There are many foreign nationals, who come to work or for various other purposes in India.
These Nationals, if they are employed would definitely need to open and operate through a bank account.
Foreign nationals are permitted to open resident account
Such foreign nationals are permitted to open an ordinary savings account, as many residents in India do.
In fact, even foreign tourists on a short visit to India can open an account. But, you must understand the difference here.
A foreign national who comes on a visit can open only a NRO account, while a foreign national resident in India, can open a resident account as well. So, this will operate just like any other domestic account.
However, one needs to be careful on the likely procedure that would be followed for repatriation.
Money in the NRE account can be repatriated freely, while in the case of NRO certain terms might need to be fulfilled.
So, although you may be allowed to open a resident account, foreign nationals must also understand the implications and whether they are allowed to freely repatriate from a resident account or whether specific permission is needed for the purpose.
A NRE account would be of little use to them, given the fact that they would be receiving money in India. For an NRE account the credit has to happen from abroad or from another NRE account.
In any case, it would be good if the foreign national checks on the type of account. One thing is clear though that according to the present provisions he or she can open a bank account.
This is as per the current provisions of the Foreign Exchange Management (Deposit) Regulations, 2000.
However, one needs to check with the bank or a authorized dealer and seek advise on the kind of account that maybe useful for the purpose.