What is the difference between NRI and NRE?

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What is the difference between NRI and NRE?

Nilesh

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April 25, 2022

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Narayandas · Answer 1 · 2022-04-25T16:37:08+00:00

Hi, If I understand it correctly, you want to know the difference between NRI and NRE Accounts. If that’s the case, I can help you out. I have a cousin in Dubai and we were having this discussion about which account is better NRI or NRE. I will let you in on what we discussed and I hope that it will help you arrive at a decision yourself. NRI and NRE Difference Before telling you about both the accounts, let me tell you the NRI and NRE full forms. NRI is Non-Resident Indian account and NRE is Non-Resident External account. Here is a table to explain difference between NRI and NRE quickly:

NRI Account	NRE Account
To open NRI account the person should at least be outside of India for 120 days in a particular year	NRE Account is a part of NRI accounts. This account accepts income from the current country of residence
Such account opener should have resided in India for less than 365 days for the past 4 years combined	Only income denominated in Indian rupees is accepted in NRE Account
There are three accounts that come under NRI account - NRE Account, NRO account and FCNR account (NRE: Non Resident External, NRO: Non Resident Ordinary, FCNR: Foreign Currency Non-Residential Account)	NRE Account allows foreign currency transfer but the balance is held in Indian Rupees
Documents to be submitted: Employment proof Visa permit, student visa, employment visa, residence visa, or work permit. Photocopy of the information page of the passport. Bank application form KYC document (optional)	The amount deposited is tax free and the account holder is eligible to earn 4.35% interest on deposit amount annually

I hope this clarifies all your doubts about the difference between NRI and NRE accounts. Looking for home loan facilities back in India? NoBroker Home Loan services is here to assist you. Struggling to manage your property in India? Let NoBroker handle it for you Read more: Who can open NRE account How to get home loan for NRI in India Do NRI pay tax in India

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What is the difference between NRI and NRE?

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