India residents moving to US residency must change accounts
In short
Indian parents who get US residency need to review their bank accounts, mutual funds and shares before moving. The source says India’s FEMA rules do not allow resident bank and demat accounts to be kept after moving abroad permanently.
It can affect how their savings and investments are handled.
What the reporting says
Indian parents getting US residency should review and modify bank, mutual fund and share investments before moving abroad on a permanent resident status. The source says India’s FEMA rules make it illegal to keep resident bank and demat accounts after becoming a permanent resident abroad, so accounts must be converted to non-resident status. It also says FATCA forms disclosing the overseas residential status should be filed.
Why it matters
The source says Indians taking up permanent US residency should review bank accounts, mutual funds, shares and other assets. It states that under India’s FEMA rules, resident bank and demat accounts cannot be held after moving abroad permanently and must be converted to non-resident accounts. It also says FATCA forms showing the foreign residential status should be filed, affecting how investments are maintained.