What happens to credit cards when you become an NRI?

[RAMESH BABU N]

REMEMBER

That service industry involves human intervention at almost every stage. And, humans decide and permit or disallow based on their moods, perceptions and comprehension/understanding of the relevant rules.

What is applicable or permitted yesterday or today may not be valid in the next one hour. Extremely dynamic n fluid.

So, to the practical extent possible, let us adhere to the extant rules n regulations applicable on the day. Like stock market rates.

Be vigilant n be informed with correct, current n applicable rules n regulations. And, keep a copy of the same - if possible - which may be useful if a dispute arise.

 

[SSV]

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

First thing, if you want to be perfect and law obeying citizen ,which we should all…
1) inform all the banks / financial institutions about your change in residential status.( by way of declaration) . This declaration can be within reasonable amount of time ( say 3 to 6 months) after your residential status was changed…

2) Bank / financial institution will advise you of what changes are needed for your financial products..and change them accordingly…
( Here the actual drama begins that our beloved @RAMESH BABU N ji fully aware of)
Every banker will interpret the rules as if banking industry is like a cottage Industry)

3) what I was saying was, your home loan and car loan stand still and had to be paid …thru an Indian account either resident / nre.. and there won’t be any new conversion specifically for these directly. May be they indirectly map via your savings account as nre. It all depends on the banks and how sophisticated their systems are

Point no 2 is the main thing and God knows when India could standardise these rules and disseminate the rules / information across industry and to the lowest level of the pecking order…

 

[RAMESH BABU N]

Not only in Banks, rules are implemented across many sectors, by many implementors, in many countries, in many different times - in totally different ways.

In 16 US airports, for ex, where we travelled, in only 2 airports, the security did not allow Ponds talcum powder and Eyetex Kajal. All domestic flights, no immigrations. Methi seeds are permitted in immigration - but had stopped in a domestic flight. In both casrs, we had to escale it to the Senior Security guys to get them cleared.

Such things happen everywhere. In India, people listen to logic. In many countries, they do not apply logic or intelligence.

 

[RAMESH BABU N]

Intepretation differs.

Once in US, a stupid Immigration ladyy did not allow personal medicines - all leading drug maker brands with due prescriptions n proof of purchases - as she thinks that all such prescriptions are to be co-prescribed by an American doctor. How can we have access to an American Doctor BEFORE we are cleared to enter USA ?

I got furious. That was our 3rd visit - previous 2 visits were trouble free. I again had to escslate it 2 levels up. Had to waiy for 1 hour extra - after a near 28 hours flights. Got it cleared.

Rules are the same n did not change in that one hour.

Wherever humans are involved, interpretation, understanding n application change - often even drastically - upto even 180 degrees.

 

[SSV]

Not only in Banks, rules are implemented across many sectors, by many implementors, in many countries, in many different times - in totally different ways.

In 16 US airports, for ex, where we travelled, in only 2 airports, the security did not allow Ponds talcum powder and Eyetex Kajal. All domestic flights, no immigrations. Methi seeds are permitted in immigration - but had stopped in a domestic flight. In both casrs, we had to escale it to the Senior Security guys to get them cleared.

Such things happen everywhere. In India, people listen to logic. In many countries, they do not apply logic or intelligence.

Intepretation differs.

Once in US, a stupid Immigration ladyy did not allow personal medicines - all leading drug maker brands with due prescriptions n proof of purchases - as she thinks that all such prescriptions are to be co-prescribed by an American doctor. How can we have access to an American Doctor BEFORE we are cleared to enter USA ?

I got furious. That was our 3rd visit - previous 2 visits were trouble free. I again had to escslate it 2 levels up. Had to waiy for 1 hour extra - after a near 28 hours flights. Got it cleared.

Rules are the same n did not change in that one hour.

Wherever humans are involved, interpretation, understanding n application change - often even drastically - upto even 180 degrees.

Please do not generalise ... and dilute the subject..
lets focus on banking here

One simple example:

1) If you call and ask same question to an Indian Bank Customer support executives., you get 10 different answers from different executives.. and that to very contrary... pathetic.. is the least word I can use
THis wont happen in any advanced world generally... It may happend rarely ...

this is enough .. how bad the situation is in Indian Banking industry..
Rules varies according to whom you talk .. that too drastically... no responsibility / ownership at all from the banks.

 

[RAMESH BABU N]

Please do not generalise ... and dilute the subject..
lets focus on banking here

One simple example:

1) If you call and ask same question to an Indian Bank Customer support executives., you get 10 different answers from different executives.. and that to very contrary... pathetic.. is the least word I can use
THis wont happen in any advanced world generally... It may happend rarely ...

this is enough .. how bad the situation is in Indian Banking industry..
Rules varies according to whom you talk .. that too drastically... no responsibility / ownership at all from the banks.

Basically because they are NOT qualified bankers - but doing bank jobs.

Every Bank Employee - with 6 months experience - is eligible to write JAIIB and CAIIB exams - which test their knowledge in banking n other related/connected subjects - accountancy, banking, economics, various Acts - like NI Act, BR Act, Partnership Act, Stamp Act.... Around 32 Acts.

I am sure NONE of your so called Agents, or Executives, must have even heard of these things - leave alone passing these exams.

Those who clear those tough exams are Bankers. Not every other chap who wears a tie and selling products somehow to gullible customers.

Next time you meet someone (agents/executives/team leaders/RMs or even BMs) from your fav bank, just ask him about his qualifications.

 

[SSV]

Basically because they are NOT qualified bankers - but doing bank jobs.

Every Bank Employee - with 6 months experience - is eligible to write JAIIB and CAIIB exams - which test their knowledge in banking n other related/connected subjects - accountancy, banking, economics, various Acts - like NI Act, BR Act, Partnership Act, Stamp Act.... Around 32 Acts.

I am sure NONE of your so called Agents, or Executives, must have even heard of these things - leave alone padsing these exams.

Those who clear those tough exams are Bankers. Not every other chap who wears a tie and selling products somehow to gullible customers.

Next time you meet someone (agents/executives/team leaders/RMs or even BMs) from your fav bank, just ask him about his qualifications.

understand sir...
but the thing is when a bank employee who is interacting with CUSTOMER and givinig valuable response to the query, it is BANK'S responsibility to employ such people who provides correct information...
It is not customers responsibility to ask a bank employee if he is eligible to write JAIIB and CAIIB exams ...blah blah...

 

[RAMESH BABU N]

Buyers beware (for non-Bankers).

Caveat Emptor (for Bankers).

both mean the same.

 

[SSV]

Buyers beware (for non-Bankers).

Caveat Emptor (for Bankers).

both mean the same.

At the end of the day..., we need to call spade a spade... whatever it is..
unfortunately it is not coming from an experinced professional... except for this . everything else is coming... 😀

 

[Lorddiesel]

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.


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


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😂

NRIs are allowed to hold International Credit Cards from all Indian Banks.
Don't believe any rubbish on the internet, RBI order here -

Issue of International Credit Cards to Non Resident Indians (NRIs)/Persons of Indian Origin (PIOs)A.P. (DIR Series) Circular No.59 (Dec 9, 2002) RBI

https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/33116.pdf

14. International Credit Cards

Authorised Dealer banks have been permitted to issue International Credit Cards to NRIs/PIO, without prior approval of Reserve Bank. Such transactions may be settled by inward remittance or out of balances held in the cardholder’s FCNR (B) / NRE / NRO Accounts.

Reserve Bank of India