I’m currently living in the USA and planning to open an NRI account with Union Bank of India. I already have an old savings account with Union Bank that I opened when I was living in India, so I’m also trying to understand whether I need to convert that account to an NRO account or open a completely new NRI account.
I’m mainly confused about the eligibility and documents required for a Union Bank NRI account.
From what I understand, there are different options such as NRE and NRO accounts. I receive my salary in the US, but I also have some income in India from a property. So I’m wondering whether I should have an NRE account for overseas earnings and an NRO account for Indian income.
For documentation, I have my US passport, US residence/visa documents, Indian address proof, overseas address proof, and PAN card. I also have my old Union Bank account details.
Has anyone recently opened a Union Bank NRE or NRO account from the USA?
A few questions:
I’d especially appreciate experiences from people who opened their account recently because I know bank documentation requirements can change.
I went with an NRE account because most of my income is earned outside India.
The distinction between NRE and NRO was the part that confused me initially. I was thinking they were basically two names for the same NRI savings account, but they're used differently.
My understanding is:
NRE: mainly for foreign earnings/remittances that you want to maintain in India in rupees.
NRO: mainly for income or funds connected with India, such as rent, pension, dividends or other legitimate Indian income.
Union Bank currently lists NRIs, PIOs and OCIs as eligible for NRE accounts. It also says NRE principal and interest are freely repatriable, while NRO funds are subject to the applicable repatriation rules.
For documentation, don't assume that one person's checklist will apply exactly to everyone. The bank's KYC information specifically mentions passport, residence visa/permit, foreign residential address proof and photographs for NRI individuals.
If you're in the US, I'd also keep your US address document and immigration/residency document ready even if the online application doesn't initially ask for everything.
I opened an NRO account with Union Bank after moving to the UK, and in my case I had to submit quite a few KYC documents.
The main documents I provided were my passport, UK residence document, overseas address proof, PAN card and photographs. The bank also asked for the NRI account opening form and details about my occupation and source of income.
One thing I would definitely check is your existing Indian savings account. Once you become a non-resident, you generally shouldn't continue operating a normal resident savings account as if you were still resident. My existing account was redesignated as an NRO account rather than me maintaining it as a regular resident account.
For Indian income, NRO made sense for me because I have rental income in India. I use it for expenses and other legitimate transactions in India.
Union Bank's current information says NRO accounts can be opened by NRIs, PIOs and OCIs, and Indian income such as rent, dividends and pension can be credited to an NRO account.
The exact documents can depend on your circumstances, so I would confirm with the branch handling your application before sending notarized copies from abroad.
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One thing I'd add is to distinguish eligibility documents from documents the bank might request for KYC or tax purposes.
Union Bank's NRI account opening form asks for information such as your overseas address, Indian address, passport details, country of residence, occupation, source of income, and PAN details.
So I'd keep a complete set ready rather than submitting only your passport.
A practical checklist would be:
Also, if you're considering an NRO account because of Indian rental income, remember that NRO interest is taxable and tax may be deducted according to applicable rules. If you're claiming a lower withholding rate under a DTAA, additional tax-residency documentation may be required. Union Bank lists documents such as a TRC, Form 10F, PAN, and other supporting documents for DTAA benefits.