NRO Accounts

1. Who can open NRO Accounts?

  • Non-Resident Indians can open the NRO accounts (SB, CA and Term deposits).

  • The accounts can be opened in single / joint names.

  • The joint account holder can be a non-resident or a resident.

  • Foreign tourists during their stay in India can also open a NRO account for a maximum period of 6 months.

2. What will be the status of accounts of an Indian resident on becoming a NRI?

Such accounts can be designated as NRO accounts.

3. What is the rate of interest applicable on these deposits?

The interest rates are as applicable as for domestic deposit accounts and are subject to change from time to time. The interest income earned on NRO accounts attracts Income Tax.

For details, click here.

4. Is interest on NRO accounts repatriable?

Interest earned on NRO accounts can be repatriated subject to payment of tax.

5. What are the permissible credits?

  • Proceeds of remittances in any permitted currency from abroad through normal banking channel.

  • Any permitted currency tendered by the account holder during his / her temporary visit to India.

  • Remittances by way of transfer from rupee accounts to Non-Resident bank accounts.

  • Legitimate local dues like rent, dividend, pension, and interest are also proceeds of assets including immovable property acquired out of rupee / foreign currency funds or by way of legacy / inheritance.

6. What are the 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 income like rent, dividend, pension, interest in India of the account holder (net of applicable taxes).

7. What are the conditions regarding repatriation of balances in NRO accounts?

  • Repatriation of current income is allowed up to US dollars 1 million per calendar year for any purpose from the balances in NRO accounts subject to payment of applicable taxes.

  • The limit of US dollars 1 million includes sale proceeds of immovable properties held by NRIs / PIOs.

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