Because of the growing demand for pretty much every skill in India, there is a lot of NRI’s returning home which is being referred to as the reverse brain drain. In this article, we’ll help you with one of the most integral parts of moving back, financial management. 

Opening New Bank Accounts: 

Since Non-Residential Indians cannot hold a regular bank account, you may have been maintaining non-resident ordinary (NRO), non-resident external (NRE), or an FCNR. 

NRO accounts are used to handle income received in India (rents, pension, etc), and the deposits are taxed and non-repatriable, whereas NRE and FCNR accounts are tax-free and repatriable. In India, the accounts are used to transfer foreign revenue.

If you have an FCNR deposit that hasn’t matured yet, you can maintain it till maturity. If you want to keep the foreign money from NRE/NRO or FCNR account, you’ll need to convert it into a resident rupee deposit account or a resident foreign currency (RFC) account.

After this, you will need a new account in India especially if you’re planning to take up another job. You can also maintain your own savings account to manage your future funds. To know more about RFC’s, read the article below –

• Bank account options from standard chartered for returning NRI’s.
• Offerings For Returning NRIs.

Your Foreign Assets

It is highly recommended to liquidate your foreign assets if you’re going to return to India permanently unless there is a huge tax hit and penalties of withdrawing it too soon. The income you earn from the property abroad is taxable in India once you become an Indian resident. 

If you hold any Mutual funds in India, you might want to change your status from an NRI to a resident in India.

You also need to get new health and life insurance in India. The one you have bought will not be applicable in India. 

Insurance

If you didn’t already have health and life insurance, it’s still recommended to get one. It will protect your savings, save you from medical inflation and help you stay secure. 

Investments

Whether you plan to get a job or establish your own business, your investments are critical not just for providing a financial cushion and securing your future, but also for helping you save money on taxes. Hence why you’d also have to consider embarking on a brand-new investment path in India.

Mutual funds are one of India’s most popular investment vehicles. If you are unsure about investing in a stock or do not have a high-risk appetite, they are a safer method, to begin with, diversified risks. These also come with a variety of tax advantages.

In conclusion, put together an investment portfolio, manage your assets well, get insurance, and handle your bank accounts well. Rest said, welcome home!