Can OCI Cardholders Maintain an Indian Bank Account After Becoming Foreign Citizens?

I went through something similar after becoming a US citizen. In my case, the bank asked me to update my residential status and citizenship details rather than simply continuing the account as a normal resident savings account.

I was told to provide my foreign passport, OCI card and updated KYC information. The bank then changed the account to NRO.

That seems to be the important distinction: becoming a foreign citizen and holding an OCI card doesn't mean you continue to be treated as an Indian resident for banking purposes. RBI guidance specifically recognizes OCI cardholders as persons of Indian origin for certain non-resident account purposes.

My advice would be to contact your bank's NRI/forex department rather than just the regular branch. Different banks may have slightly different documentation procedures.

Also, since you mentioned rental income, ask specifically about the NRO account because that is generally used for legitimate rupee transactions in India by non-residents.

One thing that confused me initially was the difference between OCI status and Indian citizenship.

An OCI cardholder is still a foreign citizen, not an Indian citizen. For banking purposes, the bank will look at your residential status and citizenship information and apply the relevant FEMA/RBI rules.

RBI's guidance says a person resident outside India can maintain an NRO account for bona fide rupee transactions.

If you're receiving rent, pension, investment income, or other legitimate income in India, discuss the appropriate NRO arrangement with your bank.

For NRE eligibility, I would check directly with the bank because the exact account eligibility and documentation should be confirmed based on your status. Don't assume that having an OCI card automatically makes every type of NRI banking product available.

I’m in the UK and had a resident savings account before becoming a British citizen. When I updated my status, the bank asked me to convert it to an NRO account.

The main issue wasn't the OCI card itself. It was my change in residential/citizenship status and the fact that I was now living outside India.

RBI's current FAQ says NRO accounts can be opened by a person resident outside India for bona fide rupee transactions. It also specifically includes OCI cardholders within the PIO category for the relevant non-resident account framework.

I also had some rental income in India, so keeping an NRO account made sense for me.

I wouldn't continue operating the old resident savings account without checking with the bank. Ask them to confirm how your account should be redesignated under FEMA rules.