8 NRI banking tips - Personal finance tips for NRI accounts

While relocating abroad comes with excitement and opportunities, it also requires thoughtful financial planning in India. With evolving FEMA (Foreign Exchange Management Act) regulations and taxation rules, you must ensure compliance while protecting your wealth. By following the right measures, you can simplify asset management, secure your family’s financial needs, and enjoy seamless banking through trusted partners like IDFC FIRST Bank.

Tips for NRIs to handle their personal finances better
 

Here are eight measures you need to take to facilitate NRI banking before you book your flight:

1. Repurpose your bank account
 

If you have multiple bank accounts in India, it is best to consolidate your finances for ease of accounting and proper tax reporting. Just hold on to one or at least two bank accounts and convert them to an NRO (Non-Resident Ordinary) bank account. All income generated in India, such as rent, dividends, investment proceeds, etc., can be deposited into your NRI account.

Additionally, you may have to open an NRE account (Non-Resident External) if you have dependents in India to whom you wish to remit money or repatriate funds from investments. If you want to continue making new investments in India and don’t want to take currency conversion risk, invest in FCNR (Foreign Currency Non Resident) deposits. With IDFC FIRST Bank, you get comprehensive NRI banking solutions with a range of account options that suit your financial needs.

2. Consider letting go of your bank lockers
 

Bank lockers can be expensive to maintain. Most banks charge a hefty annual fee for lockers and expect customers to maintain a high account balance. Consider giving up these lockers unless you have no other option for storing jewellery, valuables, or important documents. If you need to retain a locker, choose a bank where you will be maintaining your NRI bank account.

3. Optimise your equity investments
 

As your status changes, you’ll need to redesignate your Demat account and follow FEMA rules. NRIs cannot trade equities the same way as resident Indians — instead, you’ll need a PoA, mandate holder, or RBI’s Portfolio Investment Scheme (PIS).

There are three ways to continue investing in Indian markets – appoint a mandate holder for your NRO/NRE account, give a Power of Attorney to a trusted contact to trade on your behalf, or sign up for RBI’s Portfolio Investment Scheme (PIS) through an eligible bank or broker. With IDFC FIRST Bank, you can setup these facilities online through net-banking or your relationship manager.

4. Redesignate your mutual funds
 

Choose to link your mutual funds with an NRO or NRE Account. For existing mutual fund investments, you will have to get a fresh KYC (Know Your Customer) done to reflect your non-resident status. You will also have to change the folios to ‘non-resident’ to link them to your NRI bank account.

Note: account of the Foreign Account Tax Compliance Act (FATCA) agreement between India and the US, a few domestic AMCs have discontinued mutual fund services to NRIs based out of US/Canada.

Here’s a quick comparison between equity and Mutual Fund investments for NRIs

5. Put a plan in place for realty management
 

Managing real estate assets from overseas require you to take care of maintenance charges, electricity/gas bills, property taxes, repairs and any ongoing mortgage. In case your property is rented out, a property management service (typically charging 3–7% of rent) can ease the process, many of them offering digital dashboards.

6. Set up auto-debit instructions for life insurance premiums
 

Life insurance plans are relatively easier to manage, and NRIs can even purchase new policies. Most life insurance companies even accept premium payments in foreign currency.   

In terms of managing insurance plans, consider the following:

• Set up standing instructions for premium payments.
• Consider limited premium-paying term plans for long-term convenience.
• Avoid surrendering policies as payouts are often lower than premiums paid.

7. Maintain your health insurance plan
 

Just as life insurance, health insurance plans require a strategy as well:

• Retain existing plans — especially useful if you plan short visits to India.
• Ongoing plans help bypass waiting periods for critical illness cover.
• Standing instructions ensure no missed payments.

8. Hire a tax advisor
 

If you hold multiple investments, a tax specialist with expertise in international taxation is crucial. They’ll help you comply with FEMA, double taxation treaties, and optimise liabilities across jurisdictions.

Conclusion
 

Managing your finances in India as an NRI need not be overwhelming. With structured planning and the right banking partner, you can efficiently oversee investments, insurance, and real estate while abroad. With IDFC FIRST Bank tailored NRI solutions - from account management to remittances and investment options - you stay financially secure and compliant.