Being an NRI means doing things differently from a resident Indian. This means you will have a different set of rules and products for your banking and finance needs. As an NRI, you need to open an NRI bank account to handle banking transactions in India.
Though most Indian banks offer NRI account opening services, choosing the right one can be challenging. There are certain crucial factors one must consider when choosing the right bank. This can turn out to be a major lifesaver down the line.
In this blog, we look into the reasons NRIs should consider before choosing a bank and the kind of bank account they open.
How to Choose the Best Bank for an NRI Account?
Choosing the right banking option requires a holistic review of all major aspects present in a banking service. These factors include everything from ease of account opening to investment and wealth services.
| Banking Feature | Why it’s important |
| Global reach and accessibility | Your bank should be easily accessible in your country of residence and have plenty of branches or local tie-ups for maximum convenience. |
| Exchange rates and remittance speed | Better rates and faster transfers help you save money and get funds to India quicker. |
| Interest rates and fees | Increases your earnings |
| Digital banking and app experience | A reliable app and online access help you manage your money anytime, anywhere without hassle. |
| Dedicated NRI support | Helps in receiving specialised help without jumping through multiple hoops. |
| Ease of account opening | A streamlined opening process reduces the effort required on your part |
| Investment and wealth services | If you plan to grow your wealth in India, the right bank should give you access to trusted investment options and advice. |
Types of NRI Bank Accounts
There are four types of bank accounts which NRIs can use for their banking and financial purposes in India. Three of them, like the NRO, NRE, and FCNR, have been used traditionally. Since the past few years a new type of bank account - GIFT City offshore account is available for NRIs.
There are some important differences between these bank accounts.
The currency denomination of these accounts. The NRO and NRE accounts are denominated in Indian rupees. FCNR and GIFT City accounts are denominated in major international currencies like USD, Euro, GBP and others.
The tax liability of the bank accounts. Interest earned from NRO accounts is taxable. Interest earned on NRE, FCNR and GIFT City accounts is tax-free.
In the matter of repatriation (taking back your money from India to the country of residence), NRE, FCNR, and GIFT City accounts allow for free repatriation of funds. NRO account has a limit of USD 1 million for repatriation back to the country of residence.
To know more about these types of accounts and fixed deposits offered by them, you can check our blog on Comparing Fixed Deposits: GIFT City FD vs. FCNR vs. NRO vs. NRE
Top Banks Offering NRI Accounts
Now that we’ve established the groundwork for comparing banking options, let’s identify and examine the top banks offering NRI Banking services. Prominent options in the current market include:
1. SBI NRI Account - Great for Global Reach & Reliability
SBI NRI service is a solid and reliable option for your NRI bank account. Being one of India’s banking giants, SBI is great if you value trust, cost-effectiveness and reach over speed and digital accessibility. SBI also has a global application portal for NRIs who are bank customers and are applying from abroad. However, it is recommended that you visit a local branch to open an account instead.
2. HDFC NRI Account - Ideal for Customer Service & Digital Experience
HDFC Bank offers a host of NRI accounts, such as savings, current, salary, and fixed deposit accounts. It is excellent for people looking for a modern, smooth, service-oriented banking experience. Being a private sector bank, its speed and customer service are often comparable to international banks.
3. ICICI NRI Account - Tech-Friendly with Full-Service Banking
Providing a seamless banking experience, ICICI is one of the more tech-forward, globally well-connected banks you can consider for NRI Banking. It offers a full suite of financial options, is digitally accessible, and its customer services are known to be highly responsive.
4. Axis NRI Account - Cost-Effective with Modern Features
Much like SBI and HDFC, Axis is one of India’s largest banks and is considered a well-rounded banking option that mixes convenience, good customer service, and cost effectiveness. It offers modern features and sensibilities without the premium price tag, making it a popular option for thousands of NRIs worldwide.
Key Features & Benefits Comparison of SBI, HDFC, ICICI and Axis Bank NRI Account
Having identified top banking options for setting up a new NRI account and our framework for comparison, all that’s left to do is rank these options.
1. SBI NRI Account
| Feature | Performance |
| Global Reach & Accessibility | SBI operates in 29 Countries with over 191 overseas offices. It has developed dedicated centres known as “Global NRI Centres” in Kerala and Punjab that cater exclusively to NRI clients. It operates over 434 specialised NRI branches. It is best for UAE NRIs because of its focus on GCC countries, as it has established partnerships with 45 exchange houses and 5 local banks. |
| Exchange Rates & Remittance Speed | Offers competitive and transparent exchange rates for remittances in major currencies. They have a specialised remittance service called “Instant Transfer, " enabling real-time rupee remittances from SBI foreign offices in 15 countries. |
| Interest Rates & Fees | 2.70 % p.a. for balances under Rs. 10 Cr, 3.00% p.a. for balances of Rs. 10 Cr and above. |
| Digital Banking & App Experience | SBI’s “YONO SBI” facilitates digital account opening for NRIs, allowing seamless set-up of NRE/NRO accounts, with a user-friendly interface and digital onboarding process. |
| Dedicated NRI Support | Provides 24/7 customer support through dedicated NRI helplines and Global NRI Centres. |
| Ease of Account Opening | NRIs can seamlessly open NRE/NRO accounts online via the YONO SBI application. It has also introduced a “TAB-based digital onboarding process” that complements the account setup with digital document verification (thereby eliminating the need for physical paperwork. |
| Investment and Wealth Services | Offers a comprehensive suite of investment options, including mutual funds, equity trading, portfolio investment schemes, etc. |
2. HDFC Bank NRI Account
| Feature | Performance |
| Global Reach & Accessibility | Extensive international presence with key focus on GCC countries, thanks to its introduction of “NRI Access Points”. It has also set up major offices worldwide in areas such as Hong Kong, Singapore, London etc. |
| Exchange Rates & Remittance Speed | Offers competitive rates and facilitates inward remittances in 22 countries through its network of correspondent banks. Outward remittances, however, take up to 72 hours for processing. |
| Interest Rates & Fees | 3.50% p.a. for balances of and above Rs. 50 Lakh, 3.00 % for balances below Rs. 50 lakh [available in NRE Accounts] |
| Digital Banking & App Experience | Provides a wide range of digital banking platforms, including mobile banking, WhatsApp banking, and online banking. |
| Dedicated NRI Support | Offers specialised NRI services such as property purchase assistance, getting loans against assets, etc., through a dedicated NRI banking platform. |
| Ease of Account Opening | NRIs can open NRE/NRO accounts through a streamlined process, including options to convert existing resident accounts to NRO accounts. |
| Investment and Wealth Services | Offers a comprehensive suite of investment options, including mutual funds, equity trading, portfolio investment schemes, etc. |
3. ICICI NRI Account
| Feature | Performance |
| Global Reach & Accessibility | ICICI Bank has a significant international presence, including branches in Singapore, Bahrain, Dubai (DIFC), and New York and representative offices in Bangladesh, China, Indonesia, Malaysia, South Africa, the UAE, and the UK. Additionally, ICICI Bank Canada and ICICI Bank UK Limited are wholly owned subsidiaries. |
| Exchange Rates & Remittance Speed | Offers competitive and transparent exchange rates for remittances in major currencies. It also supports remittances through dedicated channels such as Money2India, which can support any bank to any bank fund transfers. |
| Interest Rates & Fees | 3.50% p.a. for balances of and above Rs. 50 Lakh, 3.00 % for balance below Rs. 50 lakh [available in NRE Accounts] |
| Digital Banking & App Experience | Provides a wide range of digital banking platforms, including mobile banking (through its iMobile Pay App), WhatsApp banking, and online banking, and includes features such as UPI Integration and Face ID login. |
| Dedicated NRI Support | ICICI Bank provides specialised NRI services, including a dedicated Relationship Manager to manage banking requirements, 24x7 access to accounts via mobile app and internet banking, and a 24x7 call centre to resolve queries. Additionally, the NRI Pro Program offers preferential rates on money transfers and loans, along with other exclusive benefits. |
| Ease of Account Opening | Similarly streamlined as other options. The NRI account is typically opened within 72 hours after receiving the complete documentation |
| Investment and Wealth Services | Offers a comprehensive suite of investment options for NRIs, including an integrated 3-in-1 investment account comprising a Demat, Savings, and trading account. |
4. Axis Bank NRI Account
| Feature | Performance |
| Global Reach & Accessibility | Axis Bank operates 9 international offices, including branches in Singapore, Hong Kong, Dubai (DIFC), Shanghai, and Colombo, as well as representative offices in Dhaka, Dubai, Sharjah, and Abu Dhabi. Additionally, the bank operates Axis Bank UK Limited, a wholly-owned subsidiary in the UK. |
| Exchange Rates & Remittance Speed | Offers competitive rates and facilitates inward remittances through its correspondent network of branches via a feature known as “SWIFT Transfer”, costing Rs 300 per remittance. Outward remittances are processed promptly, and fees can range from Rs. 1500 to 2000 per remittance. |
| Interest Rates & Fees | 3.50% p.a. for balances of and above Rs. 50 Lakh, 3.00 % for balance below Rs. 50 lakh [available in NRE Accounts] |
| Digital Banking & App Experience | Provides a wide range of digital banking platforms, including mobile banking (through its Axis Mobile), WhatsApp banking, and online banking, and includes features such as UPI Integration and Face ID login. |
| Dedicated NRI Support | Offers specialised NRI services such as property purchase assistance and getting loans against assets, etc., through a dedicated NRI banking platform. |
| Ease of Account Opening | NRIS can open NRE/NRO accounts online by registering on the digital platform, receiving assistance from a virtual account manager, filling out and signing the application form, uploading the required KYC documents, and arranging for document pickup (which is a complimentary service provided by Axis Bank). |
| Investment and Wealth Services | Offers a comprehensive suite of investment options for NRIs, including an integrated 4-in-1 investment account comprising a Demat, Savings, Trading and Portfolio Investment scheme (PIS) account. |
Which Bank Is Best for NRI Accounts in India?
Deciding on the best option for setting up your NRI account is highly subject to individual preferences and requirements. However, considering that each Bank offers its unique advantages and features, it is essential to thoroughly review your preferences and identify how these perform across key requirements. After all, what may be well suited for your banking needs might not necessarily be the same for the next person.
