I moved to the UK recently and now need to sort out my banking in India. I have an old Bank of Baroda savings account that I opened before moving abroad.
I’m confused about whether I should convert it to an NRO account or open a new NRE account. I’ll be sending money from my UK salary, but I also have some rental income in India.
For anyone using Bank of Baroda, is it better to maintain both NRE and NRO accounts? Also, can the account-opening process be completed from the UK?
Would appreciate hearing from anyone who has recently gone through this.
I moved to Australia and had a similar situation. I opened an NRE account for my overseas earnings and kept an NRO account for things like rent and other Indian income.
The main thing I found confusing was the difference between the two. NRE is generally used for funds coming from outside India, while NRO is useful for managing income originating in India.
Bank of Baroda does have an NRI account-opening process for people living overseas, so you don't necessarily have to travel to India just to start the process
In my case, I ended up keeping both. I use the NRE account mainly for money transferred from overseas and the NRO account for income I receive in India.
I was also told that my existing resident savings account needed to be converted to NRO after my status changed to NRI.
The actual process wasn't too difficult, but I had to provide my passport, overseas address proof and other KYC documents. I would check with Bank of Baroda before sending anything because document requirements can vary depending on how you apply.
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If you already have a resident Bank of Baroda account, I would speak to the bank about converting it to NRO rather than simply continuing to use it as a normal savings account.
For your situation, having both accounts could make sense. Your UK salary/remittances can go into NRE, while rental income can be handled through NRO.
Just confirm the latest KYC and attestation requirements with the bank before submitting the application.