Joint Accounts with Resident Family: Rules for NRIs and Foreign Citizens

New Delhi [India], February 23: Moving abroad changes your relationship with India and the way you manage your finances. You can still access and manage funds in your home country as a Non-Resident Indian (NRI), but subject to specific rules. So, if you’re considering adding a resident family member to your account in India, you may want to understand the regulations for the same. Read ahead to learn about the requirements, processes, and limitations to managing your finances wisely.

RBI regulations for NRI joint account holding

You can choose one resident account holder to add to your NRI account. Their rights are functional, on a ‘Former or Survivor’ basis. This means you hold the right to operate the account as the primary account holder. The resident co-holder can access the account only in case of your demise.

If you wish to authorise a joint operation with a resident Indian while you reside overseas, you can go the Power of Attorney (PoA) route. This is a legal document that lets a trusted resident Indian to manage your NRI accounts on your behalf.

Types of NRI accounts with the joint account permit  

You can open these NRI accounts in India from trusted financial institutions like IDFC FIRST Bank and add an eligible resident Indian as a joint account holder:

• NRO account

An NRO (Non-Resident Ordinary) savings account is a rupee-dominated bank account that you maintain to manage Indian income from rent, pensions, dividends, and other such proceeds. The interest earned on this bank account is taxable in India. You can repatriate funds to your overseas account, but up to USD 1 million in a financial year.

• NRE account

NRE (Non-Resident External) accounts let you manage your foreign income in India. The income deposited in foreign currency is converted to INR for easy maintenance. The balance you maintain in the account is fully repatriable, and the interest earned on it is tax-free.

• FCNR account 

Unlike NRO and NRE, FCNR (Foreign Currency Non-Resident) is a fixed deposit that you maintain in foreign currency. There is no conversion. It is maintained as received, and most banks accept all major currencies like USD, Euro, etc. The interest earned on this account is tax-free provided the residential status of person is either Non-Resident or Resident but non ordinarily Resident only as per the provisions of income tax act, and the funds are freely repatriable.

Documentation for NRI joint account application

You will need minimal documents when you choose IDFC FIRST Bank to get through the NRI joint account opening process:

As a primary account holder, you need:

• Accurate personal details in the NRI account opening form.
• Valid identity proof like Passport.
• Valid Non-Resident Proof like VISA/Resident Permit.
• Overseas address proof like utility bills, bank statements, rental agreement, etc.
• Valid Tax Identification Number (TIN) of current country of Tax residence.

For the resident joint account holder:

• Identity proof like Passport/Driver’s Licence/Voter ID/Letter issued by the National population register.

Process to set up an NRI joint account

You can open an NRI savings account with resident joint account holder  just like you would a regular resident account. The process involves the following steps:

1. Choose your preferred bank: Compare features like high interest, dedicated relationship manager, etc., from banks like IDFC FIRST Bank to make an informed selection.
2. Select type of account: You can choose the account type you want to start with by understanding the features and your immediate needs for fund management.
3. Fill in the account opening form: Fill in your basic details and select the option to add a joint holder and provide their name, contact, and address information.
4. Upload documents: Submit the required documents – Identity Proof, Non-Resident Proof and Address Proof for the main account holder.
5. Submit Declaration: When resident Indian is being added in the account as a joint holder a declaration confirming the relationship with the account holder is required to be submitted mandatorily.
6. Complete verification and activate account: Once your details are verified, the bank will send you the confirmation message, and you can often activate your account right away to start using it swiftly.

Final words 

Joint NRI account opening allows you to assign a nominee to your account for management of your finances after your demise. Power of attorney is one more way of assigning rights to operate your accounts in India. In this case, you must assign a close relative with appropriate documents. Both modes involve simple steps. Banks simplify the process through a dedicated relationship manager to guide you through the rules.

Disclaimer

Please note that the information provided in this article is strictly based on the provisions of the Income-tax Act, 1961. It does not reflect the amendments or provisions introduced under the newly enacted Income-tax Act, 2025, which will come into effect from 1 April 2026.

Readers are strongly advised to consult their professional Tax Advisor to obtain accurate guidance tailored to their specific circumstances and to ensure proper interpretation and applicability of the relevant tax laws.