Home ／ Insights on entering the Indian market
2026.03.24
India is one of the world's largest markets, with a population of over 1.4 billion, and its economic growth rate remains among the highest of major countries. Doing business in India makes opening a local bank account unavoidable.
In January 2025, the Reserve Bank of India (RBI) updated its FEMA regulations with amendments that promote cross-border rupee transactions. Procedures for NRIs (Non-Resident Indians) to manage investment accounts have also been simplified, and the environment for opening a bank account continues to steadily improve.
There is one point to settle before anything else. NRE and FCNR accounts can be opened only by non-resident Indians (NRIs) and people of Indian origin (PIO/OCI holders) (FEMA (Deposit) Regulations 2016, Schedule 1). Japanese expatriates who are not of Indian origin cannot open these accounts. Japanese-language explainers sometimes leave the distinction vague and present them as accounts "for expatriates," so take care.
This is the account Japanese expatriates actually use. Under FEMA, an individual who spent more than 182 days in India in the immediately preceding financial year and is living there for work counts as a resident, so an ordinary resident account can be opened. Salary is received and rent and living costs are paid from this account. Remitting money abroad additionally requires Form 15CA/15CB under the Income Tax Act.
This account is for managing income earned inside India (rent, dividends, pensions, and the like). Foreign tourists can also open one for up to six months with a passport and visa. For the period right after arrival, before the residency test is met, this account is the option to use.
An account for managing remittances from overseas, where the interest is 100% tax-free in India. Both principal and interest can be remitted abroad freely, but only NRIs and people of Indian origin can open one.
A fixed deposit account denominated in foreign currency, allowing deposits and withdrawals in currencies such as US dollars or euros. It is useful for those looking to avoid exchange rate risk.
The documents generally required are as follows.
Passport (original and copy), a valid visa, proof of address in India (such as a rental agreement), a passport-size photo, a PAN (Permanent Account Number) card or application form, and a foreigner registration certificate (issued by FRRO/FRO).
Thanks to the 2025 regulatory simplification, equity investment is now possible with only an NRE PINS account, and the separate NRO PINS account previously required is no longer necessary.
Banks that are convenient for Japanese companies and expatriates include major Indian banks such as SBI (State Bank of India), HDFC Bank, ICICI Bank, and Axis Bank, as well as the Indian branches of Japanese banks such as Mizuho Bank and MUFG.
Mumbai and Delhi In major cities such as these, a limited number of bank branches also offer service in Japanese. digital payments It is also important to choose a bank with consideration for UPI support.
Applying in person at a bank branch is the standard approach, but in recent years some banks have also introduced online applications (e-KYC). Opening an account usually takes about one to two weeks, though it can take more than a month if there are issues with the documents.
Nationals of Pakistan require prior approval from the RBI, and nationals of Bangladesh require a valid residence permit issued by the FRRO/FRO.
After opening the account, promptly set up UPI, activate net banking, and collect your debit card. UPI payments are the mainstream method in India, used widely from everyday purchases to business transactions.
As a tax consideration, interest on NRO accounts is subject to a 30% withholding tax in India. It is also necessary to check whether relief under the Japan-India tax treaty can be applied. a local accounting and tax partner Working together with such a partner is recommended.
A Japanese expatriate who is not of Indian origin opens an ordinary resident savings account once they qualify as a resident. For the period right after arrival, before the residency test is met, an NRO account can be used. NRE and FCNR accounts are reserved for non-resident Indians (NRIs) and people of Indian origin (PIO/OCI), so Japanese expatriates cannot open them.
You generally need a passport, a valid visa, proof of address in India, a photo, a PAN card or application form, and a foreigner registration certificate. If any documents are missing, the process will take longer, so it is important to have everything ready in advance.
In addition to major banks such as SBI, HDFC Bank, ICICI Bank, and Axis Bank, the Indian branches of Japanese banks such as Mizuho Bank and MUFG are also an option. In major cities, a limited number of branches offer service in Japanese. It is advisable to choose a bank with UPI support in mind as well.
Opening an account usually takes about one to two weeks, but it can take more than a month if there are issues with the documents. In recent years, some banks have also introduced online applications. It is safest to plan with some extra time in your schedule.
Interest on NRO accounts is subject to withholding tax in India. It is also necessary to check whether relief under the Japan-India tax treaty can be applied. Since this directly affects your tax burden, working with a local accounting and tax partner is recommended.
First, choose an NRE, NRO, or FCNR account according to your needs, gather the required documents, and then decide on a bank based on factors such as Japanese-language support and UPI compatibility. After opening the account, promptly set up UPI, activate net banking, and collect your debit card, and it is reassuring to confirm tax matters with an accounting and tax partner.
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