NRO Deposits
- Types: Recurring/Fixed Deposits/Family Welfare Deposits/Cumulative
- Funds from overseas or India
- Interest earned on NRO accounts is subject to tax deduction.
- Tax discounts on NRO deposits, as applicable under Double Taxation Avoidance Agreement (DTAA)
- Remittance up to USD one million, per financial year (April to March), by NRI, subject to payment of tax, as applicable. Transfer to NRE account of NRI within the overall ceiling of USD one million per financial year (April-March), subject to payment of tax, as applicable.
- Remittance outside India of current income like rent, dividend, pension, interest etc. in India of the account holder
- Joint account -Permitted with NRIs/Residents. A Resident close relative can also join under ‘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.
- Loans can be availed against security of term deposits.
- NRO Family Welfare Deposits: This is a reinvestment deposit scheme meant for NRIs. Deposits are accepted for a minimum period of six months and for a maximum period of 10 years.
- NRO Cumulative Deposit Accounts: This is a recurring deposit scheme meant for NRIs that enables the depositor to build up a sizeable corpus in a regular/ systematic manner. These accounts can be opened for a minimum period of six months and in multiples of three months for up to 10 years.
- Interest rate and period of NRO term deposits as applicable for domestic term deposits
- Interest earned on deposit is credited after TDS and surcharge, if any, as applicable from time to time.
- Effective from 01.01.2007, where term deposits (opened on or after 01.01.2007) are closed prematurely, the rate of interest payable shall be the one as applicable for the period for which the deposit actually remained with the bank, ruling on the date of the deposit, less 1% penalty.
