While non-resident Indians reside, study, or work abroad, they may still have income sources in India. These may include rental income from a property they own in India, dividends from Mutual Funds, interest income from Fixed Deposits in India, and more. Hence, they need a Bank Account to deposit all their income that originates in India conveniently. This is when a Non-Resident Ordinary or NRO Account can be valuable.
What is an NRO Account?
It is an NRI Bank Account that allows you to deposit, access, and manage the earnings that arise in India. This account also allows you to deposit your foreign currency earnings in it. The bank automatically converts it into Indian Rupees and maintains the account in the same currency.
Features of an NRO Account
The important highlights of this NRI Account include the following:
- You can open an NRO Account online from anywhere and manage it remotely.
- The funds NRIs deposit in this account can earn interest at a competitive NRO interest rate determined by your bank.
- NRIs can transfer up to USD 1 million from this account each year.
- The interest you earn on the sum deposited in an NRO Account is taxable in India.
- You can open this account jointly with a resident Indian on a former or survivor mode of operation. You can also open an NRO Account jointly with another NRI.
- While you can deposit foreign currencies into this account, you can only withdraw funds from this account in INR.
Eligibility requirements
The following people are eligible to open an NRO Account online:
- NRIs
- Indian citizens living outside India on business, employment, or student visas
- Persons of Indian Origin
- Overseas Citizens of India
- Spouses of Indian citizens or PIOs
- Individuals posted in the UN
- Indians deputed abroad by the Indian Government or public sector undertakings
- People who have had an Indian passport at anytime
- A person whose parent or grandparent was an Indian citizen by the Constitution of India or under the Indian Citizenship Act of 1955
- Indian nationals employed in the merchant navy
- Individuals who work on oil rigs
- Individuals employed with airlines overseas
How to open it?
Opening NRI Account is extremely easy today, and you can conveniently do it online from the comfort of your home. However, if you are unsure about the steps, fill out a simple form online, and wait for a relationship manager to reach out.
How to fund this account?
You can fund an NRO Account in the following ways:
- Remit money from overseas to the account
- Transfer money from another NRO Account
- Deposit your income originating from India
- Deposit proceeds from the sale of a property or investment
- Borrow money from a resident Indian
