This Article was fact checked and last updated for accuracy on October 29, 2025 by Mani Karthik
I remember sitting in my ICICI Bank branch in Chennai in 2012, right after I got my H1B visa approved.
The branch manager looked confused when I asked about converting my savings account.
“Sir, you need to close this and open a new account,” she said.
That wasn’t entirely accurate. But I didn’t know better back then.
Let me tell you what I learned over the years. And what the actual rules say.
The Short Answer
Yes, you can convert your existing savings account. But there’s a process. And some conditions apply.
The bank won’t just flip a switch and change the account type. There’s paperwork. Documentation. And sometimes, account number changes.
Here’s what most people don’t realize. Your regular savings account becomes a problem the moment you become an NRI. Technically, you’re not supposed to keep operating it.
RBI says you have a “reasonable time” to convert. Most banks interpret this as 6 months from when your residential status changes.
I took 8 months. Nothing happened. But I wouldn’t recommend testing the system.
Three Ways This Plays Out
| Your Situation | What You Need | Time It Takes |
|---|---|---|
| Just moved abroad, existing savings account with salary credits | Convert to NRE account for foreign salary deposits | 7 to 14 working days |
| Have rental property in India, need to receive rent | Convert to NRO account or open new NRO alongside existing | 7 to 14 working days |
| Moved abroad but parents depositing money into your account | Keep as NRO or convert savings to NRO | 7 to 14 working days |
My Personal Journey With This
When I left for the US in 2007, I had three savings accounts in India.
One with ICICI. One with HDFC. One with SBI.
The ICICI account had my rental income coming in. I converted that to NRO.
The HDFC account was dormant. I just closed it. No point keeping it.
The SBI account had some fixed deposits linked. That one was tricky. I had to break the FDs, convert the account, and then recreate the deposits as NRI FDs.
Lost some interest in the process. Maybe Rs 5,000. But it was cleaner than keeping a regular account active.
The Actual Conversion Process
Step 1: Check Your Residential Status
This matters more than you think. You become an NRI when you leave India for employment or business purposes for an uncertain period. Or for a period exceeding 182 days in a financial year.
Get this documented. Your visa. Your employment letter. Flight tickets. Keep everything.
Step 2: Visit Your Bank Branch
Yes, you might need to physically visit. Some banks allow this through their international branches. ICICI has branches in the US. So does SBI.
But smaller banks? You’re flying back or giving power of attorney to family.
I gave POA to my mom for my SBI account. She handled the conversion while I was in California. Saved me a trip.
Step 3: Submit These Documents
Every bank asks for slightly different things. But the common list includes:
Your passport with valid visa. Employment proof or business registration abroad. Proof of foreign address. Recent photograph. Existing account details.
Some banks want your PAN card. Some want a declaration about your income sources.
HDFC Bank wanted my Form 16 from my US employer. That was weird. But I provided it.
Step 4: Declaration of Income Sources
This is critical. You need to declare whether your account will receive foreign funds or Indian funds.
Foreign salary going in? NRE account. Rental income from Mumbai property? NRO account. Both types of income? You need both accounts.
The bank will ask you to sign a declaration. Read it carefully. I didn’t once. Had to redo it.
What Happens to Your Account Number
Here’s where banks differ wildly.
Banks That Keep Your Account Number: HDFC Bank usually retains your account number. Just changes the account type designation.
Axis Bank does the same in most cases.
Banks That Issue New Numbers: ICICI Bank often issues a new account number. Your old number gets closed.
SBI can go either way. Depends on the branch and their system.
State Bank of India gave me a completely new number. Had to update all my biller information. My Netflix. My Amazon. My insurance policies. Took me three weeks to update everything.
If you have automatic bill payments set up, ask the bank about account number changes upfront.
The Mistakes I Made
Mistake 1: Not Closing My Debit Card
I kept using my regular savings account debit card after moving to the US. For online shopping on Indian sites.
Bad idea. Once you’re an NRI, your card should be linked to an NRI account.
My bank blocked my card after 6 months. I was trying to buy a birthday gift for my mom. Card declined. Embarrassing phone call to the bank followed.
Mistake 2: Keeping Too Many Accounts Active
I had five bank accounts when I left India. Consolidated to two NRI accounts later.
Should have done it immediately. The maintenance was annoying. Plus, some accounts fell below minimum balance. Penalty charges added up.
Mistake 3: Not Updating My Mutual Fund Folios
My mutual fund investments were linked to my old savings account. When I converted to NRO, the SIP mandates failed.
Took me two months to update all fund houses. Had to submit fresh bank proofs. Sign new mandate forms.
If you have investments, check out this guide on updating your investment accounts after moving abroad.
Special Cases Worth Knowing
If Your Account Has a Joint Holder
This gets complicated. Your resident Indian spouse can be a joint holder on NRO accounts. But not on NRE accounts.
When I converted my savings account to NRE, my wife was still in India. She was a resident. The bank made her the first holder and me the second holder.
We fixed this later when she got her H4 visa and became an NRI too.
If You Have Loans Against Your Account
Your home loan or personal loan doesn’t need to change. But your EMI deduction account might need conversion.
Check with your bank. My home loan EMIs were getting debited from my savings account. I had to switch the debit to my new NRO account.
The loan department and NRI banking department don’t always talk to each other. I had to coordinate both teams.
If You’re Planning to Return Soon
Think twice before converting. When I came back to India in 2017, I had to convert my NRE and NRO accounts back to regular accounts.
More paperwork. More branch visits. More documentation.
If you’re going abroad for just a year or two, talk to your bank. Some banks are flexible for short term assignments.
Read about preparing your finances before moving back to India for when you return.
What Banks Don’t Tell You
The interest rate might change. NRE savings accounts often have better rates than regular savings. NRO accounts sometimes have lower rates.
Check the rate sheet before converting.
Your monthly average balance requirement might increase. NRI accounts often have higher MAB requirements.
ICICI wanted Rs 1 lakh MAB for my NRE account. My regular account needed only Rs 10,000.
You might lose some features. My HDFC savings account had free SMS alerts. The NRE account charged for it.
Small things. But they add up.
Online Banking Gets Weird
Your net banking login might change. Or might not. Depends on the bank.
HDFC kept my login same. Just added new account numbers under the same profile.
ICICI made me register fresh for NRI internet banking. Different portal. Different password. Different security questions.
Mobile banking apps? Hit or miss. Some banks have separate NRI apps. Some use the same app with different access levels.
Download the right app before you leave India. Setting it up from abroad is painful. I spent 45 minutes on an international call with SBI customer service trying to activate mobile banking from California.
Not fun. Not cheap.
Tax Implications Nobody Mentions
The moment you convert to an NRO account, TDS kicks in on interest. 30% flat.
My regular savings account interest wasn’t taxed at source. After conversion? 30% TDS every quarter.
You can claim this back when filing returns. But it’s a cashflow issue. For NRI tax filing strategies, check my detailed guide.
NRE account interest remains tax free in India. But if you’re a US person, you still report it to IRS.
FATCA compliance is real. Your bank reports your accounts to the IRS anyway. Don’t try to hide anything.
When Conversion Doesn’t Make Sense
If your account is dormant with minimal balance, just close it. Opening a fresh NRE or NRO account is cleaner.
If you have too many accounts, consolidate first. Then convert.
If you’re moving abroad temporarily for less than 6 months, talk to your bank about keeping your resident status.
If your account has complex features like overdraft facilities or linked credit cards, conversion can break these linkages. Evaluate if you need those features.
Still Confused?
Banking regulations change. Every bank has different processes. Your situation might be unique.
Drop your questions in our Facebook community. We have bankers, CAs, and thousands of NRIs who have done this conversion.
Real experiences beat any guide. The community has helped hundreds of members navigate their specific bank’s quirks.
Plus, someone might have dealt with your exact bank and branch. Their insights can save you weeks of back and forth.
The Bottom Line
Converting your savings account to NRE or NRO is possible. Takes 1 to 2 weeks if you have all documents ready.
Choose NRE if receiving foreign funds. Choose NRO if receiving Indian income. Choose both if you have both income types.
Plan ahead. Don’t wait till your bank freezes your account for non compliance.
I learned this the hard way. You don’t have to.
Sources:
Reserve Bank of India – FAQs on NRI Accounts
FEMA Regulations – Current Account Transactions
Income Tax Act – Taxation of NRI Accounts