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SBI Introduces TAB-based Online Facility for Opening NRO and NRE Accounts.

Banking & Finance | Dated: 06 Jan 2025

On January 2, 2025, the State Bank of India (SBI), India's largest Public Sector Bank (PSB), introduced a TAB-based digital process that allows Non-Resident Indians (NRIs) to open Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts. This new system aims to make the account opening process faster and easier by using real-time digital verification and a paperless approach.

🎯 Key Highlights:

  • - The initiative was launched by SBI Chairman Challa Sreenivasulu (C.S) Setty and is available at all SBI branches in India and select foreign offices.
  • - The new TAB-based system allows for real-time account activation, eliminating the need for physical documents. This helps activate accounts quickly, reducing delays.
  • - The system leverages digital tools to verify documents and enhance the convenience and speed of opening accounts, making the process more efficient and simple.

💡 Other Important Facts:

  • (i) The NRE account is designed for Non-Resident Indians (NRIs) to manage their income in Indian Rupees (INR), offering various deposit options such as Savings, Current, Recurring, and Term Deposits with a tenure range of 1 to 10 years.
  • (ii) Interest earned on NRE accounts is tax-exempt, balances are not subject to wealth tax, and accounts can be opened jointly with a resident relative on a 'former or survivor' basis.
  • (iii) The NRO account is designed for NRIs to manage income earned in India, such as rent and dividends, offering Savings, Current, and Fixed Deposit options in Indian Rupees (INR) with taxable interest and limited repatriation of up to USD 1 million per financial year.

📚 Test Your Knowledge:

Which bank recently introduced a TAB-based online facility for opening NRO and NRE accounts?

Correct Answer: SBI

🚀 Quick Recap: