YES BANK NRI Account: NRE and NRO Banking Options Explained

I'm based in the US and looked into YES BANK's NRI services recently.

One thing I liked was that the bank provides an online NRI account-opening option for customers overseas. The bank says NRIs can apply online when they are outside India, while branch applications are also available.

However, I would still prepare your KYC documents carefully. The bank's NRI documentation refers to passport and NRI-status documentation, and its published account-opening material includes identity and address-proof requirements.

If you're applying from the UAE, make sure you have your passport and valid residence/status documentation available.

I would also check the FATCA/CRS information you need to provide. This becomes particularly relevant for NRIs living in countries such as the US.

One other point: if you already have a resident savings account with YES BANK and have become an NRI, don't simply continue using the resident account as normal. Contact the bank about redesignating it appropriately. YES BANK has a specific resident-to-NRO redesignation process and checklist.

I use an NRO account for India-related income and found that keeping it separate from overseas funds makes record keeping much easier.

For example, if you receive rental income in India, that can be handled through the NRO account. YES BANK specifically describes its NRO savings account as being useful for parking income earned in India, including rent, dividends and pension.

The important thing is not to think of NRE and NRO as interchangeable accounts.

NRE is generally associated with eligible overseas funds maintained in India, while NRO is designed for legitimate rupee income and transactions connected with India.

YES BANK also offers NRE and NRO fixed deposits, so you can potentially use deposits in addition to savings accounts. The bank's current deposit page lists NRE fixed deposits and NRO fixed deposits separately.

There is also an FCNR deposit option if retaining foreign-currency exposure is important to you.

I would compare the interest rates, minimum balances, charges, remittance costs and repatriation process before deciding. Those can matter more than the basic account features when you are living abroad.

I opened an NRE account mainly because most of my money comes from my overseas salary.

The basic distinction that helped me was to think about the source of the money, rather than simply asking which account has better features.

My overseas earnings are transferred to India, so I use the NRE account for that purpose. I also have an NRO account because I have some income originating in India.

YES BANK's current NRI information specifically lists both NRE and NRO savings accounts. The bank describes its NRE account as a way for NRIs to transfer their earnings to India, while its NRO account is intended for managing rupee funds and India-earned income such as rent, dividends and pension.

Another useful thing is that YES BANK allows NRE and NRO accounts to be held jointly with a resident Indian, subject to its account-operation rules.

I wouldn't automatically assume you need both accounts, though. If your only activity is bringing overseas earnings into India, an NRE account may be enough. If you also receive Indian-source income, an NRO account becomes more relevant.