How to open a bank account in India
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1. I am based in Europe. How do I open a bank account in India?
If you are a resident of Europe, you cannot open a bank account in India. This is only possible for people such as Non-Resident Indians (NRIs), Person of Indian Origin (PIOs) and Overseas Citizens of India (OCIs). If you do not fall under any of these categories, you must be resident in India to open an account. You are considered resident in India if you have lived in India for more than 182 days during the previous financial year.
2. I am an expat and resident in India. How do I open a bank account in India?
Europeans who are staying in India for a longer period of time can open a so-called FA Resident Savings or Current Account with a bank in India, provided you have the necessary documents (see question 4).
3. How long does it take to open a bank account in India?
On average, it takes 3-5 working days provided all documents are attached.
4. What documents do I need to open a bank account in India?
An indicative list of documents that may be requested by the bank:
- A valid business or work visa
- Pan card
- A valid passport with photo and signature as an identity proof and proof of age
- Proof of address in the form of an electricity bill not older than two months. Some banks also accept a PAN card, an Aadhaar card or a letter from the embassy of the country of residence as proof of address.
5. How do I choose the right bank in India?
Consulting firm IndiaConnected can help you choose the right bank. When choosing a bank, we look at the following points for our clients:
- How big is the bank? Does the bank have branches all over India? Does the bank operate internationally?
- Can you do online banking with this bank?
- Does the bank offer a wide range of products that suit your needs?
- Does the bank have a dedicated relationship manager?
6. What are the charges for opening a bank account in India?
The fees vary from bank to bank and depend on the services chosen. Most bank accounts in India charge a monthly account fee. In addition, you are required to maintain a minimum balance in your account.
7. Can I open a Dollar/Euro bank account?
Yes, individuals or companies who receive foreign currency earnings and are residents in India can open an Exchange Earners Foreign Currency Account (EEFC) bank account.
8. What is the interest rate in India?
This varies per bank, but the current benchmark interest rate set by the Reserve bank of India (RBI) is 6,5%.
9. What can I do to minimize currency risk in India?
You can keep your capital in an EEFC account. You can also choose to enter into Forward Contract Booking (FCB) with your bank to avoid daily fluctuations in rates. FCB is a contract between you and the bank where you agree to exchange a certain amount of currency on a specific date in the future, at a pre-agreed exchange rate.
10. How do I repatriate money from India to the head office account in Europe?
To repatriate, you will need to complete the required repatriation forms and provide supporting documents. You can find out how to do this in our guide for CFOs in India.
