Open a US Bank account from India - No ITIN or SSN Required

Hello everyone,
If you are a freelancer, a remote worker, or you receive payment in USD to your Indian account, then you are losing markup fees because of the transfer (currency exchange).
Do you know that you can open a real US bank account, receive payment directly to that account, and hold your money in USD?
Yes, it's absolutely possible. As an Indian, you can open a digital US bank account using your Indian passport.
No SSN or ITIN is required.
As you all know, you cannot open a traditional US bank account without visiting the country physically. So I'm talking about a digital bank account, a fully functional, proper US bank account with all the features you get from a traditional bank and the same level of security. Your money will be insured by the FDIC up to $250,000.

I'm talking about the Utoppia digital bank account; its banking services are provided by Synapse Brokerage LLC, a registered broker-dealer and member of SIPC, and Lineage Bank, a member of the FDIC (accounts are provided by Synapse Brokerage LLC, and the deposits are held with Lineage Bank, Member FDIC).
Utoppia is just like a Fi/Niyo bank account.

Eligibility Criteria-
Anyone from the listed countries can open a Utoppia Bank account.
🇦🇷 🇦🇺 🇦🇹 🇧🇪 🇧🇷 🇨🇦 🇨🇿 🇨🇱 🇨🇴 🇩🇰 🇫🇮 🇫🇷 🇩🇪 🇮🇳 🇮🇪 🇮🇹 🇱🇺 🇲🇾 🇲🇽 🇳🇱 🇳🇿 🇳🇴 🇵🇹 🇸🇬 🇸🇰 🇿🇦 🇪🇸 🇸🇪 🇨🇭 🇬🇧 🇺🇸 🇻🇳
The minimum age requirement is 18 years old.

Document- Passport

How To Open-
Just click on the link here - https://utoppia.onelink.me/eWMt/TechnoFino
Download the app and open your US bank account within 10 minutes. All you need is your passport.



Benefits-
Zero maintenance US bank account
Free virtual debit card. You can add the virtual debit card to your Apple Pay (you must change your iPhone's region to US from India to use this feature).
Free instant money between one Utoppia and another Utoppia bank account
Wire transfer feature
ACH transfer feature
FDIC Insurance ($250,000)

This is the first and very important step you have to complete if you want to hold a US credit card in the future. You need a US bank account to pay your card bill.
***Consult your CA if you have any questions related to taxation.

 

[kirang]

I think they have stopped offering services, can anyone confirm?

 

[megabull]

@TechnoFino @gurbina I have a query.
Are resident individual Indians allowed to hold a foreign currency bank account outside India for investing outside India ? If yes, do you have any guide or reference link for the same ?

 

[theglobalinvestor]

@TechnoFino @gurbina I have a query.
Are resident individual Indians allowed to hold a foreign currency bank account outside India for investing outside India ? If yes, do you have any guide or reference link for the same ?

No. You can only invest/withdraw from/to Indian account via LRS. Check LRS rules on capital account transfers for investments abroad.

 

[megabull]

No. You can only invest/withdraw from/to Indian account via LRS. Check LRS rules on capital account transfers for investments abroad.

Thanks for the response @theglobalinvestor . Here is why i am asking.

Q6 suggests that it can be opened for LRS. But doesn't mention capital account transaction.

Reserve Bank of India

Q23 suggests no approval is needed

Reserve Bank of India

It's better to be sure, hence i'm checking. While my intention is to open only the Schwab international brokerage account, it has features (like debit card, etc) that RBI may want to call it a bank account. In that case, it's better to check if bank accounts are permitted outside India.

 

[TechnoFinoTechnoFino is verified member.]

Holding Bank account outside india is allowed only in few selected cases, read Q5 here - https://www.rbi.org.in/scripts/FS_FAQs.aspx?Id=69&fn=5

Q5. When can a resident individual open a foreign currency account outside India?

Answer: A resident individual can open a foreign currency account with a bank outside India in the following cases:

1) A resident student who has gone abroad for studies for the period of stay abroad. All credits to the account from India should be made in accordance with FEMA and the rules and regulations made thereunder. On the student’s return to India after completion of studies, the account will be deemed to have been opened under the Liberalised Remittance Scheme (LRS).

2) A resident who is on a visit to a foreign country for the period of stay abroad. The balance in the account should be repatriated to India on return of the account holder to India.

3) A person going abroad to participate in an exhibition/ trade fair for crediting the sale proceeds of goods. The balance should be repatriated to India within one month from the date of closure of the exhibition/ trade fair.

4) A resident individual, being an exporter, for realisation of full export value and receipt of advance remittance by the exporter towards export of goods or services.

5) The following persons for remitting/ receiving their entire salary payable to them in India:

1. A foreign citizen resident in India, who is an employee of a foreign company and is on deputation to the office/ branch/ subsidiary/ joint venture/ group company in India;
2. An Indian citizen who is an employee of a foreign company and is on deputation to the office/ branch/ subsidiary/ joint venture/ group company in India; and
3. A foreign citizen who is a resident in India and is employed with an Indian company.

6) For the purpose of sending remittances under the Liberalized Remittance Scheme.

but there are few other conditions under LRS, if you are planning to transfer money from india to US for investment purposes.
Reference link: https://www.rbi.org.in/scripts/FS_FAQs.aspx?Id=115&fn=5#Q23

Q 23. Whether prior approval is required to open, maintain and hold foreign currency account with a bank outside India for making remittances under the LRS?

Ans: No.

Q 4. Under LRS are resident individuals required to repatriate the income earned on investments abroad, over and above the principal amount?

Ans. The investor who has remitted funds under LRS can retain and reinvest the income earned from his investments made under the Scheme. However, the received/realised/unspent/unused foreign exchange, unless reinvested, shall be repatriated and surrendered to an authorised person within a period of 180 days from the date of such receipt/ realisation/ purchase/ acquisition or date of return to India, as the case may be.

 

[TechnoFinoTechnoFino is verified member.]

Thanks for the response @theglobalinvestor . Here is why i am asking.

Q6 suggests that it can be opened for LRS. But doesn't mention capital account transaction.

Reserve Bank of India

Q23 suggests no approval is needed

Reserve Bank of India

It's better to be sure, hence i'm checking. While my intention is to open only the Schwab international brokerage account, it has features (like debit card, etc) that RBI may want to call it a bank account. In that case, it's better to check if bank accounts are permitted outside India.

if you are looking to open international Schwab account, then got for it.... its allowed. They have permission from RBI to open accounts for Indian residents.

 

[theglobalinvestor]

Thanks for the response @theglobalinvestor . Here is why i am asking.

Q6 suggests that it can be opened for LRS. But doesn't mention capital account transaction.

Reserve Bank of India

Q23 suggests no approval is needed

Reserve Bank of India

It's better to be sure, hence i'm checking. While my intention is to open only the Schwab international brokerage account, it has features (like debit card, etc) that RBI may want to call it a bank account. In that case, it's better to check if bank accounts are permitted outside India.

Thanks for the response @theglobalinvestor . Here is why i am asking.

Q6 suggests that it can be opened for LRS. But doesn't mention capital account transaction.

Reserve Bank of India

Q23 suggests no approval is needed

Reserve Bank of India

It's better to be sure, hence i'm checking. While my intention is to open only the Schwab international brokerage account, it has features (like debit card, etc) that RBI may want to call it a bank account. In that case, it's better to check if bank accounts are permitted outside India.

The admin has given you a very comprehensive answer. Schwab is no problem. I have accounts with Schwab and IBKR. Just keep US estate tax in mind while investing with Schwab. I don't keep more than $60k and will typically transfer to IBKR when crossing $50k. I prefer Irish domiciled holdings with IBKR for the majority of my holdings. Also, beware new trump proposals of 5% remittance tax and 20% redemption TAX. US is an unpredictable environment right now and I would advise to tread with caution.

 

[megabull]

Holding Bank account outside india is allowed only in few selected cases, read Q5 here - https://www.rbi.org.in/scripts/FS_FAQs.aspx?Id=69&fn=5



but there are few other conditions under LRS, if you are planning to transfer money from india to US for investment purposes.
Reference link: https://www.rbi.org.in/scripts/FS_FAQs.aspx?Id=115&fn=5#Q23

Thanks for the response Sumant.

One last addon query - Does the below point enable to open bank account in US, so that the funds can be transferred there and then invested into various depository accounts ?

Reserve Bank of India - FAQs

Q5. When can a resident individual open a foreign currency account outside India?

Answer: A resident individual can open a foreign currency account with a bank outside India in the following cases:

6) For the purpose of sending remittances under the Liberalized Remittance Scheme.

 

[TechnoFinoTechnoFino is verified member.]

Does the below point enable to open bank account in US, so that the funds can be transferred there and then invested into various depository accounts ?

yes, basically almost everyone can open US bank account for investment purposes

 

[megabull]

yes, basically almost everyone can open US bank account for investment purposes

Thanks for confirming. I read through the requirement in FEMA link below and it seemed to be really confusing honestly.

Reserve Bank of India - Foreign Exchange Management Act Notification

Restriction on holding foreign currency account by a person resident in India:-

Save as otherwise provided in the Act or rules or regulations made there under, no person resident in India shall open or hold or maintain a foreign currency account:

Provided that a Foreign Currency Account held or maintained before the commencement of these Regulations by a person resident in India with special or general permission of the Reserve Bank, shall be deemed to be held or maintained under these Regulations:

Provided further that the Reserve Bank, may on an application made to it, permit a person resident in India to open or hold or maintain a Foreign Currency Account, subject to such terms and conditions as may be considered necessary.

5. Opening, holding and maintaining a Foreign Currency Account outside India:-

(A) Accounts of authorised dealers or their branches

(2) A branch outside India of a bank incorporated or constituted in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of carrying on normal banking business outside India, subject to compliance with the directions or guidelines issued from time to time by the Reserve Bank, and the regulatory authority in the country where the branch is located.

(D) For making Overseas Direct Investment

An Indian party may open, hold and maintain Foreign Currency Account abroad for the purpose of making overseas direct investments subject to the following terms and conditions:

1. The Indian party is eligible for making overseas direct investment in terms of Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 as amended from time to time
2. The host country regulations stipulate that the investment into the country is required to be routed through a designated account.
3. The account shall be opened, held and maintained as per the regulation of the host country.
4. The remittances sent to the account by the Indian party should be utilized only for making overseas direct investment into the Joint Venture/ Wholly Owned Subsidiary (JV/ WOS) abroad.
5. Any amount received in the account by way of dividend and/ or other entitlements from the subsidiary shall be repatriated to India within 30 days from the date of credit.
6. The Indian party should submit the details of debits and credits in the account on yearly basis to the designated AD bank with a certificate from the Statutory Auditors of the Indian party certifying that the account was maintained as per the host country laws and the extant FEMA regulations / provisions as applicable.
7. The account so opened shall be closed immediately or within 30 days from the date of disinvestment from JV/ WOS or cessation thereof.

Explanation: For the purpose of this regulation, the expression 'Indian party' shall have the same meaning as assigned to it in Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004.

(4) Resident individuals may open, maintain and hold foreign currency accounts with a bank outside India for making remittances under the Liberalised Remittance Scheme (hereinafter referred to as the “Scheme”). The account may be used for putting though all transactions connected with or arising from remittances eligible under this Scheme

The admin has given you a very comprehensive answer. Schwab is no problem. I have accounts with Schwab and IBKR. Just keep US estate tax in mind while investing with Schwab. I don't keep more than $60k and will typically transfer to IBKR when crossing $50k. I prefer Irish domiciled holdings with IBKR for the majority of my holdings. Also, beware new trump proposals of 5% remittance tax and 20% redemption TAX. US is an unpredictable environment right now and I would advise to tread with caution.

Thanks for the response man. Appreciate your wisdom on international investing. @TechnoFino I might have not been investing had i not been able to research on @theglobalinvestor 's site

 

[RDR]

@TechnoFino is it allowed to open a US bank account to receive US company RSU sale proceeds, and keep them in USD to further invest or transact in USD?

 

[TechnoFinoTechnoFino is verified member.]

@TechnoFino is it allowed to open a US bank account to receive US company RSU sale proceeds, and keep them in USD to further invest or transact in USD?

Yes, its allowed, but you have to invest the money in 180 days or transfer it to India.