The NRE or NRO account is a bank account that is held by an individual that lives outside of India, but is still an Indian citizen. There are numerous banks that have these accounts and there are even some that have branches that are dedicated to these customers. They have a wide variety of benefits that can be enjoyed both inside and outside of India.
Here are just some of the most frequently asked questions (FAQs) regarding the NRE or NRO accounts.
Who is considered an NRI?
An individual is considered to be an NRI or non-resident Indian when they retain their Indian citizenship, but are residing outside of the country.
Who can open an NRO account?
There are many people who can open an NRO account, including anyone who is an NRI or PIO, which is a person of Indian origin.
What is a PIO?
Another type of individual who can hold an NRO/NRE account is a PIO or person of Indian origin. This includes anyone who was previously a citizen of the country or who is a great-grandchild, grandchild or child of anyone who was an Indian citizen. This also includes the foreign spouses of an individual of Indian origin.
What types of NRO accounts are there?
There are a wide variety of types of NRO accounts that can be opened, including those for a single individual or even those that are for joint account holders. Also, they can be a fixed or recurring deposit, savings and even a current account.
Can anyone of non-Indian origin open an account?
A savings or current account can be opened by anyone who is not of Indian origin using the money that is brought from outside and deposited into the account. The remaining balance can be given back if the account is not older than 6 months and if no local funds have been deposited into the account.
What documents are required for opening an NRO/NRE account?
There are plenty of documents that you would need to submit to the bank in order to open one of these accounts, including:
- Valid employment or work permit
- Valid residence permit or residence visa or PIO/OCI card
- Form 60 or PAN card
- CRS / FATCA declaration
What are the benefits of having an NRO account?
There are plenty of benefits that you would be able to enjoy when you open an NRO/NRE account, such as:
- Higher yield after taxes
- Money transfers free of hassles and lower cost
- Low minimum balance requirement
- Account access at any time
- Joint holding available
- Internet banking
- Debit/credit card
What are the types of credits that are allowed for deposit in the NRO/NRE account?
There are plenty of types of credits that are legally allowed to be deposited into this account. Some of them include:
- Current income such as interest, pension or rent
- Legitimate dues for India
- Money transfer from another NRO
- Loans or gifts in Indian rupee to the PIO or NRI from a local resident
- Interest that is accrued on the balance of the account
- Inward deposits from countries outside of India