UAE NRIs: Returning to India? Here’s when you should close your non-resident bank accounts

UAE NRIs: Returning to India? Here’s when you should close your non-resident bank accounts

Dubai: When Indian expats move back to their home country, there are a number of norms to keep in mind ahead of resuming your routine financial undertakings. In order to continue transacting back home, there have often been queries among Non-Resident Indians (NRIs) surrounding their non-resident bank accounts, particularly their NRE accounts. “As per Indian norms (FEMA or Foreign Exchange Management Act), the moment you go back to India with an intention of not coming back, you should inform the relevant banks and re-designate the NRE account to normal resident account,” said Dixit Jain, Managing Director at The Tax Experts DMCC, a Dubai-based tax advisory firm. Technically speaking, you become a resident Indian on the day you return. This is why you can no longer maintain NRI bank accounts or avail the tax-related benefits on NRI investments and why you should convert or re-designate or close your NRE account after the return, on a priority basis. If you fail to convert your NRE account within three months of the return, Jain added that it will be considered as a violation of Foreign Exchange Management Act (FEMA) and can possibly attract a penalty. As an NRI, let’s say you decide to