Non-Resident Ordinary Account

Benefits

• Standing instructions can be undertaken for periodic payments of insurance premia, school fees, etc.
• Loans are permitted against the security of NRO term deposits as per the prevailing RBI guidelines.
• Nomination facility is available.
• Interest on the deposit is taxable under Indian Income Tax
• Funds held in these accounts by NRIs can be repatriated to the extent of current income plus USD 1 million per financial year after payment of applicable taxes, as per the extant RBI guidelines
• Transfer to NRE account is permitted up to USD 1.00 mio per Financial Year within the overall ceiling of USD 1.00 mio after payment of applicable taxes and production of CA certificate

Type of account

• Account can be opened in the form of current, savings, recurring and term deposits.

Salient Features

• Accounts can be opened by remittances from abroad, deposit of foreign exchange brought into India , transfer from existing self NRE/FCNR accounts.
• Accounts can be opened jointly with resident Indian / NRI.
• Non-Resident Indians can appoint residents to operate their NRO accounts for local payments through a power of attorney.
• Withdrawals for local payments allowed as per the prevailing RBI guidelines.
• Account can be opened only in Indian rupees