Browsing: NRO Account Conversion

When an individual becomes a Non-Resident Indian (NRI), many financial obligations and legal responsibilities change. One critical change is the status of your savings account in India. According to India’s Foreign Exchange Management Act (FEMA), NRIs are not allowed to operate resident savings accounts and must convert these accounts into an NRO (Non-Resident Ordinary) account. This article will dive deep into why this conversion is necessary, its implications, and how NRIs can manage their savings efficiently. The Legal Obligation: Why NRIs Must Convert Savings Accounts Under FEMA guidelines, an individual is considered an NRI if they live outside India for…