The State Bank of India (SBI) has introduced a new TAB-based digital onboarding process to make it easier for Non-Resident Indians (NRIs) to open NRE and NRO accounts. This initiative is now available at all SBI branches in India and select branches abroad. By using digital tools, the bank aims to simplify and speed up the account opening process for NRIs.
With this new system, there is no need for physical paperwork. NRIs can now open their accounts faster, as the process allows for digital verification of documents. This digital approach is expected to make the entire account opening procedure more efficient and convenient.
NRI accounts are specially designed for Indian citizens or Persons of Indian Origin (PIOs) living overseas. These accounts offer a variety of services to help NRIs manage their financial transactions, investments, and savings within India.
Challa Sreenivasulu Setty, Chairman of SBI, commented: “The launch of the TAB-based end-to-end digital NRI account onboarding is a major step forward in using technology to improve customer convenience. This solution will significantly reduce the time it takes to open an account, offering a seamless digital experience.”
RBI Increases Interest Rates on FCNR (B) Accounts
In a recent update, the Reserve Bank of India (RBI) announced an increase in the interest rate ceiling for Foreign Currency Non-Resident (FCNR) accounts. This change, which was made during the RBI’s monetary policy meeting on December 6, 2024, aims to attract more foreign currency deposits.
The new ceiling for FCNR (B) deposits is set at the overnight Alternative Reference Rate (ARR) plus 400 basis points for deposits with maturities between 1 and 3 years. This adjustment will be in effect until March 2025, replacing the previous limit of ARR + 200 basis points.
FCNR (B) accounts are designed for NRIs who wish to deposit foreign currency earned abroad in India. The new interest rate ceilings are expected to make these accounts more attractive to overseas investors.
The RBI stated: “To encourage more capital inflows, we have decided to increase the interest rate ceilings for FCNR (B) deposits. Banks can now offer interest rates of ARR plus 400 bps for deposits between 1 and 3 years, and ARR plus 500 bps for deposits with maturities between 3 and 5 years. This adjustment will remain in place until March 31, 2025.”
Here are the updated rates for FCNR (B) deposits:
- 1 year to less than 3 years: ARR for the respective currency + 400 basis points
- 3 years to 5 years: ARR for the respective currency + 500 basis points
