to an RFC account

🔸 Q7. Is there a grace period for converting the NRE account?

🚫 No grace period. Conversion is required immediately.

🔸 Q8. Why is conversion necessary?

🧾 To align your banking and tax status with Indian regulations and avoid penalties.


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