If you are working abroad and you have a lot of difficulty transferring money to your Indian bank account, then you can easily solve this problem. To overcome this problem, the Indian bank provides the facility of NRE account i.e. Non-Resident External Account. Let us tell you how this account can facilitate you.
What is an NRE account?
NRE account is not like a normal bank account and the laws related to it are also different. These are different types of accounts and different types of tax have to be paid on them. According to Chandrakant Bhat, founder of NRI Money Clinic, using an ordinary savings account in India can lead to heavy penalties. If you are going abroad for an indefinite period, you need to inform your bank about the same and request for conversion of your bank account to an NRE account.
From a foreign bank account in a developed country like US, UK and Canada, you can make a SWIFT transfer to an NRE account you have. Let us tell you that SWIFT is a messaging network and it is used by banks to transfer money fast.
Reason to transfer money to the NRE account?
According to finance expert CA Swaraj Jain, sending money with the help of an NRE account is a good way. It is a legal way through which an NRI can send money to his home country. With the help of an NRE account, you can manage all types of investments.
Along with this, this account allows you to withdraw the entire amount as and when required. Apart from this, you can keep an NRO account to save income in Indian currency. You do not even need any documents for the money sent as family expenses. You can also deposit foreign currency brought to India during your travels in an NRI account.
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