Open an NRI Savings Account


At a Glance

An alternate way to send money to India is through foreign currency cheques deposited in an Indian Bank.

There are several ways to transfer money to India and one of them is through foreign currency cheques. You can draw one from an overseas bank in foreign currency. The cheque should favour your bank account in India. On deposit, the funds get credited in Indian Rupees. The exchange rate considered is the one prevalent on the date of credit.


Features and Benefits

  • Crediting foreign currency cheques to your bank account is a convenient way of sending money to India. They’re an alternative to wire transfers.
  • You need to have a bank account in India.
  • Enclose a pay-in-slip with the cheque which mentions the beneficiary name and account number.

Process of collection

Cheques denominated in USD constitute a significant portion of foreign currency cheques. There are various ways for realising USD denominated cheques. Different banks have different collection arrangements. This depends on institutional arrangements they have in place.

There are three types of arrangements banks have. Time taken for transfer depends on the specific agreement.  

Final credit scheme: This is available for US dollar-denominated cheques. Funds are realised post realisation by the drawee bank in their Nostro account. This is a confirmed credit payment against the instrument.

Cash letter scheme: Here, presenting banks in India send cheques payable to corresponding banks (CBs) in USA. The CBs collect funds and present them to branches maintained in the US. Such accounts are also called NOSTRO accounts; funds received are of provisional credit.

Direct collection scheme: This is for foreign currency cheques that cannot be lodged under the above two schemes. Here the cheque is directly sent the drawee bank in USA. In this case, there is no risk of return.  For this reason high-value cheques are sent under this scheme.

Time to transfer: There is no specified time for the transfer. The time will depend on the collection method. Banks typically take 15 to 30 days for the collection of USD cheques. It may even go up to 45 days.

Open an NRI Savings Account


How to Apply

Open an NRI Savings Account

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Frequently Asked Questions

You can deposit the cheque in person or through a messenger. You can also send it to the branch by post or courier.

No. Visit the bank branch and submit the cheque at the counter. Tell the teller that it is a foreign currency cheque. Collect the counterfoil for reference in the future.

You need to submit a deposit slip with a cheque. You may also require an instruction letter. Here you need to mention the account number where the funds have to be credited.

Yes, cheques are subject to a minimum amount. The minimum amount differs for different currencies. For USD and GBP it is 10 for current account and 50 for a savings account.

Banks will charge a nominal amount for cashing foreign currency cheques. Usually, it is a certain percentage of the amount.

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