Last month, Vikram called from San Francisco.
"I'm moving back to Bangalore in three months. Which bank should I use? Everyone says HDFC. My cousin swears by ICICI. I'm confused."
Choosing the right bank isn't about following what your friends do.
It's about matching features to your specific situation - how much you're bringing back, whether you'll keep foreign currency, how often you'll repatriate, and whether you value branch access or digital convenience.
We haveve helped over 500+ NRIs transition their banking back to India. The banks that work best vary dramatically based on individual needs.
This guide compares the top 6 banks for returning NRIs, covering RFC account offerings, conversion processes, fees, and digital capabilities.
By the end, you'll know exactly which bank fits your situation.
What Returning NRIs Need from a Bank
Your banking needs change the moment you decide to return.
You're no longer just an NRI parking salary overseas. You're transitioning between two financial systems.
Critical features:
RFC account availability - Can you hold foreign currency without forced conversion?
Smooth conversion process - How easy is it to re-designate NRE/NRO accounts?
Relationship manager support - Will someone guide you through the maze?
Digital banking quality - Can you manage everything online?
Branch network - Do you need physical access in multiple cities?
Transparent fees - Are costs upfront or hidden?
Repatriation ease - Can you move money back if needed?
👉 Tip: Don't choose based on interest rates alone. The difference between 3% and 3.5% on savings is negligible compared to poor service or high hidden fees.
1. HDFC Bank: Premium Service with Complete Offerings
HDFC Bank dominates NRI banking and they've built strong services for returning NRIs.
RFC Account Features
Currencies offered: USD, GBP, EUR, JPY (for savings); AUD, CAD, SGD (additional for FDs)
Account types: RFC savings, current, and fixed deposits (6 months to 3 years)
Interest rates: USD 0.25-0.50% p.a., varies by currency and deposit type
Minimum balance: ₹25,000 (Metro/Urban for new accounts) or equivalent in foreign currencyConversion Process
Conversion Process
HDFC's process is well-documented. Their relationship managers actually understand RFC accounts (surprisingly rare).
Timeline: 7-10 business days for full conversion
Documentation: Standard - passport, address proof, PAN, declaration form
Support: Dedicated NRI helpline with decent response times
Digital Banking
Mobile app is solid. Internet banking works smoothly. WhatsApp banking handles basic queries.
Standout feature: Investment Services Account links directly to mutual funds, making transitions seamless.
Fees Structure
Account maintenance: Free if minimum balance maintained
Non-maintenance penalty: ₹500-750 per month
International debit card: ₹300-500 annual fee
Forex markup: 0.5-1% (better than most)
NEFT/RTGS: Free online, ₹25-₹200 at branch
Best For
Returning NRIs who want premium service, relationship manager access, and strong investment integration. Ideal if you're bringing back significant assets (₹50 lakh+) and value human support over pure digital.
Also Read -HDFC Bank International Branches
2. ICICI Bank: Digital-First with Superior App Experience
ICICI Bank invested heavily in digital infrastructure. Their mobile app is the best in Indian banking.
RFC Account Features
Currencies offered: USD, GBP, JPY
Account types: RFC savings and term deposits
Interest rates: USD 0.25-0.75% p.a. (competitive, especially for larger deposits)
Minimum balance: ₹15,000 (Customer ID level for new metro/urban accounts)
Conversion Process
ICICI allows online submission through net banking for conversion requests.
Timeline: 10-12 business days
Documentation: Can upload documents through app/portal
Support: 24/7 NRI helpline with global calling support
Digital Banking
Their iMobile Pay app handles everything - from account opening to loan applications.
Standout features:
- NRI customer portal separate from resident banking
- Money2India integration for remittances
- Investment tracking within the same app
Fees Structure
Account maintenance: Higher than others if minimum balance not maintained
Non-maintenance penalty: ₹500 per month
International debit card: ₹500 annual fee
Forex markup: 3.5% (general); 1.99% for select cards
NEFT/RTGS: Free online
Annual cost estimate: ₹3,200-5,000 depending on usage
Best For
Tech-savvy returning NRIs who prefer managing everything digitally. Perfect if you value app experience over branch access and do high-volume remittances.
3. State Bank of India: Legacy Network with Cost Advantage
SBI is India's largest bank. Their reach is unmatched - crucial if you'll be in tier-2/tier-3 cities.
RFC Account Features
Currencies offered: USD, GBP, EUR, JPY
Account types: RFC savings and fixed deposits (1-3 years)
Interest rates: USD 0.25-0.45% p.a.
Minimum balance: USD 500 / GBP 250 / EUR 500 equivalentC
Conversion Process
SBI's process is more bureaucratic but well-established.
Timeline: 10-15 business days
Documentation: Standard request letter format (downloadable)
Support: Branch-dependent. Varies significantly by location.
Digital Banking
YONO app exists but lags private banks by 2-3 years in user experience.
Reality check: You'll likely visit branches more with SBI than with HDFC/ICICI.
Fees Structure
Account maintenance: Lowest among major banks
Non-maintenance penalty: ₹300-500 per month
International debit card: ₹250 annual fee (cheaper than others)
Forex markup: 1.5-2% (higher than private banks)
NEFT/RTGS: Free online, lowest charges at branches
Annual cost estimate: ₹2,000-3,500
Best For
Cost-conscious returning NRIs who need widespread branch access. Ideal if you're settling in smaller cities or want government bank security. Trade-off is weaker digital experience.
Also Read -SBI fixed deposit interest rates
Quick Comparison: Top 3 Banks
Feature | HDFC Bank | ICICI Bank | SBI | Source Link |
|---|---|---|---|---|
RFC Currencies | USD, GBP, EUR, JPY (Savings); Additional for FDs (AUD, CAD, SGD) | USD, GBP (Savings); Additional for FDs (JPY, AUD, CAD, SGD) | USD, GBP, EUR | |
Minimum Balance | ₹25,000 (Metro/Urban for new accounts) or equivalent in foreign currency | ₹15,000 (Customer ID level for new metro/urban accounts) | USD 500 / GBP 250 / EUR 500 equivalent | |
Conversion Timeline | 5-10 business days (immediate re-designation for FDs) | 5-10 business days | 5-10 business days | |
Branch Network | 9,545 | 7,246 | 22,500+ | |
Forex Markup | 3.5% (international transactions); 1% for DCC | 3.5% (general); 1.99% for select cards | 2.5% (remittances and cards) |
4. Axis Bank: Strong International Partnerships
Axis Bank built solid partnerships with international banks, making remittances and conversions smoother.
RFC Account Features
Currencies offered: USD, GBP, EUR, AUD, CAD (5 currencies)
Account types: RFC savings and fixed deposits
Interest rates: Competitive, especially on FDs - up to 0.60% on USD
Minimum balance: ₹10,000
Conversion Process
Timeline: 7-10 business days
Documentation: Online submission available
Support: Dedicated NRI cell in major cities
Digital Banking
Axis Mobile app is reliable. Not as feature-rich as ICICI but better than SBI.
Standout: Strong FD ladder tools within the app.
Fees Structure
Account maintenance: Moderate
Forex markup: 3.5% (international transactions)
Annual cost estimate: ₹4,000-6,000
Special benefit: No penalty on premature withdrawal for deposits below $1 million
Best For
Returning NRIs in UAE or UK who use Axis's international banking partners for remittances. Good balance between private bank service and reasonable costs.
Also Read - Axis Bank International Branches
5. IDFC FIRST Bank: High Returns with Modern Features
IDFC FIRST is newer but aggressive with rates and features.
RFC Account Features
Currencies offered: USD, GBP, EUR
Account types: RFC savings and deposits
Interest rates: Among highest - up to 0.75% on USD for large deposits
Minimum balance: ₹10,000
Conversion Process
Timeline: 5-7 business days (fastest among major banks)
Documentation: Fully digital submission
Support: Responsive NRI helpline
Digital Banking
Modern app built from scratch. Clean UI. Fast.
Standout feature: UPI support for international SIMs (US, UK, UAE and 9 others). Rare capability.
Fees Structure
Account maintenance: Competitive
Forex markup:3.5% (general)
Annual cost estimate: ₹3,500-5,500
Best For
Returning NRIs who want maximum returns on RFC deposits and cutting-edge digital features. Perfect for those under 40 who prioritize technology and rates over legacy.
6. Standard Chartered: Premium White-Glove Experience
Standard Chartered serves high-net-worth returning NRIs.
RFC Account Features
Currencies offered: USD, GBP, EUR (3 currencies)
Account types: RFC savings, current, deposits
Interest rates: Up to 2.05% on USD for priority clients
Minimum balance: Higher than others - typically ₹50,000+
Conversion Process
Timeline: 5-7 business days
Documentation: Relationship manager handles most paperwork
Support: Dedicated RM for priority clients
Digital Banking
Solid but not exceptional. Focus is on personalized service over app features.
Fees Structure
Account maintenance: Higher fees but offset by relationship benefits
Forex markup: 3.5% (general)
Annual cost estimate: ₹8,000-12,000+
Trade-off: Premium service comes at premium cost
Best For
High-net-worth returning NRIs (bringing back $200K+) who value concierge-style banking, international prestige, and personalized relationship management over cost optimization.
Also Read -Which Fixed Deposit Should You Choose as an NRI
Quick Comparison: Banks 4-6
Feature | Axis Bank | IDFC FIRST Bank | Standard Chartered | Source Link |
|---|---|---|---|---|
RFC Currencies | 5 (USD, GBP, EUR, AUD, CAD) | 3 (USD, GBP, EUR) | 3 (USD, GBP, EUR) | |
Minimum Balance | ₹10,000 (varies by type) | ₹10,000 - ₹25,000 AMB | ₹50,000 | |
Conversion Timeline | 7-10 business days (general) | 7-10 business days (general) | 7-10 business days (general) | |
RFC FD Interest | Up to 0.50% (USD, 1-2 years) | Up to 4.50% (USD, FCNR rates; RFC lower ~0.75%) | Up to 2.05% (USD, priority) | |
Special Feature | International partnerships for remittances | UPI support for international SIMs | White-glove service for priority clients | |
Annual Fees (Estimate) | ₹4,000-6,000 (based on charges) | ₹3,500-5,500 (including penalties) | ₹8,000-12,000+ (premium services) | |
Relationship Manager | For premium accounts | Limited | Yes (for priority clients) |
How to Choose Your Bank
Match your bank to your profile:
Profile 1: Digital Nomad (Age 28-40, Tech Job, $50K-150K savings)
Best choice: ICICI Bank or IDFC FIRST Bank
Why: Superior digital experience, competitive rates, minimal branch dependency
Alternative: Axis Bank if you're in UAE
Profile 2: Established Professional (Age 40-55, Mid-Senior Level, $150K-500K savings)
Best choice: HDFC Bank
Why: Relationship manager access, investment integration, proven track record
Alternative: ICICI if you prefer digital over human touch
Profile 3: Conservative Saver (Any age, Government job background, Security-focused)
Best choice: SBI
Why: Government ownership, massive branch network, lowest costs
Alternative: None - SBI is unmatched for this profile
Profile 4: High Net Worth (Age 45+, Senior Executive/Entrepreneur, $500K+ savings)
Best choice: Standard Chartered or HDFC Bank
Why: Personalized service, global connectivity, wealth management integration
Alternative: ICICI for better digital experience
Profile 5: Tier-2/Tier-3 City Returnee (Any age, Settling in smaller cities)
Best choice: SBI
Why: 22,000+ branches, no alternative comes close
Alternative: HDFC if available in your city
👉 Tip: Open accounts with two banks initially. Use one as primary, keep a second as backup. After 6 months, you'll know which fits better.
Hidden Costs to Watch
Every bank has fee structures that aren't obvious upfront.
Minimum balance penalties: ₹300-750/month if you slip below threshold
Forex markups: The spread between interbank rate and what you get (0.5-2%)
International debit card annual fees: ₹250-500
Cross-currency markup: Additional 3.5% on using your card abroad
Branch transaction charges: ₹25-200 per transaction vs free online
SMS/email alerts: ₹300-400 annually for heavy users
ATM beyond free limit: ₹20-25 per transaction
Total hidden costs can be: ₹5,000-15,000 annually
How to minimize:
- Maintain minimum balance always (set auto-transfer)
- Use online banking exclusively (avoid branch visits)
- Compare forex rates across banks before large conversions
- Opt out of paid SMS services (use app notifications)
The Better Alternative: GIFT City Banking
Here's what most returning NRIs miss.
Traditional banks require converting NRE accounts to resident accounts or RFC accounts. RFC accounts are taxed once you become ROR.
GIFT City investments are different.
Tax-free for all residents - Not just RNOR. Even ROR status holders enjoy tax-free returns.
No conversion needed - Your investment structure doesn't change with residential status.
USD-denominated - Protection against rupee depreciation continues forever.
Full repatriation - No USD 1 million annual limits like NRO accounts.
Belong offers GIFT City USD fixed deposits with:
- 6.0% annual returns
- Zero tax on interest
- Digital account opening
- Doorstep KYC
Compare all options: NRI FD Rate Comparison Tool.
Decision Framework
Use this checklist to decide:
☑ How much are you bringing back?
- Under ₹25 lakh: SBI or Axis
- ₹25 lakh - ₹1 crore: HDFC or ICICI
- Above ₹1 crore: HDFC or Standard Chartered
☑ Will you keep foreign currency?
- Yes: HDFC (6 currencies) or Standard Chartered (5 currencies)
- No: Any bank works
☑ Which city will you settle in?
- Tier-1 (Mumbai, Delhi, Bangalore): Any bank
- Tier-2/Tier-3: SBI mandatory, add one private bank
☑ How important is digital banking?
- Very important: ICICI or IDFC FIRST
- Somewhat important: HDFC or Axis
- Not important: SBI
☑ Do you want relationship manager support?
- Yes: HDFC or Standard Chartered
- No: ICICI or IDFC FIRST
☑ What's your age?
- Under 35: ICICI or IDFC FIRST
- 35-50: HDFC or Axis
- Above 50: HDFC or SBI
☑ Will you repatriate funds back abroad?
- Likely: ICICI (lowest forex markup) or GIFT City option
- Unlikely: Any bank
Also Read -How Interest is Taxed on NRI Accounts in India
My Recommendation Matrix
Best overall balance: HDFC Bank - Proven track record, complete offerings, good support
Best for digital experience: ICICI Bank - Superior app, online processes
Best for cost optimization: SBI - Lowest fees, massive reach
Best for rates: IDFC FIRST Bank - Highest RFC interest
Best for premium service: Standard Chartered - White-glove experience
Best for UAE residents: Axis Bank - Strong partnerships
Future-proof option: GIFT City via Belong - Tax-free forever, no conversion hassles
👉 Tip: Whatever bank you choose, open the account before you land in India. Many banks allow NRIs to initiate resident account opening while still abroad, reducing transition friction.
Common Banking Mistakes
I see these repeatedly:
Mistake 1: Choosing based on friend's recommendation without considering your own situation
Mistake 2: Opening only one bank account (always have backup)
Mistake 3: Not negotiating minimum balance waivers for first 6 months
Mistake 4: Accepting default forex rates without shopping around
Mistake 5: Ignoring digital banking quality (you'll regret during pandemic-style situations)
Mistake 6: Not reading fee schedules before opening accounts
Mistake 7: Converting all NRE funds to rupees immediately (use RFC accounts)
Mistake 8: Assuming relationship managers know everything (do your research)
Use our Compliance Compass to ensure you're meeting all requirements across your chosen bank.
Final Thoughts
The "best" bank doesn't exist.
What exists is the best bank for your specific situation.
ICICI serves the tech-savvy digital nomad perfectly. HDFC serves the established professional who values human relationships. SBI serves the cost-conscious returnee settling in tier-2 cities. Standard Chartered serves high-net-worth individuals wanting premium treatment.
Your choice should reflect your profile, priorities, and settlement plans.
Don't overcomplicate it. Pick based on your top 3 priorities. Test for 6 months. Adjust if needed.
And consider whether GIFT City alternatives might serve you better than traditional banking conversions.
Join Belong's WhatsApp Community where 900+ returning NRIs share real banking experiences and advice.
Download the Belong app to explore GIFT City options that might simplify your entire transition.
Welcome back to India. Choose your banking partner wisely.
Sources
GoINRI - Best NRE Bank Accounts 2025
BackToIndia - Top NRI Bank Accounts: RFC Account Mystery
CompareRemit - NRI Banking Services 2025 Guide
Policybazaar - Best NRE Savings Accounts for NRIs 2025
MostlyNRI - Top 5 NRE Savings Accounts 2025
NoBroker - Best NRI Accounts in India 2025
BankBazaar - RFC Fixed Deposit Interest Rates 2025
HDFC Bank - NRI Banking Services
Standard Chartered - RFC Account for Returning NRIs
Arthgyaan - RFC Accounts for Returning NRIs
Belong - NRI Account Charges Compared
Belong - NRI Account Fees & Charges Guide
ICICI Bank - NRI Banking Service Charges
Belong - Convert NRI Account to Resident Account
Arthgyaan - NRE and NRO Account Conversion Guide
GoINRI - Best NRE Bank Accounts 2025. https://www.goinri.com/blog/best-nre-bank-accounts
- BackToIndia - Top NRI Bank Accounts: RFC Account Mystery. https://backtoindia.com/top-nri-bank-accounts/personal-finance/
- CompareRemit - NRI Banking Services 2025 Guide. https://www.compareremit.com/money-transfer-tips/detailed-review-of-nri-banking-services/
- Policybazaar - Best NRE Savings Accounts for NRIs 2025. https://www.policybazaar.com/investment-plans/articles/best-nre-savings-account-for-nri/
- MostlyNRI - Top 5 NRE Savings Accounts 2025. https://mostlynri.com/best-nre-savings-accounts-for-nri-in-india/
- NoBroker - Best NRI Accounts in India 2025. https://www.nobroker.in/prophub/nris/nri-guides/best-nri-accounts-in-india/
- BankBazaar - RFC Fixed Deposit Interest Rates 2025. https://www.bankbazaar.com/fixed-deposit/rfc-fixed-deposit-rates.html
- HDFC Bank - NRI Banking Services. https://www.hdfcbank.com/nri-banking/save/nri-accounts
- Standard Chartered - RFC Account for Returning NRIs. https://www.sc.com/in/stories/nr-bank-ac-for-returning-nri/
- Arthgyaan - RFC Accounts for Returning NRIs. https://arthgyaan.com/blog/rfc-accounts-for-returning-nris.html
- Belong - NRI Account Charges Compared. https://getbelong.com/blog/nri-account/charges/
- Belong - NRI Account Fees & Charges Guide. https://getbelong.com/blog/nre-account/fees-charges/
- ICICI Bank - NRI Banking Service Charges. https://www.icicibank.com/nri-banking/rhstemp/service-charges
- Belong - Convert NRI Account to Resident Account. https://getbelong.com/blog/convert-nri-account-to-resident-account/
- Arthgyaan - NRE and NRO Account Conversion Guide. https://arthgyaan.com/blog/nre-nro-account-conversion-returning-nri.html
About the Author
Ankur Choudhary is an IIT Kanpur alumnus, SEBI-registered investment advisor, and CEO of Belong. Having personally navigated the complexities of returning to India after years abroad, Ankur has spent over 12 years helping NRIs choose the right banking partners and optimize their financial transitions.
Last Updated: November 21, 2025 Reading Time: 15 minutes Category: NRI Banking, Returning to India
