Do we need a PIO or OCI for Indian bank transactions?

[klal]

Hope someone can throw some light on this. We have some old bank accounts in India which we would like to close on our next visit to India. Trouble is when the accounts had been opened, we were Indian citizens and now we are British. My query is: will the Indian bank permit us to operate/transact on our accounts or will they insist we can do so only if we have OCI/PIO Card?

Grateful for any pointers.

[shajacksha]

Hi

If they are local accounts then you are not allowed operate. This is also true for Indian Citizens who are NRI. Nri and OCI or pio card holders are only allowed NRI accounts as long as they remain NRI. If they become resident of india, they are then allowed to operate local accounts. But you should be able to close it if that is what you wanted to do. But many people do operate their accounts which is against the law. Some people go as far as buying an agricultural land since NRI are not allowed to buy agri land.

[klal]

Thanks for the reply. Yes, we may want to close the accounts. Of course, there surely must be the option to convert the existing accounts into NRI and keep them live.

Hi

If they are local accounts then you are not allowed operate. This is also true for Indian Citizens who are NRI. Nri and OCI or pio card holders are only allowed NRI accounts as long as they remain NRI. If they become resident of india, they are then allowed to operate local accounts. But you should be able to close it if that is what you wanted to do. But many people do operate their accounts which is against the law. Some people go as far as buying an agricultural land since NRI are not allowed to buy agri land.

[shajacksha]

Thanks for the reply. Yes, we may want to close the accounts. Of course, there surely must be the option to convert the existing accounts into NRI and keep them live.

I don't think that is option. This will mean you can repatriate the money abroad. I tried once and failed. Not sure it is possible now. I think you can convert to NRO. Best to give a call to your local branch manager

[klal]

Since the accounts were funded locally, they are non-repatriable. I do think there are circumstances in which you can repatriate even those funds - need to study RBI's rules though.

So far, this is what I've found:

"NRI/PIO may remit from the balances held in NRO account an amount not exceeding USD one million per financial year, subject to payment of applicable taxes"

For more details:

http://www.rbi.org.in/scripts/FAQView.aspx?Id=52#F2

Thanks for the reply. Yes, we may want to close the accounts. Of course, there surely must be the option to convert the existing accounts into NRI and keep them live.

I don't think that is option. This will mean you can repatriate the money abroad. I tried once and failed. Not sure it is possible now. I think you can convert to NRO. Best to give a call to your local branch manager

[skyepark]

i have oci and had local ruppee accounts since I worked there and this is fine.