NRO SAVINGS ACCOUNT
Right from repatriating funds after applicable tax payments to operating the account through the various direct banking channels, experience hassle-free banking from any corner of the world.
Features & Benefits
Why choose this product:
- Manage your Rupee funds conveniently in India from anywhere in the world
- Give your dependents access to your funds
- Earn higher interest rates
on your account
- Withdraw cash and shop in India with your EasyShop NRO Debit Card
- Entrust a relative or friend with an additional ATM Card
- Local representative can operate the account with a Letter of Mandate is an authorization given to a person to operate the customers bank account on his behalf
Managing your account
- Open an NRO Account jointly with an Indian Resident
- Conduct transactions online, 24x7 securely with NetBanking
- Manage your account easily with PhoneBanking
- Bank from any metro in India with Intercity Banking
- Pay utility bills – electricity, phone, mobile phone – payment by a simple registration
- Get a personalised cheque book
- Appoint a beneficiary to operate the account with the nomination facility
- Get your account details in the monthly statements free
Transferring money to and from your account
To transfer money to your NRO account, you can:
- Transfer funds from abroad in a freely convertible foreign currency These are foreign currencies that can be exchanged easily with other currencies and are recognised by the international market.
- Present foreign currency notes / traveller's cheques brought in by you on your visit to India
- Directly remit the amount to us from your overseas bank account
- Transfer funds from an existing NRE / FCNR Account held in other banks in India
You need to maintain an Average Monthly Balance(AMB) of Rs. 10,000. In case your Average Monthly Balance dips below the required amount, then you will be charged a fee for non maintenance of AMB as below:-
Charges for non maintenance of Average Monthly Balance (AMB) on NRO Savings Account For Urban / Metro branches:
- If AMB in the account is between Rs 5,000 to Rs 10,000 - Rs 250/- per month would be levied.
- If AMB is less than Rs 5,000 - Rs 350/- per month would be levied.
Interest earned on NRO Savings Account / NRO Fixed Deposit is subject to Tax deduction at source*.W.e.f Aug 09, applicable TDS rates are:
Interest on Deposit Tax Rate Surcharge Education Cess Total NRO 30% - 3% 30.90%
As per section 206AA introduced by Finance (No. 2) Act, 2009 w.e.f 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN Number to the deductor, failing which TDS shall be deducted at the maximum marginal rate or 30.90% whichever is higher.
The interest on NRO Accounts / Deposits and PIS transactions would be covered by the said rule
* TDS, when due and applicable will be deducted in accordance with the provisions of the Income Tax Act, 1961 and the Rules thereunder as in force. Such TDS shall be recovered from saving/current/demand deposit a/c(s).
Double Taxation Avoidance Agreement (DTAA)
Double Taxation Avoidance Agreement (DTAA) is an agreement entered by India with various countries (Click here for list of DTAA Countries). Under the current DTAA provisions, you can enjoy concessional rate of Tax Deducted at Source (TDS), providing a higher yield as compared to the regular NRO FD offered today.
If you are desirous of availing the tax rate deduction as per the DTAA, the same will be applicable once you submit the relevant documents along with your PAN Number to us by March 15th, every year. PAN updation is mandatory to avail of DTAA.
Also, please note that as per recent amendment to the Indian Income Tax Act as announced in Union Budget 2012, NRIs who wish to avail DTAA benefit have to mandatorily provide 'Tax Residency Certificate (TRC)' to the deductor (Bank). This is applicable for all NR customers who wish to avail DTAA benefit with effect from 1st April 2012.
Hence, the below mentioned documentation is required per Customer ID to avail DTAA benefit:-
- DTAA Annexure in original
- Tax Residency Certificate (TRC) latest copy duly self-attested by the client
- PAN Card copy duly self-attested by the client
In case you have registered for DTAA benefit earlier or wish to register for the same, kindly provide latest copy of TRC to avail the DTAA rate for current financial year, failing which the bank will deduct TDS on interest earned on your NRO deposits at 30.90%.
Click here to download the format of a request letter that can be used by you to submit to your tax/government authority to obtain a TRC.
Disclaimer: This letter format is being provided to you by the Bank for your convenience so that you do not miss out any of the mandatory details required to be mentioned in the TRC. You should check in your country if there is any format prescribed for applying for a TRC and use the same instead of the above letter format.
Kindly refer to the below link for any further details on DTAA agreements between India and other countries:
- Photocopy of the pages of the passport containing passport details and personal details of all applicants
- Copy of valid visa / work permit
- One passport photograph of each applicant
- One document confirming either the overseas or Indian address. The address on the document has to match the address mentioned in the application form.
Incase, you cannot come to our branch for account opening and you reside in a non FATF country, all photocopies of the above documents to be attested by Indian Embassy or by a Notary.
Incase,you cannot come to our branch for account opening and you reside in a FATF country, then either all photocopies of the above documents to be attested by an Indian Embassy or Notary or by a Banker overseas If the documents are not certified then all documents need to be self signed and submitted along with one additional document.
You are eligible if you are a Non-Resident individual of Indian nationality or of Indian origin.
In what currency is my NRO Savings Account maintained?
Your NRO Savings Account is maintained in Indian Rupees.
What is the minimum amount with which I can open an NRO Savings Account?
The minimum amount required to open an NRO Savings Account is INR 10,000 or its equivalent in foreign currency. You would be required to maintain an Average Monthly Balance of INR 10,000/- only.
What is the frequency of interest payment on my NRO Savings Account?
Effective from 1st April and as per RBI mandate, Savings Bank interest will be calculated on the daily balances maintained in your account, at a rate of interest as specified by RBI from time to time (existing rate is 4% p.a.). The Savings Bank interest will be paid at half yearly intervals on 30th September & 31st March each year.
What do I get against my NRO Savings Account?
You get a cheque book and an ATM Card against your NRO Savings Account. You can also request for a domestic NRO Debit Card.
What are the permissible debits/credits to the NRO Savings Account?
There are no restrictions on the debits from NRO Savings Account. Credit of funds representing legitimate dues of the account holder from local sources for e.g. current income in India like rent, etc. and proceeds of remittances received from abroad through normal banking channels can be freely credited.
Can I repatriate funds from my NRO Savings Account?
You can repatriate up to USD 1 million, for bonafide purposes, per financial year from balances in NRO Accounts subject to payment of applicable taxes. The limit of USD 1 million per year includes sale proceeds of immovable properties held by NRIs/PIO (Person of Indian Origin) for a period of 10 years. In case a property is sold after being held for less than 10 years, remittance can be made if the sale proceeds have been held by the NRI/PIO for the balance period in eligible investments.
What taxes am I liable to pay if I have an NRO Savings Account?
The interest is subject to income tax deduction at source @ 30% plus applicable surcharge plus education cess.
Interest on Deposit Tax Rate Surcharge Education Cess Total NRO 30% - 3% 30.90% Can I have joint account holders for my NRO Savings Account?
Yes. You can hold an account jointly with resident or non-resident Indian(s). Alternately, you can authorise an Indian resident to operate your account by submitting a mandate letter.
If I am visiting India, can I use Travellers Cheques or foreign currency to open an account or credit my existing NRO Savings Account?
Travellers Cheques can be used to credit/open the account. If the foreign currency notes brought by you exceed USD 5,000/- or the combined value of Travellers Cheques and notes exceed USD 10,000/-, then you have to submit a Currency Declaration Form (CDF) to the customs authorities on arrival in India. You must produce the CDF for endorsement by the Bank when you submit the money for opening/credit to an account
Can I transfer funds from my existing NRE Accounts to open NRO Savings Account?
Yes. You can transfer funds from your existing NRE Accounts to open NRO Savings Account.
How can I send a remittance for credit of funds in my NRO Savings Account?
Please click here to know more about remittances to your NRO Savings Account in India.
What are the payment services available for my NRO Savings Account?
With HDFC Bank's Payment Services, you can bid goodbye to queues and paper work. Our range of payment options makes it easy for you to pay for a variety of utilities and services. Please click here to know more about Payment Services.
How do I access my NRO Savings Account while I am abroad? What are the fees and charges for the NRO Savings Account?
Please click here to know more about fees and charges.
How can i add/modify/delete a nominee for my NRO Savings Account?
Kindly submit the respective form duly filled and signed at your nearest branch. You may download the form from our website ( Visit www.hdfcbank.com/nri > Click on Forms Center > NRI > Nomination Forms) and you may avail of our PO box facility to send your form.
For every new account (savings, current or fixed deposit), a fresh nomination form needs to be submitted. The same can be submitted at the time of account opening itself or later. For deposits booked through NetBanking, the nomination can be replicated as maintained in Savings account or you can choose a different nominee if the account is in single applicant's name.