Unfortunately, I recently learned that it is illegal under FEMA to continue using a resident account in India. I came to the US in 2020 and have been using my resident account ever since. I might have transferred up to 1 cr to my resident account to pay for my education loan and family support. I usually transfer funds from my US account to my HDFC resident account and use IMPS or UPI to pay the education loan or to others. I know I should convert it to an NRO or NRE account ASAP, but I am afraid to let my bank know since they might ask for a penalty. I am very much confused about what to do now. Any help would be appreciated. Also, I am interested in moving back to India in a few years and continue to want to send money to India. Should I open up NRO or NRE? 225K Nine years
Not a big deal. Just convert it. No penalty.
Close that account and open a new NRE/NRO. No fuzz, most of Desi public uses their Residents account including me for decade. IRS and IT department has much bigger fish to fry than to come to your tiny TDS withholding
Should I close it or convert it into NRO? I have an HDFC account?
I had mine in ICici, they easily converted to NRO and opened an NRE in addition. I closed all my other regular bank accounts and it was fine. You don't need to tell anything
I’m have transferred over 200k to in last 10-15 years. Didn’t convert to anything so far no issues. All the money went to parents n siblings. All transactions are legit except i didn’t convert to NRE/NRO account. Wonder what kind of penalty they will apply
Do you invest too from your resident account into pfs, mutual funds, etc?
Nope…all that money I send is to support few close family members and parent. Nasib hi kuch aisa hai.. mila to kuch nahi but have to support several family members. I chose to do support and not forced to…genuine cases.
It’s ok. Not a big deal. Just open NRE/NRO account and transfer into that going forward
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