NRI Credit Cards: Types, advantages, eligibility and software course of defined | Mint

Non-resident Indians (NRIs) could also be dwelling overseas however a overwhelming majority of them proceed to have monetary obligations in India. An NRI bank card can be a great tool for them to handle their bills in India. A bank card issued in India can even assist NRIs make funds throughout their travels to their dwelling nation. With this, NRIs can keep away from utilizing playing cards, that are issued overseas, in India, thus slicing down on overseas transaction charges. Here is a information on NRI bank cards, its sorts and advantages.

What is an NRI bank card and what are its sorts?

An NRI credit card is issued to non-resident Indian residents by Indian banks primarily for utilization of their dwelling nation. It can be utilized for transacting each in on-line and offline modes identical to within the case of bank cards issued to resident Indians. Banks supply Non-Resident External (NRE)/ Non-Resident Ordinary (NRO) financial institution account-based bank cards for NRIs.

While NRO account-based bank cards can be utilized just for home transactions, NRE account-based bank cards will be utilised for each home and worldwide transactions. But to get the bank card, the shopper needs to be current on the financial institution’s department throughout the card software course of.

You can apply for an NRI bank card by visiting your financial institution’s department in India or abroad and submit the applying kind with the required paperwork. Some banks, nonetheless, require the NRI to be current in India throughout the card software course of. These bank cards are additionally issued towards NRE/NRO mounted deposits (FDs) held by NRIs.

What are the advantages of NRI bank cards?

NRI bank cards supply a bunch of benefits. NRIs could make on-line funds with the choice to pay each in Indian and worldwide currencies. But worldwide transactions appeal to overseas alternate conversion expenses. These bank cards additionally supply entry to worldwide ATMs the place NRIs can withdraw money within the native foreign money.

But banks levy withdrawal price and overseas alternate conversion expenses for utilizing worldwide ATMs. NRI bank cards supply many of the advantages which might be obtainable to home bank cards. You can accumulate rewards and earn cashbacks on home (India) transactions made on NRI bank cards. You may also avail unique airline partnerships that supply advantages resembling lounge entry, bonus miles and precedence check-in. Leading banks permit NRIs so as to add their relations as supplementary cardholders.

How concerning the software course of?

NRIs ought to have a sound NRE or NRO account with the cardboard issuing financial institution to get the bank card. The major cardholder must be 21 years previous. But some banks concern playing cards for even those that are solely 18 years previous.

Here is the record of paperwork that it’s important to undergo avail an NRI bank card:

If you’re availing the NRI bank card towards your NRE/NRO FDs, the credit limit is usually capped at a sure share of the deposit quantity—normally at 80%. Some banks have set a minimal FD restrict and permit solely particular person FDs for availing the bank card. The NRI bank card eligibility standards differs from financial institution to financial institution and is normally decided by components resembling revenue, employment and monetary historical past of the shopper.

An NRI bank card is kind of helpful for managing bills in India. But select it solely in case you are a frequent traveller to your private home nation and have recurring bills that contain funds within the native foreign money (Rupee). A great NRI bank card ought to have excessive worldwide acceptance, zero foreign exchange markup, glorious rewards programmes and fast buyer help.

Allirajan M is a journalist with over 20 years of expertise. He has labored with a number of main media organisations within the nation and has been writing on mutual funds for practically 16 years.