Scheme for Foreign Nationals

1. Can foreign tourists on short visit open a bank account in India?


Yes. Foreign tourists of non-Indian origin during their short visit to India can open a NRO a/c (current / savings) with AD Bank in India. However, individuals of Bangladesh and Pakistan nationality may require necessary approvals/ visas, as mentioned in below FAQ no. 2.

Further, such account can be maintained for a maximum period of 6 months only. 

2. Can individual/entities of Pakistan and Bangladesh open a bank account in India?


Opening of accounts by individuals/entities of Pakistan nationality/ownership and entities of Bangladesh ownership shall require prior RBI approval.

However, individuals of Bangladesh nationality may be allowed to open NRO account subject to individual/s holding a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/Foreigner Regional Registration Office (FRRO) concerned.  

Further, citizens of Bangladesh/Pakistan belonging to minority communities in those countries, namely, Hindus, Sikhs, Buddhists, Jains, Parsis and Christians, residing in India and who have been granted Long Term Visa (LTV) or whose application for LTV is under consideration, are permitted to open only one NRO account with an AD bank in India, subject to certain conditions.

3. What credits can be made to such bank account maintained by a foreign tourist?


Only following funds can be credited to NRO account of a foreign tourist:

-      Funds remitted from outside India through banking channels or

-      Funds obtained by sale of foreign exchange brought by tourists to India

-      Interest accrued on balances held in NRO account.

4. Can the NRO account be used for making local payments?


Yes. Tourists can freely make local payments through NRO account.

5. Can foreign tourists repatriate the balance held in their NRO account at the time of departure from India?


Yes. AD Banks have been allowed to convert the balance in account for payment to the account holder at time of departure from India into foreign currency, provided the account has been maintained for a period not exceeding 6 months and account has not been credited with any local funds, other than interest accrued thereon.

6. Can foreign nationals resident in India open a resident Rupee A/c?


Yes. Foreign nationals employed in India holding valid visas can open and maintain a resident Rupee A/c in India. 

7. Can AD Banks remit proceeds on closure of resident Rupee A/c opened by a foreign national resident in India to his overseas A/c?


Yes, AD Banks can remit proceeds of resident Rupee account opened by a foreign national resident in India (subject to payment of taxes).

In order to facilitate such foreign nationals to collect their pending bonafide dues, AD Banks may, permit foreign nationals to re-designate their resident Rupee A/c maintained in India as NRO A/c on leaving the country after their employment. The amount repatriated abroad should not exceed USD one million per financial year. Further, the account should be closed immediately after all the dues have been received and repatriated by the account holder

8. How much foreign exchange can be brought in while visiting India?


A person coming to India from abroad can bring foreign exchange without any limit. However, if aggregate value of foreign exchange in the form of currency notes, bank notes or traveller’s cheques brought in exceeds USD 10,000 or its equivalent and/ or the value of foreign currency alone exceeds USD 5,000 or its equivalent, it should be declared to Customs Authorities at the Airport in Currency Declaration Form (CDF) on arrival in India.

9. Can persons resident in Nepal and Bhutan have accounts in India?


Yes. Person’s resident in Nepal and Bhutan can open Indian rupee accounts with an AD in India.

10. Is the foreign national required to pay taxes in India on income earned/received in India? Is there any liability to file ROI in India?


Yes. A foreign national, irrespective of his residential status, may be required to pay taxes on income earned/received in India and file ROI in India if his income exceeds the basic exemption limit (limit for FY 2019-20 is Rs. 2,50,000/-) subject to other provisions of the Act. TDS in the case of foreign nationals is generally deducted at the highest rate and such excess taxes deducted may be claimed as refund by filing ROI in India.

                                                                                                                                                                                                                 - Updated 10/2023