Opening Bank Account Abroad for Indians

The Reserve Bank of India as granted general permission to various categories of persons and entities to open, hold and maintain foreign currency accounts with a bank outside India. In this article, we look at some of the categories of persons and entities enjoying general permission to open bank account abroad.

Students

Students who have gone abroad for studies or who is on a visit to a foreign country are allowed to open a bank account abroad. However, on return of the person back to India, the balance in the account must be repatriated to India. Short visits to India by a person who has gone abroad for studies, before completion of studies will not be treated as return to India.

Trade Fair or Exhibition

Persons or business resident in India, who have gone abroad to participate in an exhibition or trade fair can open a bank account abroad to credit the sale proceeds of goods on display in the exhibition or trade fair. However, the balance in the account must be repatriated to India through normal banking channels within a period of one month from the date of closure of the exhibition or trade fair.

Export Contractors

Any Indian exporter who has undertaken a construction contract or a turnkey project outside India or who is exporting services or engineering goods from India on deferred payment terms with a bank outside India are allowed to open bank accounts. However, to open a bank account, the exporter must obtain approval as required under the FEMA regulations for undertaking contract/project/export of goods or services and the terms stipulated in the letter of approval must have been complied.

Shipping or Airline Companies

Shipping or airline companies incorporated in India are allowed to open bank accounts in foreign banks for the purpose of undertaking transactions in the ordinary course of business.

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Frequently Asked Questions

Common questions about Opening Bank Account Abroad for Indians.

The Reserve Bank of India allows various categories of persons and entities to open, hold, and maintain foreign currency accounts with banks outside India for specific purposes, such as pursuing studies abroad, participating in trade fairs or exhibitions, undertaking construction contracts or export of services, and for shipping or airline companies to carry out their business operations.

Yes, students who have gone abroad for studies or are on a visit to a foreign country are allowed to open a bank account abroad. However, upon their return to India after completing their studies, they must repatriate the remaining balance in the account to India.

Indian exporters who have undertaken a construction contract or a turnkey project outside India or are exporting services or engineering goods from India on deferred payment terms can open a bank account with a bank outside India. However, they must obtain the necessary approvals as per FEMA regulations and comply with the terms stipulated in the approval letter.

Yes, persons or business residents in India who have gone abroad to participate in an exhibition or trade fair can open a bank account abroad to credit the sale proceeds of goods displayed at the event. However, they must repatriate the balance in the account to India through normal banking channels within one month from the date of closure of the exhibition or trade fair.

Yes, shipping or airline companies incorporated in India are allowed to open bank accounts in foreign banks for the purpose of undertaking transactions in the ordinary course of their business operations.

Yes, the balance in the bank account opened abroad for participating in a trade fair or exhibition must be repatriated to India through normal banking channels within a period of one month from the date of closure of the exhibition or trade fair.

Yes, short visits to India by a person who has gone abroad for studies, before completion of their studies, will not be treated as their return to India. Hence, they can continue to maintain their foreign bank account during such short visits.

Yes, exporters who want to open a bank account abroad for undertaking construction contracts, turnkey projects, or exporting services or engineering goods on deferred payment terms must obtain the necessary approvals as required under the FEMA regulations. They must also comply with the terms stipulated in the approval letter.

No, the Reserve Bank of India has granted general permission to open bank accounts abroad only for specific categories of persons and entities, such as students, participants in trade fairs or exhibitions, exporters undertaking specific projects or exports, and shipping or airline companies for their business operations.

The article does not explicitly mention a specific time limit for students to repatriate the balance in their foreign bank account after returning to India upon completing their studies. However, it states that upon their return to India, the balance in the account must be repatriated to India.