NRO Account (Non-Resident Ordinary Rupee account ) -NRIs in India

How to open  NRO Account in India by NRI

NRO accounts / accounts can be opened as a savings, recurring ,current, or fixed deposit accounts. RBI decides the rate of interest for these accounts and issues guidelines times to time for opening and  operating these NRO account.

Can a Joint  NRO Account with Residents/Non-residents  be opened .

Yes, Joint  NRO accounts are permitted with resident and non-residents.

Eligibility to open nro account

1. Any Indian person  residing outside the India is eligible open a NRO account with an  authorised bank for dealings  in Indian Rupees.
2. Joint accounts are allowed with any resident or non resident Indians.

What type of transactions are allowed in NRO account

Transfer of Assets -

Any Nor resident Indian NRIs and PIO may transfer  upto USD One million in a r calendar year, from  balances held in the NRO account in india  which could be acquired from the sale of assets purchasedd in India out of rupee or foreign currency funds or by way of inheritance from any resident Indian, but  provided:

1. (a) Assets acquired in India  from  of rupee/foreign currency funds

(i) Other financial assets: There is no lock-in period for remittance of sale proceeds of other financial assets.

(ii) Immovable property:  any NRIs  may tranfer  amount of sale proceeds of immovable property bought by them when they were resident  in india or out of Rupee funds as NRI .

(b) Assets gained or acquired by inheritance: Any amount from Sale proceeds of assets acquired through inheritance can be transferred.

Remittance of assets out of NRO account by a person resident outside India other than NRI/PIO
A foreign  person  who is not a citizen of  Bhutan, Bangladesh, Pakistanor  Nepal  and who has retired as an employee in India,  and has old inherited property  from a resident Indian, or she is a widow residing outside India and has inherited property of her deceased husband who was a resident Indian can remit upto USD one million one calendar year.

What are the Debits allowed in this account -

• Any payments made for any  expenses and investments made in India
• Any Payment made outside the India of current income like dividend,rent,  interest, pension etc. in India of the nro account holder.
• Up to USD One million repartitions , in a  calendar year, for all  good purposes with the approval of the authorised bank or dealer.

What are the amount can be Credited in this account -

• Fund transfer  from outside India through normal banking transfer received in  foreign currency.
• Convertible foreign currency can be deposited into the   nro account during the nri’s visit to India. any foreign currency more than  USD 5000/- or its equivalent in the form of cash has to be supported by a Currency Declaration Form. Rupee funds must be supported by an Encashment Certificate, if they are funds brought from outside India.
• Any Current income earned in India, like as dividend,rent, pension or interest. Any proceeds from sale of assets or immovable property purchased  out of rupee or foreign currency funds.

Non resident Indians can get very good interest rates in NRO account term deposits  NRO accounts are easy to operate.