Dear ILites, This thread is about savings made in India. When I worked in India, I made several investments and then married and came here. I want to know if there are legal implications to continue holding these assets in my name, as I am an NRI now. 1. Provident Fund - I know it's not allowed to deposit any further in my PF account... but I can continue holding what I already deposited earlier, isn't it? 2. Bank accounts (Savings account, demat account) 3. Fixed deposits in bank 4. Industrial bonds 5. LIC 6. NSC It would be great if you could tell me specifically for these instruments if it is legal to continue holding them. If not, what to do? Also, can I get a new insurance plan or make an FD (in India) now, although I am an NRI? Thanks! Sandhya
Sandhya, As an NRI I continued holding my bank accounts for a year. After that, I converted them all into NRI accounts(interests were better at that point). I did close my PF account and withdraw all the funds, didn't check about holding it. Btw, you can continue holding and investing in new FDs. You can also continue to buy insurance policies in India. Btw, please be aware that GC holders and US citizens need to declare international income for the same. If your FDs and other assets give you a yearly income greater than $300 in India or any other country outside the US, you need to declare it while filing taxes in the US if you have your GC or are a USC. I've no idea on NSC and industrial bonds, never invested in those while in the US. Btw, if you do know a financial advisor in India, you can check with them. In my experience, they have limited knowledge of NRI regulations but they do have the resources to check and get back with you. You may have to pay a fee for the same.
Dear Laks, Thank you very much for your reply. You have given me valuable answers. :bowdown Some more questions. 1. Is it possible to convert resident bank account to NRI account through internet/post? Or is it required to go to the bank in India personally for the conversion? 2. You said I can make new FDs and LICs though I am an NRI. Do you mean I can make a new FD only via the NRI account? Why I am asking is, my accounts are still resident and I want to know what to do with some of the FD's that mature now... can I renew them? Is it legal? Or shd I convert my bank account to NRI first and then do all these renewal and deposit stuff? Thanks for the info about the tax too! Yes, I will consult some financial advisor on my next trip. Regards, Sandhya
Sandhya, I did come in person to get the accounts changed. What they did was create a new NRI a/c and transfer funds into it, it was an easy process. If you need to get it done before you get a chance to come, I'd recommend you send someone to the bank and enquire. I have opened NRI a/c's from there. I'd fill out the form, get the visa/passport copies/income certificates and an authorization letter authorizing my Dad to open and operate the account. The authorization letter has to be notarized from there. Maybe you can send a new account opening form to the bank along with details of your resident account for the fund transfer(or you could do it online). You can also send in a letter to close your resident a/c after the transfer. It's a round about way, it will be easier if you can go in person. Technically, you cannot renew your resident FD. You will have to convert it to NRI FD(which means on maturity instead of renewing open new NRI FDs with the same funds). But don't they automatically get renewed if you don't intimate the bank otherwise? Not sure of the legality of not converting the FDs from resident to NRI. HTH, L
Btw, to open the account, they need to mail you the forms, if you choose that route. Not sure if they have online versions of the forms available(depends on the bank - I banked with good old SBI and 8 yrs ago they did not have online a/c opening forms).
Dear Laks, Thanks again for your detailed reply. It looks like going in person is the better option. I checked the website, and they say its not possible for a person holding a Power of Attorney to open an NRE/NRO account on my behalf. I was not sure if this sort of conversion of resident to NRI account is possible online... Looks like it isn't possible. So, i will do it next time I go to India. About the FDs, I really dont know if they get renewed automatically. Will find out... Thanks again! :cheers Sandhya
