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Saving Account not yet closed or convert to NRO

Gurminder (Supervisor) (21 Points)

18 May 2023

I am living in Dubai, UAE from the last 7 years but I didn't closed or convert my normal saving account so please advise if it is ok or what I should do?

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Pranjal Gupta (141 Points)
Replied 18 May 2023

If you have been living in Dubai for the past 7 years and still have a normal savings account from another country, it's advisable to review the terms and conditions of that account and understand any potential implications. Here are a few points to consider:

Resident Status: Depending on your residency status in Dubai, you may have certain obligations and restrictions regarding foreign accounts. For example, if you are considered a tax resident in Dubai, you may need to report your global income and assets to the appropriate authorities. Consult with a tax advisor or local regulatory agency to understand your obligations.
Foreign Account Reporting: Some countries have requirements for their residents to report foreign financial accounts, such as the Foreign Account Tax Compliance Act (FATCA) for US citizens. Ensure that you comply with any reporting obligations in your home country.
Currency Exchange and Conversion: If your savings account is denominated in a foreign currency, you may want to consider converting it to the local currency (United Arab Emirates Dirham - AED) to avoid potential exchange rate risks and fees associated with currency conversion.
Banking Regulations: Familiarize yourself with the banking regulations in Dubai, UAE, regarding foreign accounts. Some countries may have restrictions on the operation of foreign accounts, and it's important to ensure compliance with local laws.
Consolidation and Convenience: Depending on your financial goals and needs, you might find it beneficial to consolidate your banking activities by opening a local savings account in Dubai. This can offer convenience, easier access to funds, and potentially better integration with local financial services.

It's strongly recommended to consult with a financial advisor or a local banking professional who can provide guidance based on your specific circumstances and the regulations in Dubai, UAE. They will be able to provide accurate information and help you make informed decisions regarding your savings account.

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