How to Open a Bank Account in India

Opening a bank account in India can be useful in a variety of situations. If you’re an Indian citizen living abroad, it can enable payments, investments, and business transactions in India. On the other hand, if you’re planning to visit India as a tourist or student, it can streamline transactions during your stay.

But how do you go about opening a bank account in India? The process depends on whether you’re a foreign national, resident, or Non-Resident Indian (NRI). Here are the basics you need to know.

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Key takeaways

• Residents of India can visit a local bank branch to open a standard resident bank account.
• Non-Resident Indians (NRIs) can often open various types of Indian bank accounts remotely from abroad.
• Foreign nationals can generally access a certain type of Indian bank account in person in India.
• Opening a bank account in India requires proof of identity, address, and legal status.

Can you open a bank account in India

You can generally open a bank account in India if you’re a resident of India, an Indian citizen living abroad, or a foreign national visiting India. However, the application process and type of bank account available to you will depend on your legal status in the country.

Non-Resident Indians (NRIs)

Non-resident Indians (NRIs) are Indian citizens who live abroad and don’t qualify as Indian residents for tax purposes. While you can’t open a standard resident bank account as an NRI, you can often open a variety of other accounts, including:

• Non-resident External (NRE) accounts: NRE accounts are designed for making payments and investments in India using income earned abroad. Deposits are made in foreign currency and converted into rupees at the current exchange rate. These accounts are tax-free in India.
• Non-resident Ordinary (NRO) accounts: NRO accounts are designed primarily for managing income earned in India, such as pensions, rent, or dividends. However, foreign currency deposits are typically allowed and converted into rupees when received. These accounts are taxed in India.
• Foreign Currency Non-Resident (FCNR) accounts: FCNR accounts are s

These three NRI account types also tend to be available to Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) living abroad.

Residents of India

Residents of India can open standard domestic resident bank accounts. To be considered a resident for tax purposes, you must:

• Spend 182 days or more in India during the financial year, or;
• Spend more than 60 days during the previous year and 365 or more days in the preceding four years.

Additionally, standard resident accounts are often available to foreign nationals who are legally employed in India.

Foreign nationals visiting India

Foreign nationals of non-Indian origin who visit India, including tourists and students, can typically open NRO accounts. However, you can only fund these accounts through international transfers and the sale of foreign currency that you legally bring into the country.

When returning home, the remaining funds can only be withdrawn if the account hasn’t been open for more than six months and hasn’t been credited with local funds (aside from any interest accrued).

Can you open an Indian bank account from the US?

It’s possible to  open an Indian bank account from the US if you’re an NRI. However, you’ll need to find a bank that offers NRI accounts and allows you to open the account online. Popular options include HDFC Bank, SBI Bank, and HSBC India.

If you’re not an Indian citizen but want to open an account for an upcoming trip to India, you’ll generally need to wait until you get to India to open the account in person. Similarly, banks typically require residents to visit a branch to open a standard resident account.

How to open a bank account in India from the USA

If you want to open an NRI bank account in India from the US, here are the key steps you’ll generally need to follow.

1. Choose the type of account you need

The first step is to decide which type of bank account you need. Common options include the three accounts covered above:

• NRE accounts are often best if you want to deposit foreign earnings and convert them to rupees, while keeping the funds fully repatriable and tax-free in India.
• NRO accounts are better for managing income earned within India, such as rent, dividends, or pension payments.
• FCNR accounts can be a good fit if you want to hold your money in a foreign currency and reduce the risk of losses due to exchange rate fluctuations.

Once you know which account types you want, you can shop around to see which Indian bank offers the best option.

2. Collect what you’ll need to open your account

Each bank sets its own rules for opening an NRI bank account, but there are a few common requirements you’ll find across the best banks in India:

• Proof of identity (e.g., valid Aadhaar card, passport, voters’ ID, or permanent driving license)
• Proof of address (e.g., valid Aadhaar card, passport, voters’ ID, or permanent driving license)
• Proof of Indian origin or overseas visa
• A recent photo of you
• A Foreign Account Tax Compliance Act (FACTA) declaration

Banks also typically require that your documents be attested by you and a third party or an overseas bank branch. Uploading them without attestations can cause delays in the application process.

3. Fund your initial deposit

Indian banks may require a minimum deposit to establish an NRI account. If yours does, you’ll need to deposit the funds before you can move forward with opening the account. Be sure to check for minimum deposit requirements as you shop around to ensure the account suits your budget and preferences.

Pros and cons of opening an account in India

Opening a bank account in India can be beneficial for a variety of reasons, but it can also come with a few drawbacks. Here are the main pros and cons to consider:

Pros

• Simplify spending and payments in India: An Indian bank account makes it easier to cover everyday expenses in India. You won’t have to convert currency from USD to INR for each transaction, and can potentially make instant payments through the Unified Payments Interface (UPI).
• Streamlines cross-country money management: NRE accounts allow NRIs to store foreign earnings in India while maintaining the ability to transfer funds abroad.
• Useful for managing Indian income and investments: Resident and NRI accounts can help people manage salaries, rental income, pensions, and investments held in India.
• Tax and repatriation benefits: NRE and FCNR accounts aren’t taxed in India and are fully repatriable.

Cons

• Some accounts require an in-person visit: While NRI accounts can typically be opened from other countries, resident and tourist accounts often require a visit to a bank branch in India to complete the process.
• Accounts may have restrictions on transferring money abroad: Certain accounts, such as NRO accounts, may include repatriation limits or additional paperwork requirements.
• Currency exchange risk may apply: Holding funds in Indian rupees can expose account holders to exchange rate fluctuations when converting money back to another currency.
• Fees and banking features vary between banks: Minimum balance requirements, service quality, online banking tools, and international accessibility can differ significantly depending on the bank and account type.

Common fees and other considerations

Before opening a bank account in India, it’s important to review the bank’s fees, balance requirements, and eligibility rules. These can vary by account and impact your total costs and ability to access the account. For example, banks may charge fees for services such as ATM withdrawals, wire transfers, debit card transactions, and paper statements. If you’re looking for an NRI account, you’ll also want to check for charges related to international transfers and currency conversions.

Beyond that, check whether the account can be opened online or requires an in-person visit, as it often depends on your residency status and the bank’s policies. Further, see if the bank offers key features that matter to you, such as English-language support, mobile banking apps, international debit cards, or integration with India’s digital payment systems.

Transfer money between accounts with Western Union

Once you open a bank account in India, the next step is to fund it. If you’d like to transfer money from the US or another country, Western Union makes it fast and affordable. You can use our international money transfer app or website to arrange the transfer within a few minutes. Alternatively, you can visit a Western Union location near you if you’d rather set it up in person. Either way, you’ll simply need to enter the transfer details, along with your Indian account number and bank name.

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