Different ways to fund NRO Accounts

Everyone is different, and so are their banking and financial requirements. As a non-resident Indian, you may have different and more specific banking and financial requirements than a resident Indian. Firstly, as per the Foreign Exchange Management Act, NRIs cannot operate through a Resident Bank Account. Furthermore, such accounts may not meet your specific requirements.

Opening NRI Account online can be beneficial. It possesses several features and benefits that help meet your specific financial needs. NRI Accounts are of three types: Non-Resident Ordinary, Non-Resident External, and Foreign Currency Non-Resident. These accounts vary concerning the deposits allowed, taxation, repatriation, and other features. Consider your banking requirements to open a suitable account.

Opening an NRO Account is viable to secure your Indian Rupee income. The account is maintained in INR and offers a competitive interest rate. The interest income is taxable. You can repatriate up to USD 1 million from your account in a financial year.

How to open an NRO Account?

Before understanding the NRO Account opening procedure, learn who is eligible to open the account. An NRI, Person of Indian Origin, and Overseas Citizen of India can open an NRO Account. International students and tourists in India can also open an NRO Account. Here are steps to do so:

• Visit your bank or go online to open an NRO Account.
• Fill out the account opening form. It typically needs you to mention your personal and financial details.
• Check the bank’s website to know the document requirements. Gather all documents, scan them, and upload them.
• The bank takes reasonable time to verify your details and documents. They may contact you in case of doubts, queries, or additional document requirements.
• The bank opens NRO online upon successful verification. You can use the account to carry out various banking activities.

How to fund an NRO Account?

You need to have funds in your account to carry out any banking activity. Here are various ways in which you can fund your NRO Account:

• Channel INR income

As mentioned, opening an NRO Account helps you secure and grow your INR income. Link your investments to your NRO Account. This way, every time your investment generates returns, it will automatically be directed to your NRO Account. If you own rental properties in India, you can provide your NRO Account details to your rentees to conveniently deposit the monthly rent. You can also channel investment and asset sale proceeds to the NRO Account.

• Remittances

Remittance is another great way to fund your NRO Account. You would want to make a money transfer to India to help your parents manage their daily expenses or to celebrate a special occasion. Consider opening a Joint NRO Account so that your parents can access the remitted amount easily.