Money in India locks together in a clear order: a PAN (your tax ID) unlocks a bank account, which unlocks UPI, the way India pays for everything.
Apply for your PAN before anything else, almost everything (your salary, your bank account, big payments) needs it, and you can even apply before you arrive.
Indian rupee notes are capped at ₹25,000 per person in or out.
Money in India locks together in a clear order: a PAN (your tax ID) unlocks a bank account, which unlocks UPI, the way India pays for everything. Get them in that order and the rest follows. This guide walks each one step by step, with what it costs and where to apply, plus the rent-tax rule newcomers always miss. Your IKAN consultant files the PAN and accompanies you to the bank.
~₹107
PAN card to an Indian address
~₹72
Digital-only e-PAN
7-10 days
Bank account opened
2%
Rent TDS, if over ₹50k/mo
Do this first
Apply for your PAN before anything else, almost everything (your salary, your bank account, big payments) needs it, and you can even apply before you arrive. Foreign-passport/OCI holders use Form 95 (which replaced Form 49AA on 1 April 2026). Your IKAN consultant can file it with you.Form 95
01
Step 1 · Your tax ID
Get your PAN
A PAN is a 10-character ID from the Income Tax Department, needed for salary, banking, taxes and most large transactions.
1
Apply onlineOn Protean (NSDL) or UTIITSL, select Form 95 (foreign nationals); upload your passport, photo and proof of address (apostilled overseas address, or an Indian one).
2
Pay the fee~₹107 for delivery to an Indian address, ~₹1,017 for overseas dispatch (a digital-only e-PAN is ~₹72).
3
Receive your e-PANBy email, usually within a few working days; the physical card follows by post, later for an overseas address. Keep it safe, it's sensitive ID.
02
Step 2 · Where your salary lands
Open your bank account
Resident savings, not NRO. On a long-term employment visa you're treated as a resident for banking, open an ordinary resident savings account (usually the salary account your employer sets up), not an NRO/NRE account. Opening the wrong type causes headaches later.
1
Gather your documentsPassport (original + copy), employment visa, FRRO/Residential Permit, PAN (or Form 60 meanwhile), Indian + overseas address proof, employer letter and photos.
2
Open the accountYour employer often arranges a salary account with their partner bank, the fastest route. Your consultant accompanies you and runs through KYC with the staff.
3
Activate & collectAllow about a week (sometimes up to two for foreign nationals); collect your debit card, cheque book and net-banking login.
International banks in India, HSBC, Standard Chartered, DBS, Deutsche, Citi, can be convenient if you bank with them at home. SBI is the largest public-sector option.
03
Step 3 · How India pays
Set up UPI
UPI is how India pays, instantly, by phone, scanning a QR or sending to a number.
1
Link bank + SIMOnce you have an Indian account and SIM, add them in Google Pay, PhonePe or Paytm, ready in minutes.
2
Set your UPI PINUsing your debit-card details; this PIN authorises every payment.
3
Bridge the gap meanwhileNot set up yet? Use a UPI One World prepaid wallet (at major airports), KYC with passport + visa, load rupees by card, pay on your existing number until your account is live.
04
Step 4 · The rule newcomers miss
Paying rent & the TDS rule
Rent over ₹50,000/month? Indian law makes you, the tenant, deduct 2% TDS (section 393(1) of the Income-tax Act, 2025, the old 194-IB), pay it via Form 141 online (the old 26QC) within 30 days of the month you deduct in, and give your landlord a Form 132 certificate (the old 16C). It's deducted once a year (or when you move out), not monthly, and at 20% if the landlord won't share a PAN. An NRI landlord triggers a heavier monthly rule. Your consultant and a tax advisor set this up so it's handled correctly. (More in the Renting Your Home guide.)
Always sign a registered lease and keep rent receipts, useful for your taxes, HR and FRRO. TDS rates and thresholds can change; confirm the current figure when you set up your tenancy.
05
The fine details
Good to know
Know your transfers
UPI for small/instant; IMPS/NEFT/RTGS for larger bank-to-bank. RTGS suits big sums like a deposit.
Guard your OTPs & PAN
No genuine bank asks for your OTP, PIN or full card on a call. Treat your PAN as sensitive ID.
Moving money in & out
Salary lands locally; wire (SWIFT) or Wise to top up from home, a forex card for week one, and your bank repatriates on exit.
Tax residency matters
182+ days usually makes you a tax resident, a cross-border advisor is worth it in year one.
Bringing cash in? Know the customs limit. You may bring foreign currency in without an upper limit, but you must declare it to Customs on a Currency Declaration Form if your foreign-currency cash exceeds US$5,000, or cash plus travellers’ cheques exceed US$10,000. Indian rupee notes are capped at ₹25,000 per person in or out. A visitor from abroad may bring in up to that amount too (citizens of Pakistan and Bangladesh excepted), so carry mostly foreign currency (declaring it above the US$5,000 notes / US$10,000 total thresholds) and exchange it once you’re in India. Not declaring risks confiscation and a penalty of up to three times the amount, so declare if in any doubt.cash exceeds US$5,000cash plus travellers’ cheques exceed US$10,000₹25,000
Aadhaar is optional for you. Foreign nationals can open a bank account, get a SIM and a PAN on passport-based KYC, you don't need an Aadhaar. If you stay past 182 days you may enrol (Form 7/8 at an Aadhaar Seva Kendra) for the convenience of Aadhaar e-KYC; for a foreign national it stays valid only as long as your visa / FRRO permit.
Where expertise meets empathy, supporting your move to India, every step of the way. Reflects 2026 banking, PAN and tax practice; rules and rates change, your consultant or a tax advisor will confirm the current specifics for your situation.