What happens to credit cards when you become an NRI?

[xiddy]

I am in the process of converting my bank accounts to NRO and opening NRE accounts. Now branches keep telling me that my credit cards will be closed and that I need to apply for a new FD backed credit card with them. But then I see this on their website:



So which one is it?

Customer service is clueless as always.

 

[Dragon_slayer]

Your cards will be closed. As cards are only provided to Indian residents

 

[SSV]

I am in the process of converting my bank accounts to NRO and opening NRE accounts. Now branches keep telling me that my credit cards will be closed and that I need to apply for a new FD backed credit card with them. But then I see this on their website:



So which one is it?

Customer service is clueless as always.

They don't have consistent answers for these kind of things ... every Tom, Dick and Harry interprets this rule their own way ..

Practically speaking...

1) If your stay abroad is short term like 2 to 3 years, just leave them as it is and use them while you visit India and pay thru some family bank accounts.

2) If your stay is going to be long term / unknown amount of time then close the bloody cards and have fun abroad...

Nothing happens , if you keep your Cards after you become NRI, max they can do : they can cancel your cards ...

 

[coolguy1]

I have friends who moved abroad and still use their credit cards for better rewards.

Some friends who are living abroad, came to India for a trip, applied for a card and it got approved as well!

Overall, as SSV mentioned, the worst they can do is close your card so if you really want one, you can get one.
If you get one and you're going abroad, you can keep it and shouldn't be an issue.

 

[Zacobite]

I am in the process of converting my bank accounts to NRO and opening NRE accounts. Now branches keep telling me that my credit cards will be closed and that I need to apply for a new FD backed credit card with them. But then I see this on their website:



So which one is it?

Customer service is clueless as always.

CCs will change when you change your bank status.. However it is not illegal to continue to use them.. Retain for as long as you want.. Open NRI account in a diff bank... In case of same bank they may insist on the change.. NRI is still an I.. so nothing to worry..If you are permanently / long term moving then you should get the changes done.. Short term moves should be fine to retain.. if banks find out they will block the cc.. usage of card for inr transactions is recommended.. only fx transactions also raises a flag... All this is only if absolutely necessary.. else follow protocol and get cards chgd.. which is the right way

 

[RAMESH BABU N]

Legally speaking,

On attaining the NRI status, one should inform his/her Bank for CONVERSION of all domestic accounts into NR accounts. This includes CCs. Failing which, suitable action can be initiated against the said accounts n account holder (now an NRI).

In practice, if individuals are not following the above guidelines and are happy with such practices, it's their choice. They are playing with GOI guidelines - which might be held against them in future.

Why take a risk ? Always be on the safer side of the law. More so, if you are an NRI and staying abroad.

 

[Zacobite]

Legally speaking,

On attaining the NRI status, one should inform his/her Bank for CONVERSION of all domestic accounts into NR accounts. This includes CCs. Failing which, suitable action can be initiated against the said accounts n account holder (now an NRI).

In practice, if individuals are not following the above guidelines and are happy with such practices, it's their choice. They are playing with GOI guidelines - which might be held against them in future.

Why take a risk ? Always be on the safer side of the law. More so, if you are an NRI and staying abroad.

agree 100% true that

 

[ThriftyPlasticPundit]

you are legally obliged to inform bank and the cards will be ( in most cases ) closed, you have accepted the tcs as Indian resident for each card.

saving account isn't that problem, if you forgot to inform and will do so in future, considering banks won't close the account over email and you have to be physically in bank.

credit cards are different.

 

[sxchzy]

take a card overseas and spend via it
not a big deal

 

[Dragon_slayer]

Your cards will be closed. As cards are only provided to Indian residents

Just to clarify this, banks by itself wont close your card or anything. You have to provide residence change documents and only then they start all this process.

By default there is no way for bank to know that you have changed your residence nor do they care

 

[xiddy]

CCs will change when you change your bank status.. However it is not illegal to continue to use them.. Retain for as long as you want.. Open NRI account in a diff bank... In case of same bank they may insist on the change.. NRI is still an I.. so nothing to worry..If you are permanently / long term moving then you should get the changes done.. Short term moves should be fine to retain.. if banks find out they will block the cc.. usage of card for inr transactions is recommended.. only fx transactions also raises a flag... All this is only if absolutely necessary.. else follow protocol and get cards chgd.. which is the right way

I have no intention of using the card abroad. I do wish to continue to use it for local purchases for my family and to use them for international lounge access. Unless I am not allowed to.

Legally speaking,

On attaining the NRI status, one should inform his/her Bank for CONVERSION of all domestic accounts into NR accounts. This includes CCs. Failing which, suitable action can be initiated against the said accounts n account holder (now an NRI).

In practice, if individuals are not following the above guidelines and are happy with such practices, it's their choice. They are playing with GOI guidelines - which might be held against them in future.

Why take a risk ? Always be on the safer side of the law. More so, if you are an NRI and staying abroad.

I have already submitted an application to the banks to update my residential status.

Just to clarify this, banks by itself wont close your card or anything. You have to provide residence change documents and only then they start all this process.

By default there is no way for bank to know that you have changed your residence nor do they care

They are aware of it. I submitted a request to convert all my accounts to NRO and notified the banks where I don't hold an account that my residential status has changed. I guess no further action is required from my end. I am certainly not opening a 5L FD per card to reissue them. They can close it if they want😂

 

[ThriftyPlasticPundit]

Just to clarify this, banks by itself wont close your card or anything. You have to provide residence change documents and only then they start all this process.

By default there is no way for bank to know that you have changed your residence nor do they care

thats how it works worldwide, i could surrender my citizenship and bank won't know anything and continue dealing and use credit cards.

You can purchase property and land because India has over 100 types of id cards. The same applies to other countries; it's based on self-declaration. However, if the government discovers otherwise, you could face hefty fines or even jail time, especially if the judge is not cooperative.

 

[plastikman]

I am in the process of converting my bank accounts to NRO and opening NRE accounts. Now branches keep telling me that my credit cards will be closed and that I need to apply for a new FD backed credit card with them. But then I see this on their website:



So which one is it?

Customer service is clueless as always.

You can transfer your Amex cards to new country of residence.

 

[krishc]

what if you've an outstanding home loan or car loan ? what happens to the status of that ?

 

[Zacobite]

what if you've an outstanding home loan or car loan ? what happens to the status of that ?

u have to pay off.. or continue paying.. from nre/nro account

 

[nrj1007]

What about add on cards?

 

[sxchzy]

what if you've an outstanding home loan or car loan ? what happens to the status of that ?

keep an autopay mandate from resident acc
and keep adding funds to that
bank neither has the capacity nor the capability to find out whether it is a nre account or not

 

[SSV]

what if you've an outstanding home loan or car loan ?

outstanding balance will continue and your obligations towards these loans will continue...

what happens to the status of that ?

status quo ...

 

[krishc]

outstanding balance will continue and your obligations towards these loans will continue...


status quo ...

ok
no declaration or NRE/NRO conversion etc will be needed, right ?

 

[RAMESH BABU N]

These rules change quite often on a year-to-basis. NRI status, Forex Currency holdings - by Resident Indians while in India and while abroad while travelling, limits on expenses abroad......

It is better n safer to look into the relative websites and comply than to depend blindly on the incorrect/stale experiences of TF members - which may be risky.