NRI is more than just shifting to abroad. In India becoming a NRI is a status symbol. And why not? People with talent find more making opportunities abroad than they do in India. Whole world now accepts that the Indians are very talented. It is benefit for the host country if a capable and skilled professional decides to take up their citizenship. The host country will benefit a lot from the talent and the income of the immigrant, hence they are always ready with open arms to welcome Indians to be their citizens. Becoming a NRI means almost giving up Indian identity and accepting a new identity of the new country. But things can be rough and full of hassles if the execution happens without a proper planning. If you are the one who is planning to settle abroad in near future then you need to know, plan and settle many things before you shift. Here is a complete checklist of the things you need to settle before you settle abroad.

Checklist Before Becoming NRI


  1. Your NRI And NRO Accounts

NRI and NRO accounts are the accounts meant for the immigrant Indians in abroad. Here is what you would need to take care of:

  • Convert your savings account to NRO Account.
  • It is mandatory by the Indian government that any Indian resident who is planning to go or shift abroad need to change their bank’s savings account to NRO account i.e a Non-Resident Ordinary Rupee (NRO) account.
  • An NRO account is the same account only with a status change in your savings account to an NRO account. This is done to categorize your account as an NRI account.
  • NRIs are allowed to deposit all the Indian rupees earnings such as from rents, interest from savings account and fixed deposits.
  • NRIs can even deposit funds from abroad in this account.
  • An NRI can use this account both for paying EMIs and for investment.
  • One important this related to this account is- NRIs need to submit a certificate showing the deduction of taxes from these accounts.
  1. Open a NRE account

NRE is a Non-resident external account where an NRI can deposit foreign money in Indian account. There are three types of NRE accounts: a. Savings account,  b. Current account, c. fixed deposit account. With NRE account you can enjoy the following benefits:

  • Interest earned on these accounts are tax-free.
  • These accounts accept all currencies.
  • Interest earned on normal savings NRE account is between 3% to 4% and on fixed deposit account it is 6% to 7%.
  1. PPF Account

Public Provident Fund or PPF scheme is a popular long term investment option backed by Government of India with attractive interest rate and returns that are fully exempted from Tax. Here is what you should know about your PPF account before you become a NRI.

  • For the Existing NRI’s: They cant open a new PPF account
  • If you already have a PPF account and then shift to abroad in that case you can continue your PPF account, but this can be done only till maturity, after the maturity it can be extended.
  • The payment towards our PPF account can be done from both NRE and NRO account.
  1. Open New NRE Demat account

According to the Indian government and RBI guidelines, there are many restrictions for the NRIs to invest in the Indian market. Here are few important things to take care of:

  • An NRI is not allowed to hold more than 10% of the paid capital of an Indian company.
  • NRIs are allowed to invest in IPO i.e. The initial public offers of the Indian companies on both bases:
  1. Repatriation – Repatriable  Demat Account

It is the account where an NRI can hold securities which are purchased through the money that is repatriable.  When an NRI sold any share, the money will automatically have processed to your NRE Account.

  1. Non-Repatriation – Non-Repatriable Demat Account

It is an account where an NRI can hold securities using money which is not repatriable. Sale proceeds will go to the NRO account.

  1. Insurance Plans for The NRIs

Complete Guide to Term Insurance

1st Case- You already have a Term Insurance Plan

In this case you need to inform your insurance company that you are shifting abroad otherwise your insurance plan will not be valid for minimum of 2 to 3 years.

2nd Case- Planning to buy a Plan

In this case it is suggested to buy a plan in INDIA itself this is suggested because there can limitations of the benefits of the plan if it is for NRI, and hence you will be deprived of those benefits. so, it is suggested to buy a plan in India itself

3rd Case – Planning to buy One more Policy when settled in Abroad

Compare for a policy and plan in the new host country itself.  There is no need to buy from India as you would need to come to India for a health checkup when you buy a policy in India.

Leaving India and becoming a citizen of new country comes with its own pros and cons. There is no perfect country in this world. However with proper research and planning you can save yourself from lots of hassles.