NRO (Non Resident Ordinary) Accounts

Non Resident Ordinary (NRO) Accounts are opened for Non Resident Indians. A Non Resident Indian (NRI) is an Indian citizen or foreign national of Indian origin resident outside India for purposes of employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period. A person of Indian origin (PIO) is a citizen of any country other than Pakistan, Bangladesh or Sri Lanka, who

  • At any time held an Indian Passport,
  • He or any of his parents or grand parents was a citizen of India,
  • Is a spouse of an Indian Citizen or a person referred to above.

When an Indian national or a person of Indian origin residing in India leaves India for taking up employment, business or vocation or for any other purpose, indicating his intention to stay outside India permanently or for an indefinite period, he becomes a person resident outside India. His bank accounts in India are designated as Non-resident Ordinary (NRO) Accounts. NRO accounts can also be opened with funds remitted from abroad.

Salient features of NRO Accounts

FeatureDescription
EligibilityPersons of Indian nationality or origin residing abroad. Accounts can be opened in single name or in joint names with another non resident or resident Indian.

Resident Indians by inward remittances from abroad.

RequirementsIn case of NRIs, duly filled in Account Opening form with
  • Copy of the Passport
  • Visa/residence permit
  • Two copies of recent photographs
  • Initial money remittance
In case of resident Indians, as stated under Savings Bank Accounts
Types of Account
  • Savings Bank Account
  • Current Account
  • Recurring Deposit Accounts
  • Term / Fixed Deposit Accounts
Currency of accountIndian Rupees
Exchange RiskThe exchange risk is born by the depositor.
Credits in accountCredits in the accounts can be made by:
  • Depositing Foreign Currency Notes/Traveler Cheques
  • Depositing cheques/instruments drawn in foreign currency
  • Inward remittance in foreign currency or Indian Rupees from abroad
  • Transfer from another NRE or FCNR account
  • Depositors' legitimate income in India.

If credits are received in a foreign currency, the amount is converted into Indian Rupees at prevailing exchange rates.

Payments/Transfers from accountAmounts can be withdrawn from accounts for making local payments in Indian Rupees.

Balances can be repatriated for any bonafide purpose upto a maximum of US dollar one million per calendar year subject to payment of taxes.

Account OperationBy account holder(s)
Interest RateInterest rates vary from bank to bank.
Nomination facilityAvailable
TransferabilityAllowed from one branch of the issuing bank to another.
Premature EncashmentPremature payments attract some interest penalty.
Interest Taxability Income Tax at a flat rate of 30% is deducted at source on interest earned irrespective of the amount of interest.
Auto RenewalThe facility of auto renewal of deposits is available from banks.
Other features
  • Income in India can be credited to NRO accounts.
  • Rupee loans can be taken in India against the security of the deposit.
  • Investment in shares/securities/ immovable properties on non repatriation basis can be made with general or specific permission from the RBI.

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