10th Year Celebration - 'Let's Make A Plan' Offer for NRIs

All about NRI Joint Account with Resident Indian

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.


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.

About the Author

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".

  • Hirendra says:

    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?

    • rahul says:

      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.

  • John says:

    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

    • anuj says:

      Hi john,

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

  • Savio says:

    I am an NRI and my Wife was NRI when account was opened…now she is resident Indian, is it legal

    • anuj says:

      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

  • Sumit says:

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

    • rahul says:

      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.

  • Subin says:

    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?

    • kabir says:

      Hi Subin,

      Yes, you can deposit DD in your joint account.

  • Sougata Das says:

    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.

    • Dear Sougata,

      My understanding is even joint holder in demat should be an NRI – I will suggest you to check with your broker.

  • Pravinder says:

    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 ?

    • Vihaan says:

      Hi Pravinder,
      For documents, it’s better you should check bank website

  • Subin Philip says:

    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?

    • Shruti says:

      Hi Subin,
      Rental income in Kerala can be deposited only in NRO Accounts.

  • PS says:

    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

    • Vihaan says:

      Hi PS,
      Yes, he can open NRI joint account with you.

  • Raj says:

    I am an nri, and transferring my salary to indian resident account of mine. what will be the repercussions?

    • Aryan says:

      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.

  • Hirendra says:

    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??

    • Hi Hitendra,

      They will keep adding the charges so if possible you can close this account.

  • Maria says:

    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

    • Nikhil says:

      Hi. Maria,

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

  • Gerald says:

    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

    • Nikhil says:

      Hi. Gerald,

      As you are a permanent resident, you need to consult to your banker regarding this.

  • Kriti says:

    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?

  • John says:

    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?

  • Alok says:

    can i open a NRE account jointly with a resident indian?

  • >