Consequences of operating local savings account by NRI

As per the Foreign Exchange Management Act (FEMA) guidelines, an NRI cannot have a local savings account in his or her name in India. You must convert all your savings (money earned abroad) into an NRE or NRO account. Continuing to use the local savings account in India can attract hefty penalties. You need to inform your bank in case traveling abroad for an indefinite period to convert a savings account to NRE or NRO account as per usage. Opening an NRE or NRO account helps NRIs in multiple ways. For instance, you can transfer your foreign earnings to India in case you have family over here who is dependent on you. Also, income from India through any investments can be retained here