NRI Credit Cards: Types, benefits, eligibility and application process explained

Non-resident Indians (NRIs) may be living abroad but a vast majority of them continue to have financial obligations in India. An NRI credit card will be a useful tool for them to manage their expenses in India. A credit card issued in India will also help NRIs make payments during their travels to their home country. With this, NRIs can avoid using cards, which are issued abroad, in India, thus cutting down on foreign transaction fees. Here is a guide on NRI credit cards, its types and benefits.

What is an NRI credit card and what are its types?

An NRI credit card is issued to non-resident Indian citizens by Indian banks primarily for usage in their home country. It can be used for transacting both in online and offline modes just like in the case of credit cards issued to resident Indians. Banks offer Non-Resident External (NRE)/ Non-Resident Ordinary (NRO) bank account-based credit cards for NRIs.

While NRO account-based credit cards can be used only for domestic transactions, NRE account-based credit cards can be utilised for both domestic and international transactions. But to get the credit card, the customer has to be present at the bank’s branch during the card application process.

You can apply for an NRI credit card by visiting your bank’s branch in India or overseas and submit the application form with the required documents. Some banks, however, require the NRI to be present in India during the card application process. These credit cards are also issued against NRE/NRO fixed deposits (FDs) held by NRIs.

What are the benefits of NRI credit cards?

NRI credit cards offer a host of benefits. NRIs can make online payments with the option to pay both in Indian and international currencies. But international transactions attract foreign exchange conversion charges. These credit cards also offer access to international ATMs where NRIs can withdraw cash in the local currency.

But banks levy withdrawal fee and foreign exchange conversion charges for using international ATMs. NRI credit cards offer most of the benefits that are available to domestic credit cards. You can accumulate rewards and earn cashbacks on domestic (India) transactions made on NRI credit cards. You can also avail exclusive airline partnerships that offer benefits such as lounge access, bonus miles and priority check-in. Leading banks allow NRIs to add their family members as supplementary cardholders.

How about the application process?

NRIs should have a valid NRE or NRO account with the card issuing bank to get the credit card. The primary cardholder should be 21 years old. But some banks issue cards for even those who are only 18 years old.

Here is the list of documents that you have to submit to avail an NRI credit card:

• Copy of valid passport
• Valid work permit/employment visa/admission letter
• Indian address proof: Passport/utility bill/Bank statement
• Foreign address proof: Utility bills (any one of the latest electricity, water, telephone bill)/Residence permit/Property tax)
• Permanent Account Number (PAN) card or in the absence of a PAN card, Form 60(if applicable)
• Foreign Account Tax Compliance Act (FATCA)declaration as applicable for the United States (US) or Common Reporting Standard (CRS) for the United Kingdom (UK), Canada or any of the more than 100 countries that have adopted CRS.
• Previous three months’ income statement or average quarterly balance.
• Indian reference address and Indian phone number.

If you are availing the NRI credit card against your NRE/NRO FDs, the credit limit is typically capped at a certain percentage of the deposit amount—usually at 80%. Some banks have set a minimum FD limit and allow only individual FDs for availing the credit card. The NRI credit card eligibility criteria differs from bank to bank and is usually determined by factors such as income, employment and financial history of the customer.

An NRI credit card is quite useful for managing expenses in India. But choose it only if you are a frequent traveller to your home country and have recurring expenses that involve payments in the local currency (Rupee). A good NRI credit card should have high international acceptance, zero forex markup, excellent rewards programmes and quick customer support.

Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.