Non-Resident Ordinary Account (Savings Bank & Current Accounts)

Non-Resident Ordinary Account (Savings Bank & Current Accounts)

As a non-resident Indian you can also open a Non-Resident Ordinary account. Your NRO account can be a single account or a joint account. To open a joint account your joint holder can either be a resident Indian or a non-resident Indian, a handy service so you can have a joint account with your close relatives in India. The account can be a savings bank account, a current account or a term deposit.

Features and Benefits
  • An Indian resident, on becoming an NRI, can change his existing account to an NRO account.
  • The interest rates are the same as those for domestic deposit accounts and are subject to change from time to time.
  • The interest income earned on NRO accounts is subject to income tax.
  • The interest earned on NRO accounts can be repatriated after payment of tax.
  • Foreign tourists can open an NRO account for a maximum period of 6 months, during their stay in India.

Permissible Credits:

  • Proceeds of remittances in any permitted currency from abroad through normal banking channels.
  • Any permitted currency tendered by the account holder during his/her temporary visit to India.
  • Remittances by way of transfer from rupee accounts of Non-Resident bank accounts.
  • Legitimate local dues including rent, dividend, pension and interest.
  • Proceeds of assets including immovable property acquired out of rupee/foreign currency funds or by way of legacy or inheritance.

Permissible Debits:

  • All local payments in rupees, including payments for investments, subject to the compliance with the relevant regulations made by the Reserve Bank.
  • Remittance outside India of current incomes including rent, dividend, pension, interest in India of the account holder net of applicable taxes.
Interest on Overdue Deposits
  • When the branch receives renewal instructions where the deposit account is maintained, within 14 days of the due date, renewal with retrospective effect (i.e. from the due date) is permitted.

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Condition for Repatriation of NRO Account Balances
  • Repatriation of current income is allowed up to 1 million US dollars per calendar year for any purpose from the balances in NRO accounts subject to payment of applicable taxes.
  • All local payments in rupees, including payments for investments are subject to the compliance with the relevant regulations made by the Reserve Bank.
  • The limit of US dollars 1 million includes sale proceeds of immovable properties held by NRIs/ PIOs.
Documents Required
  • Copies of Passport/ Visa / Green Card
  • Photographs of the each of the account holder (one each to be affixed in account opening form)
  • Overseas and local addresses with contact Phone/Fax numbers, e-mail address etc.
  • Specimen signature of the applicants to be verified by the Indian Embassy/Consulate/ overseas Bank or Notary Public on the application form or on a separate paper and such documents should be sent along with account opening form.
  • Initial remittance

Detailed instructions are available in the application itself. NRIs are requested to go through the same and furnish all relevant details without any omission and forward the application, with the required documents, to the concerned branch of KVB to enable the account to be opened.

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