Bank Account: Once an NRI becomes a RI, he cannot operate his NRO/NRE/FCNR (B) accounts. He needs to inform to the bank about the change of status to resident Indian and needs to open a Resident Rupee Account. Account opening documents such as address proof, identity proof, photographs need to be submitted. A Resident Foreign Currency (RFC) account may be opened by a returning Indian to transfer balances from NRE /FCNR (B) accounts. This account can hold foreign currency and continue to receive funds in foreign currency from investments abroad.
Demat Account: Just like bank account, the returning NRI needs to inform change of status to the designated authorised dealer branch through which the investor had made investments in the Portfolio Investment Scheme, as well as the DP with whom he has opened a demat account. A new demat account with ‘Resident’ status needs to be opened. All the balances held in the NRI demat account shall be transferred to the new ‘Resident’ demat account. After transfer, the NRI demat account will get closed.
Trading Account: If the NRI was operating an online trading account, the broker also needs to be informed about the change. The trading account with NRI status will get closed and a new trading account with resident status needs to be opened.
Mutual Fund Investments: Respective AMC with whom the NRI holds mutual fund investments needs to be informed about the status change. KYC change form needs to be sent to the KYC registration agency for change of status, address and bank details. An acknowledgement shall be issued by the KYC registration agency on submission of request and will carry out the necessary changes in its records.
The most important aspects related to the bank accounts has been highlighted to enable an NRI returning home to understand the actions he need to undertake at the first basis to avoid any legal problem.
We hope that the effort at our end will help the returning NRIs get benefitted with genuine market tips which will help them save time searching for the info on the net as at times the bank dealing representatives are also clueless about the requirement for an NRI or a RI.