If you are an Indian citizen living abroad on a permanent or long-term basis, you can still use banking facilities in this country. However, you will not be able to use the regular facilities available to resident Indians. There are special accounts that suit residents of India who live abroad better. An NRO account or Non-Resident Ordinary Rupee Account allows you to save your earnings or savings in India, in Indian currency. They are especially suitable form NRIs who have investments in stocks in India or another form of income where they earn Indian currency.
NRO Account Features
The key features of an NRO account are as follows-
• Deposits in denominations of Indian Rupee are allowed in this type of account
• You can open such an account jointly with a resident of India
• You can hold your NRO account in the form of savings account, current account, recurring deposits, and fixed deposits
• This account pays an attractive interest. The interest is not free from taxes, including all surcharge and educational cess
• You can convert your existing account in a bank to an NRO when you settle abroad. On returning to India, you can transfer the account back to a regular banking account
• The account allows nomination facility
• It is a non-repatriate account. Therefore, you cannot transfer money to or from this account to your NRE account. Neither can you transfer money to any account you hold abroad. However, you can transfer money to a different NRO account or a resident’s account.
Benefits of an NRO Bank Account
The benefits of an NRO bank account include the following-
• You are eligible for free chequebook and ATM card on opening the account
• Interest rates in an NRO account are higher than regular resident accounts
• Your existing investments in India can continue to reap returns as usual
• If you have a source of income in India, it can only be stored in an NRO account and not in any other type of NRI account
• You can keep your income in India and that abroad completely separate through an NRO account
Since it is illegal to hold a resident account if you are an NRI, an NRO bank account is compulsory to hold your income in Indian Rupees. With the advantages of jointly holding the account with a resident, you can ensure your loved ones in India have regular access to cash even when you are not in the country.
Most NRO accounts offer complimentary facilities and added benefits that you can enjoy all over the globe. It certainly makes banking simpler and convenient for Indians residing abroad.
NRO Account Features
The key features of an NRO account are as follows-
• Deposits in denominations of Indian Rupee are allowed in this type of account
• You can open such an account jointly with a resident of India
• You can hold your NRO account in the form of savings account, current account, recurring deposits, and fixed deposits
• This account pays an attractive interest. The interest is not free from taxes, including all surcharge and educational cess
• You can convert your existing account in a bank to an NRO when you settle abroad. On returning to India, you can transfer the account back to a regular banking account
• The account allows nomination facility
• It is a non-repatriate account. Therefore, you cannot transfer money to or from this account to your NRE account. Neither can you transfer money to any account you hold abroad. However, you can transfer money to a different NRO account or a resident’s account.
Benefits of an NRO Bank Account
The benefits of an NRO bank account include the following-
• You are eligible for free chequebook and ATM card on opening the account
• Interest rates in an NRO account are higher than regular resident accounts
• Your existing investments in India can continue to reap returns as usual
• If you have a source of income in India, it can only be stored in an NRO account and not in any other type of NRI account
• You can keep your income in India and that abroad completely separate through an NRO account
Since it is illegal to hold a resident account if you are an NRI, an NRO bank account is compulsory to hold your income in Indian Rupees. With the advantages of jointly holding the account with a resident, you can ensure your loved ones in India have regular access to cash even when you are not in the country.
Most NRO accounts offer complimentary facilities and added benefits that you can enjoy all over the globe. It certainly makes banking simpler and convenient for Indians residing abroad.
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