Process to Convert Resident Account into NRO Account After Moving Abroad

Starting a New Chapter Abroad? Don’t Forget Your Bank Account

Moving abroad is a life-changing decision—new surroundings, new opportunities, and often, a brand-new financial landscape. Amid all the excitement and responsibilities, there's one important task that many overlook: converting your Indian resident savings account into a Non-Resident Ordinary (NRO) account.

It may seem like a minor formality, but it’s a legal requirement under the Foreign Exchange Management Act (FEMA). Continuing to use your resident account after becoming an NRI can lead to complications, penalties, or even account freezes.

This blog will walk you through the step-by-step process, explain the importance of conversion, and answer common FAQs so you can stay financially compliant and stress-free.

Why It’s Important to Convert to an NRO Account

Before we get to the “how,” let’s understand the “why.” If your residency status has changed, the law requires that your financial profile reflect it. Holding on to a resident savings account as an NRI is not just incorrect—it’s illegal.

Key Reasons:

• FEMA Compliance: The RBI mandates conversion to NRO accounts for NRIs.
  
• Avoid Legal Troubles: Continued use of a resident account can lead to penalties.
  
• Manage Indian Income Legally: NRO accounts are ideal for handling rent, pension, dividends, or Indian investments.
  

Step-by-Step Process to Convert Your Account

1. Notify Your Bank About Your NRI Status

As soon as you move abroad, inform your bank. Some banks allow this through customer service channels or online forms. Always follow up with formal written communication or email.

2. Fill Out the NRO Conversion Form

Obtain the NRO conversion form from your bank or download it from their website. This form requires:

• Your personal and account details
  
• Updated overseas address
  
• Declaration of NRI status
  

3. Submit the Required Documents

You’ll need to attach:

• Self-attested copy of your passport
  
• Copy of visa or residency permit
  
• PAN card
  
• Proof of overseas address (utility bill, rental agreement, etc.)
  
• Passport-sized photograph
  
• Signed conversion form
  

Some banks require attestation from a notary, Indian Embassy, or authorised bank official if you’re applying from abroad.

4. Decide Between Converting or Opening a New NRO Account

You have two choices:

• Convert your existing account
  
• Close it and open a new NRO account
  

Conversion is often quicker, but opening a new account may offer better control and newer features.

5. Provide an Indian Contact Number (Optional)

Though not mandatory, having an Indian mobile number helps with OTP verifications and smoother communication.

6. Wait for Verification

The bank will verify your documents and process the request, which typically takes 5 to 15 working days. You’ll get a confirmation once the conversion is complete.

What Happens After Conversion?

• Your account will now function as an NRO account
  
• You can deposit Indian earnings like rent or dividends
  
• Repatriation up to USD 1 million per financial year is allowed (after taxes)
  
• You can link existing or new Fixed Deposits to the account
  

Can You Also Hold an NRE Account?

Yes! You can open and operate both:

• NRO Account: For income earned in India (rent, pension, dividends)
  
• NRE Account: For earnings from abroad, fully repatriable and tax-free
  

They serve different purposes but can be held simultaneously.

Points to Remember

• Always keep your KYC details updated
  
• Inform your bank of any change in visa or address
  
• Do not operate your resident savings account after becoming an NRI
  
• Keep a record of repatriation limits and applicable taxes
  

Digital Banking Makes It Easier

Banks like the Bank of Maharashtra allow for document uploads, video KYC, and even online account conversions—ideal for NRIs who can’t visit a branch in person.

Why Choose Bank of Maharashtra?

Bank of Maharashtra offers:

• A transparent and seamless NRO account conversion process
  
• Dedicated NRI customer support
  
• Competitive interest rates
  
• User-friendly banking through Zen Lyfe App (mobile banking App) and Maha-connect Internet Banking portal
  

With a strong national presence and a deep understanding of Indian regulations, we help NRIs manage their Indian finances smoothly from anywhere in the world.

Conclusion

Converting your resident savings account to an NRO account is more than a formality—it’s a legal and financial necessity. It ensures your compliance with Indian laws while making it easier to manage income earned in India.

The process may seem daunting, but with the right bank—like Bank of Maharashtra—it becomes a simple and structured experience. Their customer-centric approach and digital facilities are designed to meet the unique needs of NRIs, ensuring that your financial life in India remains seamless and secure.

Frequently Asked Questions (FAQs)

1. Is it mandatory to convert to an NRO account after moving abroad?

Yes, it’s a legal requirement under FEMA.

2. Can I continue using my resident account after becoming an NRI?

No, it violates RBI regulations and can result in penalties.

3. Do I need to close my existing account to convert it?

No. Most banks allow for direct conversion, though opening a new NRO account is also an option.

4. Is income in my NRO account taxable?

Yes. Income like rent or dividends is taxable, and TDS applies.

5. Can I send money from my NRO account to my foreign account?

Yes. You can repatriate up to USD 1 million per year after taxes. Visit website (www.bankofmaharashtra.bank.in ) for more details.

6. Can I nominate someone in India to operate my account?

Yes, you can nominate a family member or grant Power of Attorney.

7. Will my account number change?

Some banks retain the same number; others may issue a new one. It depends on the bank’s policy.

8. How long does the process take?

Typically 5 to 15 business days, depending on verification and documentation.

Author: Bank of Maharashtra
Date of Publish: 04 Dec, 2025