For Indian citizens living abroad, managing finances outside and within India can be challenging. While a lot of NRIs send foreign earned money back home, there are also those who have to manage the money earned, saved, or invested in India. An NRO or a Non-Resident Ordinary account can be a valuable banking solution for such people. Here, we answer some frequently asked questions about NRO accounts to help you understand how they work and how they can benefit you.
Q: What is an NRO account?
A: An NRO account allows NRIs to deposit and manage any earnings made in India such as rental income, business profits, interest etc.
Q: Who can open an NRO account?
A: NRIs (Non-Resident Indians), PIOs (Person of Indian Origin) and Overseas Citizens of India (OCIs) are eligible to open an NRO account.
Q: Are joint accounts permitted?
A: Yes, joint accounts are permitted with other NRIs or PIOs. Non-Resident Ordinary (NRO) joint accounts with a resident Indian can only be opened on a "Former or Survivor" basis. Contact us to learn more about joint NRO accounts.
Q: What type of account is an NRO account?
A: NRO accounts can be current, savings, or term deposit accounts.
Q: Is the interest earned on NRO accounts taxable?
A: Yes, interest earned on an NRO account is subject to taxes in India.
Q: What is the difference between an NRE and an NRO account? Can a person have both?
A: An NRO account is meant to manage income earned within India. NRE, on the other hand, allows repatriation of foreign earnings in a tax-free manner. Yes, a person can hold both NRE and NRO accounts simultaneously.
Q: Do I need an NRO account if I already have a savings account?
A: Yes, if you are or have recently become an NRI, it is necessary to convert your savings account into an NRO account to be compliant with the Indian law and the Indian tax system.
Q: How can I open an NRO savings account?
A: You can apply online to open an NRO savings account. You can also get in touch with us to learn more on email at [email protected].
Q: Can I access my NRO account from abroad?
A: Yes, you can manage your NRO account from outside India through internet banking or mobile applications. SIB Mirror+ is South Indian Bank’s next-gen mobile app that allows you the ease of banking from anywhere.
Q: Can I use my NRO account to pay for expenses in India?
A: Yes, you can use your NRO account to make payments in India.
Q: What happens to the NRO account if the person returns to India?
A: If the person returns to India and regains resident status, they can convert their account to a regular resident account.
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Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian 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/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.