State bank of India is one of the best nationalized bank with very good online service facility. This includes easy money transfer using internet banking, online fixed deposit opening etc. If you are an NRI (Non-resident Indian) staying outside India it is a very good option to have an NRI account with SBI.
NRI account comes in two major forms – NRO, NRE
NRE – Your Indian transactions (deposit, withdraw at India) can’t happen with this account. Also, if we open fixed deposit in NRE scheme interest earned is non-taxable (but interest rates are substantially lower)
NRO – We can operate our Indian transaction in addition to overseas transaction using this account. If you are planning to start a business this is the right chooice. Fixed deposits yield good returns under NRO. The interest earned under this scheme is taxable. Tax percentage depends on your country of residence, taxation rules etc. Usually it is about 30%
In either case (NRE savings, NRO Savings) if we have money in our savings account we earn a interest of 3.47%. SBI makes the NRI account opening process very easy and simple. Here are the steps to create a new NRI account with SBI :
1) Log onto SBI NRI website and download NRI Account opening forms online (Right corner-> Download Forms->Open An Account)
2) The account opening form will have NRE in the header. Strike it out and make it NRO if you are planning to open an NRO account( There is no separate form for opening NRO. I got this confirmation from SBI customer support representative today). Another change in Section II (Account Details Types of Account to be opened in first page is needed) Change Non-Resident (External) Savings Bank Account to Non-Resident(Ordinary) Savings bank account
3) Fill the necessary details.
4) Attach an attested copy of passport (only first page, last page, filled pages, pages with visa stampings,I-94 in case of H1-B,H-4 visas etc) are needed. Also, include copies of valid visa, identity proof etc. All these photocopies need to be attested by notary public, your banker abroad (If you maintain a bank account in your country of residence (say USA,UK) your bank will have facility to attest your copies))
5) Attach proof of telephone bill,electricity bill, recent bank statement, cancelled cheque etc – Two such proofs are needed
6) In case of joint account the documents mentioned in step 4 and step 5 are needed for both the applicant
7) There are two types of branches -Ordinary branch, Personal banking branch (PBB)/Sp PBB. If your branch is an ordinary branch send a cheque/DD for Rs.1000. In case of personal banking branch send a cheque/DD for Rs.5,000
8) If you are going for a DD it is addressed payable to :
Branch Name Your Name (Opening a new NRO/NRE Savings Account)
9) Attach your passport size photoes. Sign it across
10) Your signature in page 2 Section VIII (Specimen signature) need to be attested by notary public/banker abroad