Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The rule
Your FEMA status changes when you move abroad for an uncertain period, and from that point a resident savings account is no longer permitted. The bank should redesignate it as an NRO account, which is meant for your Indian-source income. This is a FEMA requirement, separate from your income-tax status.
NRO plus NRE
Most NRIs hold two accounts: an NRO for Indian income (rent, dividends) and an NRE for foreign earnings they want to keep tax-free and fully repatriable. An FCNR deposit is an option for foreign-currency holdings.
Do it promptly — an example
Example: you take a job in Singapore and keep using your old resident savings account for a year — technically a contravention, and the account is not set up to receive your foreign salary cleanly. Redesignating to NRO and opening an NRE early avoids issues and makes repatriation simple later. The bank usually only needs your proof of NRI status and fresh KYC to convert the account — it is a quick form, not a new account number in most cases, so there is little reason to delay. Existing fixed deposits and mandates carry over. When you eventually return for good, you redesignate back to a resident account. Our NRI & FEMA service can guide the conversion.