When do you need to convert your resident account to an NRO account?*

Once your resident status changes to an NRI, you will need to either close or convert your resident account to an NRO account. Under the prevailing FEMA regulations, you will be considered an NRI if:

• You are residing overseas (except Nepal or Bhutan) for more than 182 days in one Financial Year (April-March); or

• You have demonstrated an intent to go abroad or reside outside India for an uncertain period of time. The reasons include taking up employment outside India, carrying out business/vocation, pursuing higher education or any other purpose.

However, you are not eligible to convert your Resident Indian (RI) account to an NRO account, if you are:

• Residing in Nepal or Bhutan

• Travelling abroad on a short-stay visa (like a tourist visa or visa issued for family visits and business trips)

In case you fail to convert your resident savings account to an NRO account there are penalties involved, including:

• A fine of up to three times the amount in your bank account; or

• A fine of ₹2 lakh if the amount is not quantifiable.

Additionally, you may be subject to a penalty of ₹5,000 per day from the first day of non-compliance till the penalty is duly paid.

*Section 13, FEMA Act, 1999. 
 

Process and documentation for converting RI account to an NRO account

You can convert your resident account to an NRO account by:

• Visiting your nearest branch and submitting your application with relevant documentation; or

• Using digital channels such as your bank’s internet banking or mobile banking application to submit your request.

Along with filling the requisite forms, you would also need to submit relevant documentation and undergo a Re-KYC (Know Your Customer) process. Banks would require the following documents*.

• Application form for converting resident Indian account to an NRO account;

• Identity proof: Passport/Aadhaar card/driving license/Voter's ID;

• Address Proof: Driving license, Voter’s ID issued by the Election Commission of India, proof of possession of Aadhaar number, job card issued by NREGA, letter issued by the National Population Register, Passport;

• Passport size photographs;

• Foreign Account Tax Compliance Act (FATCA) declaration as applicable for the United States (US) or Common Reporting Standard (CRS) for the United Kingdom (UK), Canada, or any of the 100+ countries that have adopted CRS*;

• Permanent Account Number (PAN) card or, in the absence of a PAN card, Form 60 for opening a savings bank account. Please note, a PAN Card is mandatory to convert a resident current account to an NRO account.

*The list mentioned above is indicative and not exhaustive. These documents may differ from bank to bank. You may want to consult your bank for more details.