If you are an NRI based in the UAE and want to earn good returns by opening a fixed deposit (FD) back in India, the welcome news is that yes, you can open FDs online with Indian banks from overseas. In fact, more and more Non-Resident Indians are doing so. Inflows into NRI bank accounts jumped by 42.8% to $13.33 billion between April and December 2024. (Source: ET)
This blog will guide you through all you should know - from eligibility and documents required to types of NRI accounts (NRE, NRO) , the online step-by-step process, the important features such as interest rates and taxation, and any differences between banks. We'll keep it simple, approachable, and free of jargon so you can book your NRI FD with ease.
Brief Overview of NRE, NRO, FCNR and GIFT City Accounts
Before diving into the process, it’s important to choose the right account type for your needs. An NRE account is meant for your foreign income earned outside India (such as your UAE salary), and the deposits (and interest) in an NRE (Non-Resident External) Account are fully repatriable (transferable back abroad) and tax-free in India.
On the other hand, an NRO (Non-Resident Ordinary) Account is for the income earned in India (rental income, pension, etc.), and although you can deposit local as well as foreign currency into an NRO account, the interest accrued is taxable in India, and the principal has repatriation restrictions. Fund transfer from NRO savings account to NRE FD would be permitted under the $1 million scheme, which is available to NRIs per financial year. Both NRE and NRO accounts can be maintained as savings accounts or term deposits (FDs) as required.
FCNR (Foreign Currency Non-Resident) Account is another attractive option for NRIs who want to hold their deposits in foreign currencies like USD, GBP, or EUR. FCNR accounts are entirely repatriable and also tax-free in India. The primary advantage of FCNR is that it shields your deposits from currency fluctuations, as the funds are maintained in foreign currency.
GIFT City bank accounts are located in GIFT City, which is India’s financial service SEZ. These accounts are treated as foreign bank accounts and offer deposits in international currencies. They are similar to FCNR deposits except that they are also available for shorter tenures.
Eligibility for NRIs to Open FDs in India
Who can open an NRI Fixed Deposit?
Generally, any Non-Resident Indian (NRI) or Person of Indian Origin (PIO/OCI) is eligible to open NRI bank accounts and FDs in India. This includes Indians residing in the UAE for work or business, as well as overseas citizens of Indian origin.
If you fall under this category, you can open specialised NRI accounts in Indian banks.
Bank Account Requirement
To open a fixed deposit in India as an NRI, you will first need an NRI bank account (either NRE or NRO) with a bank. Indian banks require you to have an NRE/NRO savings account before creating an FD.
For example, SBI recently launched online process via its YONO app to open NRE/NRO accounts. You can fill in your details in the YONO app and later visit the branch for document verification or courier your notarised KYC documents.
For the GIFT City FD, you will need to open the account using the bank’s website. You can do the KYC with the necessary documents, notarise them in your embassy and courier them to the bank branch.
Joint Account Eligibility
You can hold NRI FDs individually or jointly. Joint holding is allowed with other NRIs, and some banks even permit joint accounts with a resident relative (on a “former or survivor” basis). This means you could add a close Indian relative as a joint holder for convenience, though only the NRI primary holder can operate the account in such cases.
If you plan to add a nominee or joint holder, ensure they meet the bank’s eligibility rules (for instance, a resident joint holder must be a close relative as defined by RBI).
Documents Required to Open an NRI FD Account
Opening an NRI FD online is convenient, but it does require submitting the proper documentation during the account opening stage.
- Passport: Copy of your valid passport. Ensure the copy is self-attested (signed by you). If applying from the UAE, many banks require this to be attested by a notary, Indian Embassy/Consulate, or your bank abroad for verification.
- Visa or Resident Permit: Proof of your NRI status, such as a valid residence visa/work permit in the UAE
- Photograph: Recent passport-sized colour photograph for the bank’s records.
- Overseas and Indian Address Proof: You’ll need to provide proof of your address abroad and a permanent/Indian address (if any) as per KYC norms. Acceptable documents include utility bills, tenancy contracts, Emirates ID (for UAE address), or Indian Aadhaar, voter ID, etc., for an Indian address.
- PAN Card (Permanent Account Number): A PAN card copy is required for any financial account in India. If you don’t have a PAN, you may fill out Form 60. Having a PAN is advised because tax is deducted on NRO interest; without a PAN, the TDS rate may be higher.
- Additional documents for PIO/OCI: If you are of Indian origin but not an Indian citizen, banks may ask for your OCI or PIO card and a signed declaration of Indian origin
- Initial Funding Proof: While not a document per se, note that the first funding of your NRE/NRO account must come from your own funds abroad (remittance from your foreign bank, or a foreign currency draft). For example, you can wire transfer money from your UAE bank to your new NRE account. This step is needed to activate the account.
After the bank verifies your documents and opens your NRE/NRO savings account, you’re ready to create FDs online.
Step-by-Step Guide: How to Open an NRI Fixed Deposit Online (from UAE)
Opening a fixed deposit online as an NRI is quite straightforward once your NRE/NRO account is active. You can do it from the comfort of your home in the UAE. Here’s a step-by-step guide to creating an NRI FD online:
Step 1 - Open an NRE/NRO Account (if not already)
If you haven’t yet, start by applying for an NRE or NRO savings account with your chosen bank. Some banks let you apply online in the first step.
There is limited availability of digital KYC depending on the bank. Fill out the online form, and upload documents (passport, visa, etc.). The bank representative will get in touch with you. You might be required to travel to the bank branch or courier your KYC documents to the branch.
Once the bank approves and opens your account, you will receive the account details and an internet banking login.
The GIFT City bank account opening process is also similar to this process of opening a NRE/NRO account.
Step 2 - Fund your NRI Account
Next, remit the amount you want to deposit into your new NRE/NRO account. For example, do an online transfer from your UAE bank via a remittance exchange or wire transfer into your NRE account (the bank will give you instructions for an inward remittance). If it’s an NRO account, you can also deposit any rupee funds you have in India. Ensure the money has arrived and is credited to your account. For GIFT City FD, funds can be sent directly in foreign currency (like USD or GBP) from your foreign bank account directly.
Step 3 - Log in to Online Banking
Using the credentials provided, log in to the bank’s internet banking platform or mobile banking app. All major Indian banks have NRI-friendly online portals. SBI has OnlineSBI and YONO app, and ICICI has Internet Banking and iMobile app.
Step 4 - Navigate to Open Fixed Deposit
Once logged in, find the option for opening a new fixed deposit. This is usually under a menu like “Deposits” or “Term Deposits.” For GIFT City FD, you might see it listed separately under international banking or IFSC options.
Step 5 - Choose Account Type (NRE/NRO/FCNR/GIFT City)
The system will ask which account or funds to use. If you have both NRE and NRO savings accounts, select the one from which you want to fund the FD. For an NRE FD, select your NRE account; for an NRO FD, select NRO account. If opening an FCNR, you might see an option to choose the currency and the source of funds. For GIFT City FD, you will have options to select the currency (USD, GBP, EUR) and the tenure.
Step 6 - Enter Deposit Details
Amount: Input the amount you wish to deposit. Remember, many banks have a minimum for NRI FDs (often around ₹25,000 for INR FD or a few thousand units for FCNR in foreign currency). Ensure you have a sufficient balance in your account.
Tenure: Select the tenure (duration) of the FD. The interface may offer options in days, months, or years. For NRE/FCNR, you’ll only see eligible tenures (≥12 months). For NRO, you could choose even short tenures like 30 days, 90 days, etc., or longer up to 10 years. GIFT City FD often allows flexible tenures like 1 year, 2 years, or 5 years with high interest rates.
Interest Payout Option: Decide how you want interest handled. Here are a few options:
Reinvestment (cumulative): Interest gets added to the principal and paid at maturity (common for FDs).
Periodic payout: Interest is paid to your savings account monthly or quarterly. (Periodic payout might be more common for NRO FDs or if you want regular income; NRE FDs are often left cumulative since interest is tax-free).
Maturity Instructions: Choose what happens on maturity – auto-renew the FD for the same term, or credit to your account. You can usually set auto-renewal if you want the FD to continue until you actively break it.
FCNR specifics: If opening FCNR, you’ll additionally select the currency (USD, GBP, etc.) and may need to specify if the funds should be converted from your INR account or are coming via a remittance in that currency. GIFT City FD also follows the same process.
Step 7 - Submit and Create FD
Hit the “Confirm” or “Open FD” button. The system will process your request. In most cases, the FD is created instantly online, and you will get a confirmation number or receipt on screen or by email/SMS. The principal amount will be debited from your account and locked into the FD.
Want to know which NRI FD is best for you? You can read this blog for a detailed comparison of NRE, NRO, FCNR and GIFT City FDs
Step 8 - Note the FD Receipt
You can download or screenshot the FD confirmation, which contains details like FD number, amount, interest rate, and maturity value/date. Many banks also provide an FD advice/receipt PDF in the net banking, which you can save for your records.
Note: Keep NRE/NRO funds separate; remember, you cannot mix NRE and NRO funds. If you try to open an NRE FD, the funds must come from NRE balances (external money). NRO FDs will use NRO funds. Banks won’t let you directly transfer from NRO savings to create an NRE FD without formalities because that counts as repatriation conversion (subject to limits).
Not sure if you're eligible to invest in Indian FDs from abroad?
Use our NRI Compliance Pass to verify your investment eligibility under FEMA rules.
As an NRI in the UAE, opening and managing fixed deposits can be easy or time taking depending on whether you have a bank account (NRE/NRO/FCNR/GIFT City) in India. Through your FDs, you can enjoy high interest rates, flexible tenures, safe, and guaranteed returns on your money.
