NRO or Non-Resident Ordinary Accounts are for Indians who reside outside India for employment, business or any other purpose. These accounts are opened in Indian banks with funds that are sent from abroad. As the Foreign Exchange Management Act (FEMA) you cannot have a savings account in India if you are an NRI. However, if you live and work abroad, an NRO account can help you track and transfer money to your home account. To open an NRO account you have to show evidence in terms of visa permitting residence in a different country.
Features of NRO bank account
• An NRO bank account allows you to have a savings account, recurring account, current account as well as fixed deposit.
• An NRO account accepts deposits of money earned in India.
• The deposits in the account can be made using foreign currencies, traveller’s cheques, cheques in any currency as well as from any legitimate form of income in India.
• You can transfer the funds from a different Non-Resident Indian account or Foreign Currency Non-Repatriable account.
• If you are depositing foreign currencies, they will be deposited into your account as Indian currency at the existing exchange rate.
• 30% Income Tax is deducted at source on the interest earned in NRO account.
• You can easily invest in mutual funds and other investments through the NRO account.
• A minimum amount must be maintained in the account for it to remain active.
Benefits of NRO account
• You can retain your income and assets in India with an NRO bank account.
• Your dependents in the home country can access your funds in the NRO account.
• You can send money to India or withdraw money at any time.
• Transfer of money to the NRO account is free.
• NRO accounts have higher rates of interest.
• Every account holder gets a free chequebook and an ATM card. An additional ATM card is issued for use by a relative or friend in the home country.
• A local representative can manage the account. However, they must have a letter allowing them to do so.
• Free e-mail statements are issued.
• There is no restriction or upper limit on the withdrawals as long as you maintain the minimum balance in your account.
NRIs can only deposit their earnings in India in an NRO account. It is illegal to deposit such money into any other account. If you have a source of income in India, despite being settled abroad, an NRO account helps you to manage and organise your finances in India better and in a more efficient manner.
Features of NRO bank account
• An NRO bank account allows you to have a savings account, recurring account, current account as well as fixed deposit.
• An NRO account accepts deposits of money earned in India.
• The deposits in the account can be made using foreign currencies, traveller’s cheques, cheques in any currency as well as from any legitimate form of income in India.
• You can transfer the funds from a different Non-Resident Indian account or Foreign Currency Non-Repatriable account.
• If you are depositing foreign currencies, they will be deposited into your account as Indian currency at the existing exchange rate.
• 30% Income Tax is deducted at source on the interest earned in NRO account.
• You can easily invest in mutual funds and other investments through the NRO account.
• A minimum amount must be maintained in the account for it to remain active.
Benefits of NRO account
• You can retain your income and assets in India with an NRO bank account.
• Your dependents in the home country can access your funds in the NRO account.
• You can send money to India or withdraw money at any time.
• Transfer of money to the NRO account is free.
• NRO accounts have higher rates of interest.
• Every account holder gets a free chequebook and an ATM card. An additional ATM card is issued for use by a relative or friend in the home country.
• A local representative can manage the account. However, they must have a letter allowing them to do so.
• Free e-mail statements are issued.
• There is no restriction or upper limit on the withdrawals as long as you maintain the minimum balance in your account.
NRIs can only deposit their earnings in India in an NRO account. It is illegal to deposit such money into any other account. If you have a source of income in India, despite being settled abroad, an NRO account helps you to manage and organise your finances in India better and in a more efficient manner.
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