FEMA warning for NRIs: Wrong bank account can cost you 3x balance in penalties

Thousands of Indians who move abroad for work, business, or education continue operating their resident savings accounts as if nothing has changed. What most do not realise is that the moment your residential status changes to Non-Resident Indian, continuing to hold that account without converting it is a direct violation of India's Foreign Exchange Management Act — FEMA. The penalties are not symbolic. They are financially significant and compound every single day you delay.The law is clear: Once you qualify as an NRI under FEMA, your resident savings account must be either closed or converted to an NRO account. There is no grace window for ignorance. Still using your Indian savings account after moving abroad? It is illegal and the penalties are steep