Banks in India provide various facilities for NRIs to manage their income, investment and transactions in India and the convenience of opening a bank account easily.

Among various accounts, the NRO account or Non-Resident Ordinary Account is one such account which helps NRIs to manage their earnings in India. Earnings can be in the form of:

  • Rent
  • Interest
  • Dividend 
  • Pensions received from abroad
  • Any other source

The said earnings can be deposited in this account. The amount deposited in an NRO account in foreign currency gets converted to Indian currency (rupees). This account is needed when an NRI wants to manage his earning in India in Indian currency.

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 Opening of an NRO Account:

  1. NRO Account can be opened directly by opening the account designated.
  2. This account can be opened by converting an existing Savings Account to NRO bank account

The NRO account can be of any type:

  • Saving Bank
  • Current Account
  • Term Deposit
  • Recurring Deposit

The person applying for opening this bank account must be an NRI as defined under FEMA (Foreign Exchange Management Act)

Documents required for opening the account: 

  • A form is to be filled up for opening the account. In case an existing account is converted to NRO account, a form for the conversion of the account is filled up.
  • Proof of address – Any document showing residential address in a foreign land will act as address proof. The address can be verified through Government Issued ID card, bank statement of the customer, rent receipt, appointment letter issued by Company Office Abroad having address mentioned in the letterhead.
  • Valid passport, visa, work permit, PIO card – as applicable
  • PAN Card- some banks may require PAN card to open the account.

In case these documents are sent from abroad, they have to be attested by the Indian Embassy. Some banks may accept the forms attested by their own foreign (overseas) branch official or any foreign branch of Indian Nationalized bank or Notary.

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Apart from the above-stated documents, recent coloured passport size photographs are also required.

Submission of documents and verification:

The bank verifies the documents submitted. The account is opened or renamed as NRO bank account. 

Some banks may also insist upon credit card statement, existing bank account statement and utility bills for a specified period.

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How is an NRO account beneficial?

This bank account helps in managing the earnings while sitting abroad. It is also used to buy IPOs, Mutual funds etc. Money parked in NRO account can be transferred abroad subject to the exchange rate. Interest earnings from this account are fully repatriated but only after TDS.