1. I am based in Europe. How do I open a bank account in India?
If you are a resident of Europe, you cannot open a bank account in India. This is possible only for people of Indian origin, such as Non-Resident Indians (NRIs), Person of Indian Origin (PIOs) and Overseas Citizens of India (OCIs). If you do not fall under any of these categories, you must be resident in India to open an account. You are resident in India if you have lived in India for more than 182 days during the previous fiscal year.
2. I am an expatriate living in India. How do I open a bank account in India?
Europeans who are long-term residents in India can open a so-called FA Resident Savings or Current Account with a bank in India, provided they provide the necessary documents (see under question 4).
3. How long does it take to open a bank account in India?
On average, it takes 3-5 working days if all documents are enclosed.
4. What documents do I need to open a bank account in India?
Indicative list of documents that may be requested by the bank:
Valid business or work visa
Pan card
Valid passport with photograph and signature as proof of identity and age
Proof of address in the form of an electricity bill not older than two months. Some banks also accept a PAN card, an Aadahaar card or a letter from the embassy of the country of residence as proof of address.
5. How do I choose the right bank in India?
Consultancy firm IndiaConnected can help you choose the right bank. While choosing the bank, we pay attention to the following points for our customers:
How big is the bank? Does the bank have branches all over India? Is the bank internationally active?
Can you bank online with this bank?
Does the bank offer a wide range of products to suit your needs?
Does the bank have a dedicated relationship manager?
6. What is the cost of opening the bank account in India?
Fees vary from bank to bank and depend on the services chosen. Most bank accounts in India charge a monthly account fee. In addition, you are required to maintain a minimum balance in your account.
7. Can I open a Dollar/Euro bank account?
Yes, individuals or companies receiving foreign currency income and residing in India can open a so-called Exchange Earners Foreign Currency Account (EEFC) bank account.
8. What is the interest rate in India?
This varies depending on the policy of the bank concerned, compare the current interest rates here.
9. What can I do to minimise currency risk in India?
You can hold your capital in an EEFC account. You can also choose to enter into Forward Contract Booking (FCB) with your bank to avoid daily rate fluctuations. FCB is a contract between you and the bank whereby you agree to exchange a specified amount of currency at a pre-agreed exchange rate on a specific date in the future.
10. How do I repatriate money from India to the head office account in Europe?
To repatriate, you must complete the required repatriation forms and provide supporting documents. How to do this smartly can be found in our guide for CFOs in India.