NRIWallah team
Updated September 2026
Moving abroad changes your relationship with your Indian bank on the day you become an NRI. The resident savings account you have had for years can’t stay as it is, and the money you send home from now on belongs in a different kind of account from the money you earn in India.
Most NRIs end up with two Indian accounts and one local one. This page covers which is which.
NRE and NRO: the two accounts
An NRE account (Non-Resident External) is for money you earn abroad and bring into India. It is held in rupees, the interest is free of Indian tax, and both the money and the interest can be sent back abroad whenever you like. It suits savings you want to park in India, money for family expenses, and funds you plan to invest in Indian markets.
An NRO account (Non-Resident Ordinary) is for money that arises in India: rent, pension, dividends, the proceeds of selling property. Your old resident savings account becomes one of these. Interest is taxable in India, and the bank deducts tax at 30% plus cess before you see it, although a double-taxation treaty can often bring the rate down. You can send up to USD 1 million a financial year abroad from NRO balances, once the tax paperwork is done.
| NRE | NRO | |
|---|---|---|
| Money that goes in | Earned outside India | Earned in India |
| Interest in India | Tax-free | Taxed, 30% TDS plus cess |
| Sending it back abroad | Freely | Up to USD 1 million a year |
| Joint holder | Another NRI, or a resident close relative on a “former or survivor” basis | Another NRI or a resident |
If you have income in India and also send money home, you need both. Rates on NRE fixed deposits are on our FD rates page .
The first things to do
Tell your bank you have become an NRI and have your savings account converted to NRO. This is a FEMA requirement, not a choice, and it is simplest to do before you leave or soon after.
Open an NRE account for the money you will send home, and fund it from your salary abroad. Keep the remittance receipts: both countries’ tax authorities can ask for them.
UPI can work on an NRE or NRO account with an international mobile number in several countries, including the UK and US, but support varies by bank. Check with yours before you rely on it.
Getting banked in the UK
App-based banks are the quickest start for a new arrival. Monzo and Starling open in their apps with a passport or residence permit, a selfie and a UK address, and a temporary address usually works. Starling also offers joint accounts. Revolut is useful if you hold several currencies.
Barclays, Lloyds and NatWest usually want proof of address, so they are easier once you have a tenancy agreement.
ICICI Bank UK and SBI UK are British banks owned by Indian ones. If you already bank with either in India, linking your UK and NRE or NRO accounts is simpler.
Once the accounts are open, compare what providers charge before you send money to India , and see our NRI investment guide for what to do with savings once they arrive.
