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NRI joint account with resident Indian was not possible till 2011. But now NRI can also operate a resident savings bank account in India on ‘either’ or ‘survivor’ basis with a resident – resident can also be a joint holder in NRO account.

For example, a son who works abroad can open a joint bank account with his mother who is resident. This bank account would be a residential savings bank account or NRO account.

But still, it’s illegal for an NRI to hold resident savings account as a single holder – there’s penalty.

nri joint account with resident

NRI Joint Account with Resident – Normal Savings Account

Key conditions for this account:

  • The joint account can be between an NRI and his/her resident relative. The relative includes – parents, siblings, siblings’ spouses, own spouse, children, spouses of children, grandparents, grandchildren, spouses of grandchildren.
  • The account will be subjected to all rules and regulations applicable to a resident bank account.
  • The bank should keep the relevant documentation in place, record the need for the account and also get a signed declaration from the non-resident account holder indicating that the NRI will not use the cash in violation of the FEMA and is responsible for any repercussions in case there is a violation of FEMA.
  • The NRI cannot deposit any money in the form of cash, cheque, direct credit or remittances received in this account.
  • Money cannot be transferred outside India, nor can be given as a gift. The funds cannot be transferred to an NRE/NRO account.
  • The resident Indian will be the primary/first account holder in the joint account. The NRI will be the second holder.
  • It can be used to facilitate payments in India by the resident account holder.

NRI can be a joint holder in more than one savings account but only with close relatives. If due to any circumstance, the NRI holder becomes the survivor that savings account shall be categorised as NRO. wiseNRI

NRIs can open other types of accounts in India for transaction purposes. These include NRE, NRO or FCNR accounts. NRE and NRO accounts can either be savings, or fixed deposit accounts. The FCNR account is only a term deposit account.

Read – NRI Gift Tax India

Here are answers to some commonly asked questions –

How to open NRI joint account with resident?

Savings, Current and Fixed Deposit accounts opened by resident individuals can have an NRI who is a close relative as a joint account holder. They account holders should file a declaration of the status of the NRI and submit the necessary documentation as per the bank’s requirements.

NRO Joint account with Resident Indian- is it possible?

Yes, NRO account can be jointly held with resident Indian – but this account can’t be “either or survivor” – it should compulsorily be “former or survivor”.

nro joint account with resident

Can an NRI open a resident savings account?

NRIs cannot open resident accounts. After their status changes to ‘NRI, they have to close the resident accounts. They can open and operate any of the following accounts –

  • Non-Resident Rupee Account (NRE Account)
  • Foreign Currency Non-resident Account (FCNR Account)
  • Non-Resident Ordinary Rupee Account Scheme (NRO Account) and
  • Special Non-resident Rupee Account (SNRR Account) (for business)
  • NRIs can operate resident bank accounts on “either or survivor” basis with a resident Indian.

Can an NRI continue with a resident savings account?

An NRI cannot operate his resident savings account. It should be closed immediately or converted to an NRO account.

What’s penalty for NRI having resident account?

Though there is no time limit to convert/ close the resident account, an NRI can be penalized to the extent of three times the sum involved in the case or Rs. 2,00,000 if the sum cannot be determined. He can be charged Rs. 5000 per day if he continues to hold the resident Indian account. (Please talk to your CA)

Check – Good Time To Transfer Money To India

How to convert resident account to NRI account?

A resident savings bank account can be converted to an NRO account. The steps are as follows –

  • Inform the bank that your residency status will be changed.
  • Get and complete form for conversion of resident account to NRO account.
  • Get documentation required such as KYC, Visa permit, passport etc in place
  • Submit all relevant documentation.
  • Bank will verify the details and if approved will redesignate the status of the resident account to an NRO account

Read – Change in Residential Status

How to convert NRI account to resident account?

The NRI has to file a declaration stating that he is returning back to India and would be a resident Indian. The declaration should ask for re-designation of NRO account to Resident Savings account and be submitted at the local branch of the bank.

If you have any questions or if you would like to share your experience with other readers – please add in the comment section.

nri joint account with resident
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Hemant Beniwal

Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice in 2009 & is among the first generation of financial planners in India. He also authored Bestseller book "Financial Life Planning". 

  • When my NRI son inherits our house, and he disposes off by Will, how can he take this funds to USA? He accepts cheque as payments which he needs to take home.Can he use services like Western Money to take money home?

    • Hi Hirendra,

      Definitely online money transfers such as western money transfers are faster and cheaper mode of transferring money abroad.As per RBI guideline, there is a per person per year limit of $250000 or its equivalent in indian rupees on transfers.

  • My son is a NRI and we parents are NRI too, but we parents will be returning to India. Wanted to know if we three can be a joint NRE account holder even after we parents return to India. Son will continue to work abroad

    • Hi john,

      Only 2 NRIs can become joint holders of NRE Account. You three cant be joint holders of NRE account

    • Hi Savio,

      As per law, NRE account cannot be held jointly by NRI and resident relative.You have to intimate your bank regarding your wife status

  • Can I convert my joint account to nri account as my spouse is working aboard? What are the KYC I need to submit?

    • Hi Sumit,

      Yes, you can redesignate your joint saving account to NRO account if your wife status is NRI as NRO account allows joint holding with a resident relative. Regarding KYC its better you should check bank website.

  • I have a house at Ernakulam and wanted to rent it to a Govt Staff, whose rent is paid by Govt via DD in my name. Can I deposit that DD in to my joint account with my mother?

  • How about opening joint DEMAT account where first owner is NRI and second owner is RI and vice versa? This is just to convert pre-existing paper based shares into DEMAT form and eventually sell them off.

  • Hi .i am living in Dubai and working there as cabin crew .but now am in India and I want to open an joint nri account .what documents the bank may ask ?

  • I moved to NRI status and I have rental income in Kerala. Can I deposit it to my joint account with my mother or to my NRO account only?

  • My dad is an nri and wants to open an nri account and wants me to be joint account holder with him. But I am not an nri. So can he open the account

    • Hi Raj,

      Whether salary directly received in an Indian bank account by an NRI for receives rendered outside India has been a matter of frequent litigation. In these cases, usually, the view has been that such salary is not taxable in India since the services have not been rendered in India, and funds have been merely remitted to an Indian bank account. However, in some cases, such income is taxed in India based upon the fact that it was first received in India. It is recommended that you receive the salary locally where you are employed and then remit it as required by you. Otherwise, you may have to report it in tax returns in both the countries and take credit of taxes paid in the country where you are resident for tax paid outside based upon double tax avoidance agreement between the two countries.

      And for further knowledge, consult with your financial planner.

  • My father and my son held a savings account. My son is now an NRI. My father is dead and my son is only survivor for that account. There is only 500 rs in it. Bank goes on deleting 15 rs quarterly as sms charges. What will happen when the balance is zero and still account is not closed??

  • I am an NRI and also my husband. I have an NRE Account in a Bank and wants to add my husband to make it a joint account

    • Hi. Maria,

      You can’t add your husband in the existing account.
      But you can open a new bank account as a joint status.

  • Can I open a joint account with my fiance who is a resident in India. I am a permanent resident of NZ? We are not married yet. Thanks

  • Can three members share a single NRI account? My and my husband is in abroad.can me, my husband and my mother in law can share a single NRI account?

  • I am resident in Australia and I have a joint NRO account with my brother who also lives in Australia. Can I add as another joint holder my other brother who is resident in India on this NRO account?

  • If i have saving account & NRE account in india in different banks & i investing in mutual funds already by saving account ??i have any problem in future..??but saving account all money i transfer by NRE account.Please advise me.

  • I have come to usa for my son medical visa and my question is can i open a joint account in india without my presence and the other person currently residing in india open the joint account for us

  • I am NRI and hold OCI. I have a NRE/NRO account. My mother is very old. Can I open a joint account with my mother. She is an Indian resident. Her money will be in that account. I just want to operate it to transfer money in Indian payments when she is sick

    • Hi Pradeep,
      Usually, the joint account is on a “former or survivor” basis. In this case, the “former” alone can operate the account. If the “former” expires, the “survivor” can operate the account.

  • an my mother open bank account as primary holder with me(as NRI). and if yes then i can open PPF in name of my mother. where i will contribute.

    • Hi Saurav,
      Some banks allow the primary account holder to make changes autonomously, but most require the consent of both parties.

  • Hi, your post is very knowlegable. is their any RBI circulars or FEMA circular which u can provide as reference. Kindly provide guidelines for resident savings account of NRI with a resident Indian.

  • I have been NRI for the past 20 years. in this period, my father and wife also were with me in Foreign. They both had their individual earning here. However, for the sake of convivence, we had one bank account in my name and all such balances were transferred to India and most of them maintained as FDR. Now when I come back to India for good, will interest of deposits fully charged to me? will I able to avoid tax liability?

    • Hi Manpreet
      As per my knowledge it would be quite difficult as you both are not present. Its better to talk to customer support of the bank in which you want to open.

    • Hi Syed,
      You can visit any bank nearby in which you want to open an account or directly call the customer support of the bank. You need to give certain documents and your account will be open.

  • my friends filling return of his son as resident status, but income is only interest on fixed deposit is below Rs.50 thousand, advise me to say what to do for the year 2020 as their son’s income from only interest income is below Rs.50.000/- is it necessary to file ITR for the year 2020 as basic limit is for NRI is Rs.2,50,000/- by changing in ITR profile as NRI. he should not file ITR for the year 2020. Is not filling is penality for NRI.

  • my friend’s son goes to Europe in the study. his son have joint saving a/c with their parent & has FDs whose interest is below rs 50000.

  • If resident go to foreign country & have saving bank as resident. But did not come to india after 2 to 3 years. Then what position of the saving bank a/c also not in position to inform bank.

    • Hi Vipan,

      As per my knowledge, it is mandatory to inform the bank in case of resident status changed otherwise the account will be penalized.

  • I have normal joint saving acct with my son who is NRI in canada . Can he deposite money in this acct from his NRO acct. Can this money be then gifted fo him & transfered to his bank in canada

    • Hi Baldev,

      As per my knowledge, you can transfer the amount from the NRO account to saving account. The transfer of the Amount should be done accordingly as mentioned in gift taxation rule.

  • I am an NRI but my wife is not… we have a joint NRO account. The bank says my wife cannot operate the same since she is not an NRI. is this true?

    • Hi Debasish,

      As per my knowledge, Your wife cannot Operate the joint account as it is on “former or survivor” basis.

    • Hi Mithilesh,

      As per my knowledge, An NRI can be a joint holder with a resident Indian but only on a former or survivor basis.

    • Hi Naveen,

      As per my knowledge, You have to apply in the respective bank through online or offline mode with the required documents.

  • I am NRI and my child is now 18 yrs and will be in India for higher studies. Do I need to open a savings resident account or nro joint account with the resident?

  • I am NRI, I have a joint resident account with my mother who is resident and the first holder of the account, can I use this account for PPF?

    • Hi Sanjay,

      As per my Knowledge, An NRI cannot open a PPF account, However, you can open the PPF account on your Mother’s name.

  • hi, I have joint savings account with my mother since 2012, in the year 2016 I became NRI working for cruise ships sailing outside India. normally my assignment is around 8 months outside India. is it legal to send my salary in that account? as I don’t have any other NRE/NRO account. also if it is legal to make an investment from my savings in the above mentioned joint account like fixed deposits or government-backed investment schemes.

    • Hi Prasoon,

      As per my knowledge, it is advisable to have an NRO/NRE for the purpose of investment if you are an NRI.

  • I have not converted my resident account yet, i have few fixed deposites in it. If i open a joint saving account , can i have fd’s on my name in that account?

  • Hi, I’m a Singapore citizen staying in Singapore. My girlfriend is staying in India. She is born there. Can I open a bank joint account with her?

  • I have a joint account in icici under me and my husband’s name but we living in Newzealand. How can we close our account or run?

    • Hi Sapna,

      As per my knowledge, If you want to continue the account you can ask the bank to convert it into the NRO account.

  • My wife is foreigner and not citizen of India and I am Indian resident and we both are living in Delhi… I have to open a joint account for Australian visa purpose… How to open joint account with foreigner wife?

    • Hi Ali,

      As per my knowledge, you can easily open the Joint account(Nre) via online or offline mode through the bank.

  • Hi,pls guide on the following:
    My wife has become an NRI for this FY and I am resident indian.
    1. We have a joint home loan account. The EMI’s are being jointly paid.
    2. My wife has tax saving FD (05 yr locking)maturing 2023.
    Now, how to convert her accounts onto NRO ?
    Pls advice
    Thanks you

  • My daughter, after graduating in USA has joined for employment in Houston now. What type of account can be opened in India. My purpose is that she should be able to remit money into this account for repayment of her educational loan. I should be able to operate the account for her at India.

    • Hi Abhay,

      As per my knowledge, you can open an NRO account jointly with your Daughter in that way you will be able to operate it as well, and the money can be used to pay the education loan.

  • I am a US citizen, and my wife lives in India. Can she open up the joint saving account with me in India without my presence? What are the documentation needed from my side?

    • Yes, she can open a saving account without your presence. she can consult with the bank officer for required documents.

  • If I am RNOR having joint account with my wife in foreign bank with my income alone . My wife is resident , will she be taxes on income generated?

  • Hello,

    If I am an NRI and open a joint account with my grandmother who lives in India where she deposits money, upon her death, will I be able to automatically operate the account and transfer the money to the EU? Is there a limit on how much I can transfer?

    The purpose is to avoid a higher gift tax in the EU while the donor is alive, where as an inheritance is taxed lower.

    Thank you

  • My mama (mother’s brother)is Indian resident expired he has a joint account with her wife, now his only son is a USA citizen, how inherent with this bank account and a DEMAT account

  • I am just reading up this blog that says an NRI can hold a joint account with a resident. I have been an account holder with my father at an Indian bank since I was on a student visa in the USA (from the late 2000s) in 2016 Dec, I became a perm. a resident of the USA, and still have the same joint account.. did not make any modifications… is it all okay?

  • I bought equity shares jointly with my one friend long back. Now I want to open a Demat account but my friend is now settled outside the country. He doesn’t have a pan card and adhar an Indian Passport. Then how can I open a Demat account jointly with my friend

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