Non-Resident Ordinary Accounts (NRO Accounts)

• An account maintained in INR where you can park and invest your legitimate earnings in India
• Interest earnings are subject to deduction of income tax at source
• Tax discounts on NRO deposits, as applicable under Double Taxation Avoidance Agreement (DTAA)
• Types:Current/Savings
• Credit to this A/C can be in the form of  Inward remittances from outside India, legitimate dues in India and transfers from other NRO accounts.Rupee gift/ loan made by a resident to a NRI/ PIO relative within the limits prescribed under the Liberalized Remittance Scheme may be credited to the latter’s NRO account.
• Permissible debits are local payments, transfers to other NRO accounts or remittance of current income abroad. Apart from these, balances in the NRO account cannot be repatriated abroad except by NRIs and PIOs up to USD 1 million per financial year(April to March), subject to payment of tax, as applicable. Also funds can be transferred to NRE account within this USD 1 Million facility per financial year subject to payment of tax, as applicable.
• Account can be opened either individually or jointly in the names of two or more NRIs/ PIOs. Also account can be opened jointly with close relative residents on ‘former or survivor’ basis where the NRI/PIO is the former holder and the Resident holder can operate the account only on death of the primary NR/PIO holder. However, the resident relative can operate the account as a Letter of authority/Power of Attorney holder during the life time of the NRI account holder.
• Nomination can be in favour of a Non-Resident/ Resident.