What is an NRO Account?

A Non-Resident Ordinary (NRO) Account is a popular way for many Non-Resident Indians (NRIs) to manage their deposits or income earned in India such as dividends, pension, rent, etc. This account allows you to receive funds in either Indian or foreign currency. However, only Indian currency can be withdrawn as NRO Accounts are kept in Indian currency and cannot be freely repatriated into any foreign currency.

You can apply for an NRO Account jointly with an Indian resident on Former or Survivor basis only. If you wish, you can also open an NRO Account with another Non-Resident Indian. Also, you can very easily to transfer money from your current NRE account to your NRO Account.  However, the interest you earn in this account is subject to Tax Deducted at Source (TDS).

In short, an NRO Account helps an NRI to manage their income earned in India.

Features of an NRO Account:

Here are some features of an NRO Account you can consider while opening an account-

  • With an NRO Account, you are free to repatriate or transfer the interest you earn on the principal amount deposited. You can also transfer the principal amount within specified limits. As per rules, you can transfer up to USD 1 million in one financial year post payment of applicable taxes.
  • The interest you earn on an NRO Account is taxable at 30%, deductible at source. It is noteworthy that the income you earn in India, deposited in an NRO Account can include rent, dividend, pension, etc.
  • If your finances include your income earned in India and you want an account to manage it within India, an NRO Account is an ideal option.

All major banks like HDFC Bank offer the facility of opening an NRO Account.  You can also read more about NRI accounts here.

Looking to open an NRO Account? Click here to get started!


* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.