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Converting existing Indian bank savings account to NRO/NRE accounts

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srsw
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Converting existing Indian bank savings account to NRO/NRE accounts

Post by srsw » Sun Dec 22, 2019 11:57 pm

Any recent experience of converting existing savings accounts to NRO/NRE accounts, either in the UK or India?

1. Is it better to do it in India or the UK?
2. Any penalties for converting late?
3. What sort of documents do they need?

I'm mainly interested in ICICI and SBI process. I did check their websites but it's not that straightforward as so many forms and proofs, etc. hence need suggestions on doing it from UK Vs India. Thanks.

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CR001
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Re: Converting existing Indian bank savings account to NRO/NRE accounts

Post by CR001 » Mon Dec 23, 2019 5:36 am

How is your question related to immigration issues?
Char (CR001 not Casa)
In life you cannot press the Backspace button!!
Please DO NOT send me a PM for immigration advice. I reserve the right to ignore the PM and not respond.

srsw
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Re: Converting existing Indian bank savings account to NRO/NRE accounts

Post by srsw » Mon Dec 23, 2019 8:46 am

CR001 wrote:
Mon Dec 23, 2019 5:36 am
How is your question related to immigration issues?
Sorry, I wasn't 100% sure which subforum it should go. Similar queries were in this forum hence I added it here. Please move it to general forum if that's the best place for this question.

srsw
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Re: Converting existing Indian bank savings account to NRO/NRE accounts

Post by srsw » Sat Jan 11, 2020 10:36 pm

Just bumping up the question again.

Just for clarity, those who moved from India to UK on a long term basis or qualify as non-resident Indians (NRIs) must change their Indian bank accounts to NRE/NRO accounts, hence this query.
Don't rely completely on my answers..pls check relevant UKVI sources

jojo001
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Re: Converting existing Indian bank savings account to NRO/NRE accounts

Post by jojo001 » Mon Jan 13, 2020 7:36 am

Is there any particular reason to convert the resident account to NRO.

It's far easier to open a new NRE/NRO account with another bank and transfer your funds from the older account to the new NRO account.

All this can be done while in the UK and close down the Old account at your convenience.

This will not cause any issues as long as you are not transferring more than a few lakhs .

srsw
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Re: Converting existing Indian bank savings account to NRO/NRE accounts

Post by srsw » Mon Jan 13, 2020 7:48 am

jojo001 wrote:
Mon Jan 13, 2020 7:36 am
Is there any particular reason to convert the resident account to NRO.

It's far easier to open a new NRE/NRO account with another bank and transfer your funds from the older account to the new NRO account.
Pl
All this can be done while in the UK and close down the Old account at your convenience.

This will not cause any issues as long as you are not transferring more than a few lakhs .
Thanks for your response.

I have LIC policy premium automatic payments, mutual funds linked to existing account, PPF account... These are all in place for many years when I was back in India, so thinking it would be easy to convert existing accounts.

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Re: Converting existing Indian bank savings account to NRO/NRE accounts

Post by jojo001 » Tue Jan 14, 2020 12:42 pm

srsw wrote:
Mon Jan 13, 2020 7:48 am
jojo001 wrote:
Mon Jan 13, 2020 7:36 am
Is there any particular reason to convert the resident account to NRO.

It's far easier to open a new NRE/NRO account with another bank and transfer your funds from the older account to the new NRO account.
Pl
All this can be done while in the UK and close down the Old account at your convenience.

This will not cause any issues as long as you are not transferring more than a few lakhs .
Thanks for your response.

I have LIC policy premium automatic payments, mutual funds linked to existing account, PPF account... These are all in place for many years when I was back in India, so thinking it would be easy to convert existing accounts.
Would suggest that you change all the mutual funds to nre status via a nre account as soon as possible.

If you ever have to bring money from your investments back to the UK with NRE account funded mutual funds you do not need any additional paperwork.

Regarding LIC I am not sure if non residents (mon resident and not indian nationals) are eligible in the first place.

jojo001
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Re: Converting existing Indian bank savings account to NRO/NRE accounts

Post by jojo001 » Tue Jan 14, 2020 3:07 pm

Regarding LIC you have to inform them ..See the link
[https://www.licindia.in/Customer-Services/NRI-Center]

srsw
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Re: Converting existing Indian bank savings account to NRO/NRE accounts

Post by srsw » Wed Jan 15, 2020 9:59 am

Thanks jojo001.

I'm aware LIC policy can be continued but need to fill a few forms to confirm autodebit from NRO account. I'll go through the process again in detail from the links you provided.

I'm not sure once an account is converted to NRO/ NRE if the account number remains same or changes. If it remains same then I can continue those mutual funds without change as I've invested long time back. It's just the maturity amount/withdrawals that go into that account.

I'm not planning to bring money to UK (at least no plans as of now) so need to figure out this whole process.

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