When individuals travel abroad, they mostly travel with the purpose to study and settle abroad. This is an ideally the best way to earn and send money back home to the family. With several different types of NRI accounts and NRI investment options, families back home are now financially stable. In this article, we give you the benefits of this type of NRI banking that will help the applicants family.
Conducting any banking transactions from two different countries is not an easy concept. However, with NRI Banking, this process has become easier. There are several kinds of NRIaccounts that allow joint account holders; both residential as well as other NRI can have access to this account. This makes transferring of funds easier, especially when there is an involvement of tax charges, currency conversions and interest rates involved. Transferring from one type of this account to another is also a crucial process, but it is now made user friendly. NRIs can now easily transfer funds from an international bank to a local bank in a matter of few hours as compared to days in the previous methods. The service charges used to be high, but now, it is almost free.
Advantage of conversion rates
During the process of transferring of funds or investing in other options, there used to be a high loss due to the conversion rates. This posed a problem, especially for those who would want to remit or invest on a monthly process. Thus in order to prevent these conversion rates from affecting special NRI account andNRI investment options were created to protect the interest of such transferring of funds. These accounts and investment options allow the conversion of currencies on a fixed value at a particular time. Therefore, if the conversion rates are high, you will be at a benefit. There are certain government restrictions when transferring funds within certain accounts that must be kept in mind.
Form of foreign investment
Certain government regulations prevent the investing of foreign funds in local projects. However, NRI Banking has allowed certain kinds of NRI investment options like investing in a self-occupied house or even local companies where one can buy or sell stocks passively on the stock markets. These options were created to ensure that these individuals can use their foreign earnings to invest in various selected projects back home, after which, when a certain period of time passes by, they can eventually return to their home country and settle down.
Since most of these individuals travel abroad to earn and remit to their families in the home country, banking institutes are trying to make this process as easier as possible. With the new rules and regulations, banking facilities for NRI is proven to be more beneficial to their families now.