Getting a job and settling in abroad is all fine, but how are you managing your funds or shares/securities back home? Are there enough funds to support your family financially? If you send them money, how can they deposit it? Where can they get them done?
These are some fundamental questions that arise the moment you work overseas. Now, the pressure is eased off thanks to banks offering different bank accounts for the non-resident Indians (NRIs). They have three options to choose from: NRE account, NRO account and FCNR account. While NRE and NRO accounts are rupee dominated, FCNR accounts allow only foreign currencies. Each of these accounts varies in parts. Let us learn in detail about NRO accounts.
What is an NRO account?
This kind of account can be opened either by non-resident Indians (NRIs) or Person of Indian Origin (POI), except for people staying in countries like Nepal and Bhutan. You can open an NRO savings account or NRO current account or NRO recurring deposits or NRO term deposits. It is best suited for those NRIs who have existing income in India such as rent, dividends, pension, etc.
Many banks also offer debit and ATM cards for NRO accounts so that it is easier for the family members to withdraw cash from selected merchants across India.
What are the document requirements to apply for an NRO account?
1) Passport copy
2) Employment visa copy
3) Address proof
4) Age proof
5) Income proof
More information on NRO savings account:
1) If the foreign money received is convertible to Indian currency through regular banks
2) You can also open the account if you have legitimate local dues such as dividends, rent, etc.
3) The interest on NRO accounts varies across banks. The investor should thoroughly check the rates before approaching the banks
4) Unlike the FCNR and NRE accounts, the interest on NRO accounts are taxable
5) Two NRIs can open an NRO joint account unlike an NRE account
6) An NRO account is safe from exchange rate fluctuations such as daily variations in the value of rupee as well as conversion loss
7) You can only transfer money from an NRO account to another NRO account
8) Funds originating from abroad can be deposited on the NRO and NRE accounts. However, funds available in India can be stored only in the NRO savings account
Managing your income is the most crucial matter as it needs to be dealt with utmost care. NRIs have surely several options, but NRO accounts offer them benefits in terms of
These are some fundamental questions that arise the moment you work overseas. Now, the pressure is eased off thanks to banks offering different bank accounts for the non-resident Indians (NRIs). They have three options to choose from: NRE account, NRO account and FCNR account. While NRE and NRO accounts are rupee dominated, FCNR accounts allow only foreign currencies. Each of these accounts varies in parts. Let us learn in detail about NRO accounts.
What is an NRO account?
This kind of account can be opened either by non-resident Indians (NRIs) or Person of Indian Origin (POI), except for people staying in countries like Nepal and Bhutan. You can open an NRO savings account or NRO current account or NRO recurring deposits or NRO term deposits. It is best suited for those NRIs who have existing income in India such as rent, dividends, pension, etc.
Many banks also offer debit and ATM cards for NRO accounts so that it is easier for the family members to withdraw cash from selected merchants across India.
What are the document requirements to apply for an NRO account?
1) Passport copy
2) Employment visa copy
3) Address proof
4) Age proof
5) Income proof
More information on NRO savings account:
1) If the foreign money received is convertible to Indian currency through regular banks
2) You can also open the account if you have legitimate local dues such as dividends, rent, etc.
3) The interest on NRO accounts varies across banks. The investor should thoroughly check the rates before approaching the banks
4) Unlike the FCNR and NRE accounts, the interest on NRO accounts are taxable
5) Two NRIs can open an NRO joint account unlike an NRE account
6) An NRO account is safe from exchange rate fluctuations such as daily variations in the value of rupee as well as conversion loss
7) You can only transfer money from an NRO account to another NRO account
8) Funds originating from abroad can be deposited on the NRO and NRE accounts. However, funds available in India can be stored only in the NRO savings account
Managing your income is the most crucial matter as it needs to be dealt with utmost care. NRIs have surely several options, but NRO accounts offer them benefits in terms of
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