Can A Foreign Tourist Open A Bank Account In India?

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There are many foreigners who visit India, typically those that are tourist. And, if a foreign tourist is visiting the entire country, chances are bright that his or her stay could be prolonged.

Can A Foreign Tourist Open A Bank Account In India?
If it is so, then it would be handy for such a foreign tourist to open a bank account in India. But, the question that arises is: Is a foreign tourist allowed to open an account in India. The answer is "yes".

The Reserve Bank of India (RBI) has permitted tourists to open bank accounts in India, subject to certain guidelines.

For example, these accounts cannot be opened for more than six months. Here are a few other guidelines that foreign tourists should note before opening a bank account in India.

1) Documents that are needed

Foreign tourists would need a passport and a valid visa to open such accounts. The authorized dealer could provide more such information on the other norms.

2) What types of account can be opened?

Only NRE and NRO accounts can be opened by foreign tourists in banks in India. To read more on what is a NRE and NRO account click here

3) How can the accounts be used?

The accounts can be used to make payments, including all local obligations. Amounts in excess of Rs 50,000 would need to be made by a cheque.

4) Can foreign tourist repatriate the money?

Foreign tourist can easily repatriate the money through any authorized dealer by converting the same into foreign currency.

5) What happens to the balance in the account for more than 6 months?

As mentioned earlier a bank account can be opened only for a period of 6 months. If the account is for more than 6 months, than the tourist can make an application on plain paper to the Reserve Bank of India to transfer the same to a foreign currency and remit the same abroad.

Conclusion

A foreign tourist should probably seek all the guidance from the bank or an authorized dealer as regards guidelines that govern the opening and closing of such account. The Reserve Bank of India may change the norms from time to time and tourists should keep themselves abreast of the latest.

GoodReturns.in

Read more about: nre, nro, foreign tourist
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