"I have an account with Saraswat Bank, but every few months they hound me for KYC and the customer service is awful."
"I’m with PNB too, but even that hasn’t been smooth. I just want a bank with proper online access and real support."

If that sounds familiar, you’re not alone. NRE and NRO accounts are essential for NRIs, but most banks still haven’t figured out how to serve NRI clients properly. Between repetitive KYC requests, poor online platforms, missing OTPs, and unreliable UPI access, even large private banks leave NRIs stuck.

This blog breaks down:

• Which NRI bank accounts actually work

• How to use UPI with NRE/NRO accounts

• What is the minimum deposit requirement?

• How to skip the red tape with Settleline’s help

What Is an NRE or NRO Account and Why Does It Matter?

To send or manage money in India as an NRI, you must have either an:

• NRE (Non-Resident External) account – for foreign income, tax-free in India, fully repatriable.

• NRO (Non-Resident Ordinary) account – for income earned in India like rent or dividends, taxable, repatriation capped at $1 million/year.

⚠️ Pro tip: You cannot use your old Indian savings account legally once you become an NRI. And you need either an NRE or NRO account to use UPI in India.

Best NRI Bank Accounts in India (2025)

These banks consistently offer smoother onboarding, better UPI access, and fewer complaints from NRIs:

1. ICICI Bank

• Strong NRI support with video KYC setup

• UPI works for NRE/NRO accounts (PhonePe, GPay, Paytm supported)

• Reliable OTP delivery, even internationally

• NRE Fixed Deposits require a minimum deposit of ₹10,000-₹25,000 and offer interest rates of up to 2.5% on savings

2. HDFC Bank

• Widely trusted with established NRI operations

• Good UPI and SIP compatibility on NRO accounts

• But: Watch out for RM upselling and inconsistent support

• NRE Fixed Deposits require a minimum deposit of ₹10,000 for Metro/Urban branches (lower for semi-urban and rural) and offer interest rates of up to 2.5% on savings

3. IDFC First Bank

• Rated highly for app experience

• UPI works even with NRE accounts, rare and valuable

• Smaller network but digital-first and responsive

• NRE Fixed Deposits require a minimum deposit of ₹1,000 and offer interest rates of up to 7% on savings

Banks to avoid (based on real NRI feedback):

• Saraswat Bank – KYC harassment, poor digital UX

• Axis Bank, PnB – Frequent OTP and login issues, slow support

⚠️ Pro tip: Interest on NRE deposits is exempt from tax in India and freely repatriable

UPI for NRIs: What Works and What Doesn’t

UPI is a gamechanger, instant money transfer, accepted almost everywhere, and free. But for NRIs, the setup needs 3 things:

• A valid NRE or NRO account

• An Indian mobile number, with roaming or linked OTP access (some banks may accept international phone numbers)

• A bank that supports UPI on NRE/NRO accounts

Works well with: ICICI, HDFC, IDFC
Still broken at: Axis, Saraswat, most PSU banks. Stay away from small regional banks specially.

Choosing Between NRE and NRO: Quick Guide

• Sending foreign salary to India?

  • Use an NRE account, fully repatriable and tax-free in India.

• Receiving rental income, dividends, or selling Indian property?

  • Use an NRO account, required for Indian-sourced income and subject to Indian tax.

• Need to repatriate funds abroad?

  • If funds are from abroad: NRE account (no limits or taxes).

  • If funds are from Indian income: NRO account, but requires CA certification (Form 15CA/15CB) and is capped at $1 million/year.

Real Talk: Why Most Banks Still Fail NRIs

• OTP failures: NRIs abroad often don’t receive OTPs due to telecom dependencies.

• Repetitive KYC: Especially at PSU or co-op banks like Saraswat.

• Offline processes: Physical form submissions, visits to Indian branches, still common.

• Investment blocks: UPI/SIP/MF don’t always link cleanly with NRE/NRO accounts.

⚠️ Pro tip: Returning to India? Here's a simple checklist for Bank accounts, taxation, FEMA, and investment compliance

How Settleline Helps NRIs Set It Up Right The First Time

We’ve partnered with the most NRI-friendly banks in India. Our cross-border CAs and advisors simplify everything:

• Choose the right bank based on your location and purpose

• Assist with fast, digital account opening, it's okay if you don't have an Indian address or an Indian sim

• Enable UPI, repatriation, KYC and investment linking

• Provide required CA forms (Form 15CA/15CB) for tax compliance

Book a Free 10-Minute Consultation

Skip the confusion. Let Settleline help you get the right NRI banking setup, fast and compliant.