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NRI Banking
NRO Account: Meaning, Features & Documentation
An NRO Account is an essential financial tool for Non-Resident Indians (NRIs) looking to manage their income in India. Whether you receive rent, dividends or pension, an NRO Account allows you to handle these funds securely while complying with Indian regulations.
NRO Account meaning
An NRO Account is a Savings or Current Account held in India by an NRI to manage Indian income. It is maintained in Indian Rupees (INR) and is ideal for handling funds earned within India, including rental income, dividends or pensions.
Who can apply for an NRO Account?
- Non-Resident Indians (NRIs): Indian citizens residing abroad for employment, business or other reasons.
- Persons of Indian origin (PIOs): Individuals of Indian descent with foreign nationality.
- Overseas Citizens of India (OCIs): Foreign nationals of Indian origin registered as OCIs.
Features of an NRO Account
- The NRO Account is maintained in INR, simplifying income management in India.
- It is available as NRO Savings, Fixed Deposit or Current Account based on your needs.
- It can be held jointly with another NRI or a resident Indian.
- It offers competitive interest rates on savings and Fixed Deposits.
- It allows fund transfers between NRO and NRE Accounts, with limits on outward remittance.
Documentation requirements for NRO Accounts
- Passport with visa or residence permit showing NRI status
- Proof of overseas and Indian address
- Recent passport-sized photographs
- A declaration under the FEMA confirming your NRI status
- PAN card or Form 60 (in absence of PAN card)
Permissible credits for NRO Accounts
- Income from India including rent, dividends, pension and interest on deposits.
- Funds from another NRO Account.
- Direct remittances from abroad into the NRO Account.
- Proceeds from the sale of property or other assets in India.
Permissible payments in India from the NRO Account
- Payment of utility bills, insurance premiums and EMIs
- Investment in shares, Mutual Funds and other securities using funds from your NRO Account.
- Payment of taxes, statutory dues and other charges to the government.
Repatriation for NRO Accounts
You can repatriate up to USD 1 million per financial year from your NRO Account, including current income, provided all taxes in India are paid. For amounts beyond this limit, RBI approval is required.
How to open an NRO Account
1. Select a bank that offers competitive interest rates and convenient services for NRIs.
2. Fill out the account opening form available on the bank’s website or visit a branch.
3. Submit the necessary documents, including identity proof, address proof and FEMA declaration.
4. Transfer funds into your new NRO Account through remittance or local transfer.
5. Once your account is active, you can start using it to manage your Indian earnings.
Also Read: Documents needed for NRI account opening in India
Conclusion
An NRO Account is an essential account for NRIs to manage their income in India efficiently. With easy fund management, tax compliance and repatriation options, it offers a reliable solution for handling Indian earnings.
If you're looking for a banking partner that provides comprehensive services tailored to NRIs, consider the Axis Bank NRI Priority Savings Account. This account offers all the essential benefits of an NRO Account and provides additional perks like complimentary Epicure membership, health insurance at attractive premium, complimentary Axis Bank Club Vistara Forex Card, Family Banking Program, a robust rewards program and more, making it a smart choice for managing your finances in India.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
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