Your To-Do List
Here is the list of some financial matters you must take care of before you move abroad:
- You need to change your savings account type to non-resident ordinary (NRO account)
- You should open a non-resident external (NRE) account to send money to India
- You can use your NRE or NRO accounts to repay existing loans
- You may want to continue your medical coverage since it can be useful during your future trips to India
- You should think about your term plans and what all geographies they cover
- You may not be able to invest in all sorts of financial instruments freely as an NRI. check these details so you can plan your move accordingly
- You may want to open a portfolio investment scheme (PIS) to invest in stocks
- Make sure to speak with tax experts to understand if there any special tax rules for the NRIs so that you can file your taxes correctly before your move
5 Banking Tips to Help with Your Move
While the thought and responsibilities of moving to a new place is daunting, your bank should be able to make things easier and more straightforward by providing you the necessary information and services. You can check out Standard Chartered’s NRI products
and solutions that will help you avail services customised to your financial needs as a Global Indian.
- Change Your Savings Account Type
You would be changing your residency status from resident to non-resident Indian. As a result, you need to change your existing savings account to NRO account and you can open an NRE account1:
- Non-resident (ordinary) account (NRO): This account will enable you to hold the income from India
- Non-resident ‘external’ rupee account (NRE): This account will allow you to access your savings in Indian Rupees when you are in another country in the future; you can convert the funds to foreign currency when you are abroad
2. Manage Your Investments & Property in India
When you become an NRI, you can purchase shares or convertible debenture of an Indian Company through stock exchanges, under the portfolio investment scheme on repatriation basis.
For this purpose, you have to apply to a designated branch of a bank, which deals in Portfolio Investment. You can open a PIS account with Standard Chartered Bank.2
You can continue to hold the securities which you had purchased as a resident Indian, even after they have become a non – resident Indian, on a non-repatriable basis.3
In case you have property in India, you can choose to liquidate it if that suits your future financial interests. However, there is no hard-and-fast rule about holding or selling real estate once you have your NRI status. You can hand the Power of Attorney (PoA) to an Indian resident you trust to manage your investments, property and insurance.
3. Update Your KYC
When you are moving to another country, you need to update your KYC (Know Your Customer) status. It links every financial product you hold including bank accounts, insurance policies, and mutual funds. Once you change your place of residence, your address, and residency status change, it is imperative to update the status of your KYC to continue enjoying the baking services and insurance covers you have right now.
4. Evaluate Your Insurance Covers
Before your status changes to NRI, you need to find out the details of your health insurance policy. What kind of coverage does it provide outside the country?
Find out what kind of cover your health insurance provider is giving you. Also, find out if you can upgrade it to suit you and your family’s needs abroad. Cover size is important. So evaluate the cover and increase it before you make a move.
It is imperative that you read the T&Cs of Term the policy carefully before moving to check if they cover you in all parts of the world and the country you are moving to specifically. You might want to meet with the representatives to go over the details of the coverage and submit additional paperwork before changing your Residency status.
5. Manage Your Existing Debts & Tax Payments
Before moving your current lines of credit, pending tax payments should be taken care of. Do not let your loans and tax payments be impediments in your way to a better life. If you have open lines of credit after moving, ensure timely payments. In case you have income-generated property or assets in the country, you will have to pay income taxes as per the Indian IT laws.
Do you have multiple credit cards that you use while shopping, dining and paying for other amenities in India? Do they provide lucrative offers for shopping abroad? If your existing credit card does not give attractive offers for NRIs, you can trade them for cards that offer accelerated reward points for shopping in specific countries, and lucrative rewards on all travel spend in India.
Making a list of all the tasks you need to complete before leaving will help you to plan ahead in time. At a glance, moving abroad may seem overwhelming, but thanks to smart banking services, online customer services and expert guides, it is possible to complete the needful before you leave the country.
Please check out Standard Chartered’s NRI products and solutions to customise your financial needs as a Global Indian.
- https://www.nseindia.com/content/members/faq_NRI_TA.pdf, https://rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=9006#s215