Non Resident of Indian (NRI) can not open any type of account as per rule but if a account holder subsequently becomes NRI during the currency of the account, the account may be continued till its maturity on a non-repatriation basis. Such account shall not be extended beyond the maturity period, no interest shall be paid after maturity in such cases.
As per rule no. 10, Note 1 of Post Office Saving Bank (CBS) Manual- 2021, it is clarified that only a resident citizen of India can open account in Post Office; there is a provision is also mentioned there regarding the condition of the account holder who opened an account in Post Office but he/she becomes Non resident of Indian (NRI), a question arise here that what he/she can do with the account in this case?
There are two option in this case:
- First one is the account holder may close the account.
- The second one is the account holder may continue the account till its maturity on a non-repatriation basis (the account/certificate can not be converted to foreign country or can not be exchange into foreign currency).
What if such account could not closed on maturity?
Well, In that case, such account shall not earn any interest after maturity.
"You are your own biggest Asset" (W B)
Some of the F&Q related to this topic are as under-
Q: Can an NRI open account in post office?
A: No
Q: Can an NRI continue account in Post Office after becomes Non Resident of Indian?
A: Yes but conditioned.
Q: What are the conditions for the account which was opened by Indian but later than becomes NRI?
A: Condition One: The account may be closed.
Condition two: The account may be operated till its maturity as such account shall not earn any interest after maturity.
Q: Where is the departmental ruling regarding account opened in Post Office by NRI?
A: Ruling is available at India Post website (www.indiapost.gov.in)
Kindly refer rule 10 of POSB (CBS) Manual -2021 in this matter.
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