Are you soon taking a flight to abroad?

There are a few challenges that can interrupt your journey on the New Year (2019) eve. They are majorly concerned with the banking, insurance, PPF, attorney and PIS account. Despite having a valid visa and passport, you may face delays. So, it’s recommended to go through the checklist of these challenges (mentioned in the form of questions). You’ll get some valuable advice to overcome them.

1. How do you transact?

It’s a crucial question to ask by self. The Reserve Bank of India disallows transactions through a regular bank account. So, you must be ready to combat that challenge through an NRO/NRE account. It’s suggested to visit your bank and do the necessary formalities, like filling a form, attaching a photograph with a copy of your passport and visa. What benefits you’ll get are:

• Can open a joint account with a resident or non-resident.
• Power of Attorney can operate on your behalf.
• Income earned from India can be deposited in it.
• Can pay EMIs and do other investments.
• It’s a non-repatriable account, which means that its principal amount can’t be taken abroad. However, income and interest can be transferred /withdrawn.
• Can remit upto $1 million.
• Can transfer amount to another account.
• Can transfer domestic earnings from rent, interest, dividend into foreign (FCNR) account.
• Can get same interest rate as on the regular saving account.
• TDS is deducted at the pervasive rate.
• NRE account requires no tax to pay off on the interest earned on income from India.

2. Do you have PIS account?

If you want to invest in equities, mutual funds or stocks, you must have a portfolio investment scheme (PIS) account on repatriation basis. Besides, you should have an NRE account to trade off. If you want to invest on a non-repatriation basis, the NRO account should be opened.

Citizens have to open Demat account for investing in such kinds of schemes. If you would have it before turning into an NRI, open a PIS account. Follow the KYC norms. Transfer your share or equities into it. Subsequently, don’t forget to close your Demat account. Otherwise, you have to face off several challenges to withdraw that amount.

3. Are you insured?

It’s a norm to buy an insurance policy if you’re going abroad.  The right time to buy a policy is before leaving India. Otherwise, you’ll be caught in the lengthy processing. What points you should keep in mind are:

• Death cover policy is valid across the globe, if you’re taking.
• If you prefer the health insurance policy, you can claim a medical cover in India.
• Read the instructions or terms and conditions carefully.
• In case you already have a term insurance, get it updated with your residential status. Otherwise, its validity would be disturbed.

4. Do you have an attorney?

Once you shift to abroad, it’s very difficult to take care of your financial and property issues in person. That’s why you should appoint a person who could take charge on your behalf. Always remember that there are two kinds of POA-General POA and Specific POA. For more clarification, you should consult about it with a legal advisor or a solicitor. Thereafter, entrust the authority while specifying the delegated responsibilities. Once you have appointed the POA, inform the bank about the same via a letter. He would be the authority who can:

• Operate your bank account
• Take care of your property management
• Manage tenants
• Sign tax forms and cheques

5. Do you have a PPF (Public Provident Fund) account?

If you are managing it before turning into the NRI, turn it into a non-operational one.  The NRIs can’t operate it. Whatever amount you have in it, transfer it into the NRO/NRE account. This is how you can keep it active.

No new PPF account is permissible.