FBAR vs FATCA: Which NRI Accounts Must Be Reported?

If you are an NRI in the US juggling an NRE account, an EPF balance back home, and maybe a mutual fund folio your parents helped you open years ago, you have probably run into both FBAR and FATCA in the same breath. The confusing part is not the acronyms, it is figuring out which of your specific Indian accounts and assets each one actually requires.

This comparison walks through FBAR vs FATCA side by side, then maps reportability across the Indian account types NRIs actually hold, NRE and NRO accounts, PPF, EPF, NPS, mutual funds, demat holdings, and ULIPs, so you know exactly what belongs on which form.

What is FBAR?

FBAR, or the Report of Foreign Bank and Financial Accounts, is filed as FinCEN Form 114 under the Bank Secrecy Act. It is not a tax form. It goes to the Financial Crimes Enforcement Network, a bureau of the US Treasury, not the IRS. Any US person, meaning a citizen, green card holder, or tax resident, with a financial interest in or signature authority over foreign accounts worth more than $10,000 combined at any point in the year must file it by April 15, with an automatic extension to October 15. See our complete FBAR filing guide for NRIs for the full walkthrough.

What is FATCA?

FATCA, the Foreign Account Tax Compliance Act, requires the same population, any US person, including anyone who meets the substantial presence test, with specified foreign financial assets, to file Form 8938 with their tax return. Unlike FBAR, FATCA also obligates foreign banks to report American account holders to the IRS, which is why Indian banks now ask NRIs for a US tax ID at account opening. Thresholds scale with filing status and residency, from $50,000 for a single filer in the US to $600,000 for a married couple abroad. Our FATCA and CRS reporting guide covers the mechanics in full.

FBAR vs FATCA: Which Indian accounts and assets must be reported?

FBAR and FATCA ask different questions. FBAR asks whether you have a foreign financial account and how much is in it. FATCA asks whether you hold a specified foreign financial asset, a category broad enough to include some things that are not accounts at all. That difference is exactly why some Indian holdings show up on one form, both, or neither.

The table below maps the account and asset types most NRIs actually hold in India against both regimes.

The pattern worth remembering is this: if it is a financial account, real or as good as one, it almost always hits both forms once you clear the threshold. If it is an asset without an account wrapper, like directly held stock certificates or a private company stake, FBAR usually stays quiet and FATCA is the one that catches it.

Real estate and physical gold sit outside both regimes entirely, though the income or gains they produce are still taxable and reportable elsewhere on your return.

For someone like Meera, a software engineer in Austin with an NRE fixed deposit, an EPF balance from her years working in Pune, and a demat account with a handful of mutual funds, that means three separate line items across her FBAR and at least two of them repeated on Form 8938, even though every rupee of that NRE interest is exempt from Indian income tax under Section 10(4)(ii).

FBAR vs FATCA: Which one applies to you?

Most NRIs with active accounts in India end up needing both forms, not one or the other. The real question is not which form wins, it is whether your specific balances clear each threshold, since FBAR triggers at a much lower bar than FATCA.

You likely need to file FBAR if:

• Your combined balances across an NRE, NRO, or FCNR account, PPF, EPF, and other India holdings add up to more than $10,000 at any single point in the year, even for one day.
• You have signature authority over a parent's or in-laws' account in India, even if none of the money is yours.
• You hold small amounts across many accounts. FBAR looks at the aggregate, not any one account in isolation.

You likely need to file FATCA (Form 8938) if:

• You are single, live in the US, and your specified foreign financial assets exceed $50,000 at year end or $75,000 at any point during the year.
• You are married filing jointly, live in the US, and those combined assets exceed $100,000 at year end or $150,000 at any point.
• You hold Indian stocks directly, without a demat wrapper, or an interest in a private Indian company or LLP, since these show up on Form 8938 even when they skip FBAR entirely.
• Your India holdings include PPF, EPF, or NPS balances, or a ULIP policy, since both regimes typically apply once those cross the threshold.

Can you owe both?

Yes, and for most working NRIs with even modest savings in India, this is the common outcome rather than the exception. FBAR's $10,000 bar is easy to clear with just an NRE fixed deposit and an EPF balance, while FATCA's higher thresholds catch up once mutual funds, demat holdings, or a second account are added in. Filing FBAR does not exempt you from FATCA, and filing FATCA does not exempt you from FBAR. They go to different agencies, under different laws, and one omission does not cover for the other.

Conclusion

FBAR and FATCA test different things at different thresholds, and for NRIs holding NRE accounts, EPF balances, or mutual fund folios in India, clearing both bars at once is the norm, not the exception. Map every Indian account and asset against both forms each year rather than assuming last year's filing status still applies. If your holdings have grown, it is worth a second look before your next deadline.