Short answer: Yes, most NRIs can keep Indian credit cards while living abroad. However, there are important rules, practical steps, and smart choices you must make to ensure the card remains useful and legal. This guide explains the basics of the RBI, how banks treat NRI cardholders, payment and KYC practicalities, the best cards for NRIs traveling to India, and common mistakes to avoid. You’ll get a handy checklist explaining how NRIs can keep Indian credit cards while living abroad.
Can NRIs keep Indian credit cards while living abroad legally? RBI, NRE/NRO, and how banks see NRIs
The Reserve Bank of India (RBI) permits NRIs to maintain Indian banking relationships, including credit cards. But you need to settle the credit card charges from permitted sources such as NRE, NRO, or inward remittances. RBI guidance clarifies that credit card dues for NRIs can be settled from balances held in NRE/FCNR or NRO accounts.
What this means practically:
- You must have a valid Indian bank relationship (NRE or NRO account is the simplest route).
- Banks will perform KYC based on your NRI status and may ask for overseas address proof, passport/visa/OCI, and an Indian correspondence address.
- If your residency status changes, inform the bank. Failure to update KYC can lead to card limits being frozen or (rarely) closure.
Bottom line: keeping the best Indian credit card for NRIs who travel to India is legally OK, but it works cleanly if you maintain an NRE/NRO account and keep your KYC up to date.
Can NRIs apply for a new Indian credit card while living abroad?
Short answer: sometimes and it depends on the bank.
- Some banks allow NRI applications online (through NRI banking portals) if you already hold an NRE/NRO account with them. ICICI and other major banks market NRI credit card options and guidance.
- Other premium cards are invite-only or require high-net-worth relationships in India; those may not be open for a straight online NRI application.
- If you’re visiting India, applying in person removes friction, but it’s not mandatory for everyone.
Practical step: if you want a new Indian card, check the bank’s NRI section or call their NRI helpdesk. If you already have an Indian bank account, you have a much higher chance of approval with fewer KYC headaches.
How to pay your Indian credit card bill when you’re abroad
This is the single most important operational question. Do this right and your card stays active; do it wrong and you risk bounce charges and credit damage. Here’s how to pay Indian credit card bills from the USA or other countries:
H3: Use your NRE or NRO account (best practice)
- Link your Indian credit card to your NRE/NRO account and pay bills from there. RBI explicitly allows settlement of credit card charges from these non-resident rupee accounts.
- NRE is best if you want remittable INR (it’s funded from foreign income). NRO is best if you’re paying from Indian domestic receipts (rent, dividends).
Alternative payment routes
- You can also use NEFT/RTGS from any Indian bank account or route a foreign bank transfer via remittance services to your NRE account and then settle the card.
- Many NRIs use payment services (Wise, Remitly, bank wire) to move USD → INR, deposit to NRE, then pay the card. Avoid ad-hoc remittances with poor rates — they defeat the purpose.
Automate and avoid missed payments
- Set up autopay from your NRE/NRO account to avoid missed payments (which can damage Indian credit scores even if you live abroad).
- Ensure your bank has your overseas mobile/email for OTPs and statements.
Will a bank cancel or freeze an Indian credit card if you move abroad?
Short answer: Usually not, if you inform them and maintain accounts, but banks do enforce KYC.
What often happens in practice:
- Banks may flag accounts for re-KYC when they detect an overseas address. If you don’t respond, limits may be restricted.
- Some premium cards may be reassessed (especially invite-only ones) based on your changed relationship with the bank.
- If you don’t use the card for long periods and don’t respond to bank notices, the card can be closed for inactivity.
Do this: update your KYC, link to an NRE/NRO account, and make small periodic transactions (even ₹1,000–₹2,000/month) to show activity.
Which Indian credit cards work best for NRIs who travel to India?
Not all cards are equal due to acceptance, forex markup, lounge access, and transfer partners matter. Here are cards (and feature patterns) NRIs should look for; I’ve listed the load-bearing facts and cited the banks where appropriate.
1) Zero or low forex markup (save real money)
If you use a card abroad or book flights/hotels in foreign currency, credit card with forex markup matters. RBL Bank’s World Safari advertises 0% foreign currency markup, which removes the typical 3–3.5% foreign transaction surcharge and can save you significant fees.
2) Premium travel cards with low markup
Cards like HDFC Infinia advertise a lower foreign-currency markup (HDFC states 2% as the card’s foreign currency markup in their public benefits section). If you value concierge, high reward rates, and wide lounge access, a reduced markup is a reasonable tradeoff for premium benefits.
3) Cards with strong lounge access and family benefits
Kotak’s new Solitaire card (positioned as a premium product) includes unlimited lounge access and features like 1:1 Air India air miles conversion. It’s useful if you fly India routes often. Kotak also advertises zero forex markup on Solitaire variants.
4) Balanced premium cards (easier to get than invite-only)
Axis Magnus offers strong lounge benefits and a reduced forex markup (about 2%). It hits the sweet spot for NRIs who want premium perks without invitation-only barriers.
Smart rule of thumb: if you frequently transact in USD/foreign currency while abroad, prioritise zero/low forex markup cards for foreign spends, and keep a domestic rewards card for INR spends while in India.
How NRIs use two Indian credit card strategies
Most NRIs do well with a two-card approach:
- Card A — Zero/Low-forex card (use for international hotel/airline bookings and purchases outside India). Example: RBL World Safari or Kotak Solitaire, where zero forex markup applies.
- Card B — India rewards card (use for in-India spends — shopping, fuel, dining — to collect points you can redeem for domestic travel or utilities).
Why this works: you avoid forex fees and still earn useful points you can redeem in India (or convert to airline/hotel partners when favourable).
Common mistakes NRIs make and how to avoid them
Mistake 1: Not updating KYC / address
Banks may freeze benefits or ask for documentation. Update your overseas address and KYC proactively.
Mistake 2: Paying with Dynamic Currency Conversion (DCC)
DCC (paying in your home currency at checkout) usually gives a worse rate. Choose the local currency and let your zero/low-forex card and bank conversion handle it.
Mistake 3: Missing payments because of OTP issues
Ensure your bank can send OTPs to your overseas number or set up alternate verification methods (email or app). Set autopay from NRE/NRO.
Mistake 4: Relying only on US-issued cards in India
US cards may have a 3% foreign transaction fee in India; for local payments in India, use an Indian card to avoid extra charges and earn local rewards.
Can NRIs keep Indian credit card alive while living abroad
- Link the card to an NRE or NRO account and enable autopay.
- Update your KYC: passport, overseas address proof, and Indian correspondence address (if asked).
- Make one small charge per month and clear it — keeps the card active.
- Carry a Visa/Mastercard backup if you rely on Amex (Amex acceptance can be patchier in some places).
- Review forex markup and benefits annually — banks change fees and features. (Major banks revised card rules in 2025; always check the latest T&Cs).
FAQs
Is it worth keeping an Indian credit card as an NRI?
Yes — if you manage it smartly. The advantages are clear:
- Avoid foreign-transaction fees when spending in India.
- Maintain and grow Indian credit history (helpful for future loans or returning to India).
- Earn and redeem rewards that are valuable in India (fuel, domestic flights, shopping).
The downside is avoidable: KYC and bill payment hassles are straightforward to manage with an NRE/NRO account and autopay. Choose cards with the right mix of forex fees, acceptance, and redemption partners for your travel habits.
