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    Summary of NRO Account

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    KIRAN REDDY
    An NRO account is a bank account opened in India by a non-resident Indian (NRI) or person of Indian origin (PIO) to deposit income earned in India. Funds in an NRO account can be used for local payments, transfers to other NRO accounts, and remittance of current income abroad. NRIs and PIOs can also repatriate up to $1 million from the NRO account subject to certain conditions. An NRO account is opened in Indian rupees and allows fixed deposits, interest rates set by the RBI, and joint holding with residents or other NRIs/PIOs.

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    Summary of NRO Account

    Uploaded by

    KIRAN REDDY
    16 views2 pages
    An NRO account is a bank account opened in India by a non-resident Indian (NRI) or person of Indian origin (PIO) to deposit income earned in India. Funds in an NRO account can be used for local payments, transfers to other NRO accounts, and remittance of current income abroad. NRIs and PIOs can also repatriate up to $1 million from the NRO account subject to certain conditions. An NRO account is opened in Indian rupees and allows fixed deposits, interest rates set by the RBI, and joint holding with residents or other NRIs/PIOs.

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    Summary of NRO account

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    An NRO account is a bank account opened in India by a non-resident Indian (NRI) or person of Indian origin (PIO) to deposit income earned in India. Funds in an NRO account can be used for local payments, transfers to other NRO accounts, and remittance of current income abroad. NRIs and PIOs can also repatriate up to $1 million from the NRO account subject to certain conditions. An NRO account is opened in Indian rupees and allows fixed deposits, interest rates set by the RBI, and joint holding with residents or other NRIs/PIOs.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views2 pages

    Summary of NRO Account

    Uploaded by

    KIRAN REDDY
    An NRO account is a bank account opened in India by a non-resident Indian (NRI) or person of Indian origin (PIO) to deposit income earned in India. Funds in an NRO account can be used for local payments, transfers to other NRO accounts, and remittance of current income abroad. NRIs and PIOs can also repatriate up to $1 million from the NRO account subject to certain conditions. An NRO account is opened in Indian rupees and allows fixed deposits, interest rates set by the RBI, and joint holding with residents or other NRIs/PIOs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    What is an NRO Account:

     An NRO account is a bank account opened in India in the name of an NRI/PIO,


    to park his income earned in India.

     Savings, Current, Recurring, Fixed Deposit.

    Who can open NRO Account:


    Any person resident outside India for putting through bonafide transactions in
    rupees.

    Permissible Credits:

     Inward remittances from outside India.

     Legitimate dues in India.

     Transfers from other NRO accounts.

     Rupee gift/ loan made by a resident to a NRI/ PIO relative within the limits
    prescribed under the Liberalised Remittance Scheme may be credited to the
    latter’s NRO account.

    Permissible Debits:

     Local payments.

     Transfers to other NRO accounts.

     Remittance of current income abroad.

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    Apart from these, balances in the NRO account cannot be repatriated abroad
    except by NRIs and PIOs up to USD 1 million, subject to conditions specified in
    Foreign Exchange Management (Remittance of Assets) Regulations, 2016.

    Funds can be transferred to NRE account within this USD 1 Million facility.

    Features of NRO Account:

     Account is opened in INR.

     Period of Fixed Deposit is same as applicable to resident accounts.

     Rate of Interest is as per the directions of RBI.

     NRIs/ PIOs can hold jointly with a residents or with two or more NRIs/PIOs.

     Operations in the account in terms of Power of Attorney is restricted to


    withdrawals for permissible local payments in rupees, remittance of current
    income to the account holder outside India or remittance to the account
    holder himself through normal banking channels. While making remittances,
    the conditions of repatriability will apply.

     NRO accounts may be designated as resident accounts on the return of the


    account holder to India for any purpose indicating his intention to stay in
    India for an uncertain period.

    Likewise, when a resident Indian becomes a person resident outside India,


    his existing resident account should be designated as NRO account.

    2|Page

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