Complete Guide to Flywire International Payments - Exchange Rates, Charges, Alternatives [2024]
Learn how Flywire works for international payments. This guide covers exchange rates, fees, security, and alternatives to sending money abroad.
Non-Resident Indians (NRIs) may be interested in opening NRI accounts for their domestic and international earnings. Here is a step-by-step guide on opening NRI accounts with the State Bank of India if you are in the UAE.
Per the Reserve Bank of India, Non-Resident Indians are Indian citizens who live outside of India for more than 182 days a year. If you become an NRI, it is required that your domestic accounts be converted into NRI accounts.
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You can open an SBI NRI account from the UAE. SBI has an initiative that allows applicants to open an NRE or NRO account from anywhere in the world.
NRI accounts are convenient banking tools for NRIs to save money and avail tax benefits when residing outside of India. The accounts can come as a savings bank account or a fixed deposit. And whether you hold an NRE or an NRO, your funds will be held in Indian rupees.
The intention with an NRE or NRO account is to have a place to park funds and earn interest for those that intend to return to India eventually. It is not required to return to India however; some use the funds to repatriate to the country they have decided to reside in. Let’s take a look at the difference between an NRE and an NRO account.
NRE stands for Non-Resident External account, which is a type of NRI account that permits funding from outside of India. It is a way to park foreign income and salary and is repatriatable. There are no taxes paid on this income in India and is not subject to income taxes.
NRO stands for Non-Resident Ordinary account. This account is to manage earnings from within India that occur when you are abroad. Such earnings like rental income in India are to be placed in an NRO account when you are overseas. NRO accounts can be held jointly with a Resident Indian and is subject to income taxes.
🔖 Read more: Full guide to NRE and NRO accounts |
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SBI has additional NRI services such as term deposits, car loans, home loans, education loans, and investment accounts.¹
If you are looking to prepare your application, you will need to provide documents verifying your NRI status and Indian identity. Here are the documents required to open an SBI NRI account:
If you are not able to go to an SBI branch for opening the account, you will need to provide any of the following:
These documents are specifically for NRIs. If you are a PIO or OCI holder, there is a different set of requirements. Also, ensure to follow the directions provided with your application, additional documentation may be required. ²
There are a few ways to open an NRI account which include online and in-person. Let’s take a look at how to open an SBI NRI account if you are in the UAE.
SBI has a portal for online applications for NRI accounts. This process is only for setting up new NRI accounts and not for converting an existing Resident Indian account to an NRI account.
Here are the steps:³
After completing your online application follow the steps below:
If you would prefer, SBI has a preliminary verification for applications for new applicants who would prefer the bank to scan their documents digitally to make sure they have everything they will need. It requires that your full application be available for upload.
With an online submission, your documents for KYC are required to be attested. You can get the signatures and attestation from:
Your documents should be submitted within 45 days of completing your online application.
State Bank of India in Dubai is primarily for business and trade operating between India and the UAE. It is recommended to go through SBI’s process of an online application for opening an NRI account or opening the NRI account in person in India.⁴
However, you may want to contact the SBI Dubai representative officedirectly to learn more about their instant NRI account opening procedure. SBI does not provide additional details online about it, but NRI residents in Dubai could get an immediate account number and account activation within 2-3 working days.⁵
A simple way to open an SBI NRI account, whether you are trying to open a new account or convert an existing one, is to head to your local SBI branch in India.
You can download an application and complete it before heading to the bank branch, or pick a manual application from the bank.
Bring all of your documents and set up a time to open the account with a bank representative. Since you are providing the documents in person at a branch, they will not be required to be attested but they must be originals.
SBI requires a minimum account balance of ₹1,00,000 for NRE and NRO accounts.⁶
There are two easy ways to send money to the UAE from India:
With international outward remittance bank transfers, you can send money from your local Indian bank account to an account abroad. You can complete the transfer using your bank’s online net banking service or by going to your local bank branch.
Banks charge two main fees: a transaction fee and a hidden exchange rate fee. The first fee is a charge for completing the transaction and differs per bank.
The second fee is hidden in the exchange rate you get from the bank. The banks charge users an exchange rate that is weaker than the real exchange rate that you usually see on Google. And in that difference, the bank can sneak in a hidden fee in every rupee you convert. Although the difference can seem small, it can end up costing your transfer more than you expected.
Online money transfer providers are an easy and fast way to send money from India. They can be accessed online or through convenient mobile apps that pull from your Indian bank account and send money overseas.
Money transfer providers like Wise offer the real exchange rate and just one low fee when sending money overseas. And it is totally free to sign up and start using.
Here are the easy steps to send a transfer overseas with Wise:
Wise is an easy, fast, and cheap way to send money around the world |
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With Wise’s smart tech, you can ensure that your transfer is safe and secure while tracking it from payment to deposit through the app.
Sources used for this article:
All sources checked as of 9 June, 2022
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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