my daughter is working with AIG , London since Jan '2022. Now that she has become NRI , is she required to close all her existing savings account and open new NRE and NRO account. Also she has some personal loan so if those accounts are closed , how will she repay loan.
Ans: As your daughter has become an NRI, there are some changes she needs to make to her banking and financial accounts in India. I'll break down the steps she needs to take and address your concerns.
Savings Account: Your daughter should inform her bank about her change in residential status and convert her existing savings account to an NRO (Non-Resident Ordinary) account. This will allow her to manage her income from sources within India, such as rent or interest.
NRE Account: It is advisable for her to open an NRE (Non-Resident External) account, which will allow her to repatriate funds back to India in Indian Rupees. This account is particularly useful for transferring her salary or other income earned in foreign currency.
Personal Loan Repayment: Since her existing savings account will be converted to an NRO account, she can continue to repay her personal loan using this account. The loan repayment process should not be affected by the change in her residential status.
Please note that these are general recommendations, and your daughter should consult with her bank and a tax professional to ensure she complies with all regulations and reporting requirements for NRIs.
