Non-Resident (Ordinary) Accounts Deposit Scheme (NRO)
Non- Resident Indians (NRI), Persons of Indian Origin (PIO) and Overseas Citizens of India (OCIs) can open Accounts under the scheme.
A Non-Resident Ordinary (NRO) Account is a type of account for many Non-Resident Indians (NRIs) to manage their deposits or income earned within India such as pension, rent, dividend income gifts and proceeds from the sale of immovable property.
DESCRIPTION:
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The Account is a rupee dominated account.
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The Account can be held jointly with an Indian resident on Former or Survivor basis only. Alternatively, the same can also be done with another Non-Resident Indian.
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This account type allows the receipt of funds in either Indian or foreign currency.
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The permissible credits in the account include proceeds of remittances, any foreign currency, legitimate dues in India of the account holder.
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The income earned within India such as pension, rent, dividend etc. and gifts and proceeds from the sale of immovable property can be credited to this account.
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The interest earned in this account type is subject to Tax Deducted at Source (TDS).
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Opening of accounts by individuals / entities of Bangladesh / Pakistan nationality / ownership require prior approval of the Reserve Bank.
Types of accounts
Current, Savings, Recurring or Fixed Deposit Accounts
Non-Resident Ordinary Rupee Account (NRO Account)
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Any person resident outside India may open NRO account with any branch for the purpose of putting through bona fide transaction in rupees.
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Opening of accounts by individual/ entities of Pakistan and entities of Bangladesh require prior approval of Reserve Bank of India.
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NRO (current/savings) account can also be opened by a foreign national of non-Indian origin visiting India/ foreign national students.
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Foreign Nationals on Non-Indian origin (for period not exceeding 6 Months)
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Those Indian residents, who are in employment, studying and staying permanently abroad and foreign nationals (except of Pakistan and Bangladesh), with their origin in India.
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Students proceeding abroad for higher studies are treated as Non-residents.
NRO accounts may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts.
Account should be denominated in Indian Rupees.
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The accounts can also be opened with / out of the funds received as foreign inward remittances in convertible currency through normal banking channel. The Foreign Currency Travellers Cheques / Notes may be accepted during temporary visits of the NRI, for credit to account.
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The accounts can also be opened with the Legitimate local dues denominated in Indian Rupees viz. rent / dividend / pension / interest / sale proceeds of assets etc.
Such accounts may be designated as Non-resident (Ordinary) Accounts.
Yes. The accounts may be held jointly with residents only on ‘former of survivor’ basis.NRIs and PIOs may hold an NRO account jointly with other NRIs and PIOs.
Nomination is allowed in favour of a resident or Non-resident Indian.
Similar to maturity periods available under domestic deposit schemes.
The Interest Rate payable on NRO accounts is same as that is payable under domestic deposit schemes.
Yes, as per rates applicable for the relevant financial year.
Yes. Operations restricted to local disbursements (other than gifts to resident),including for investments subject to compliance of relevant regulations. But remittances/repatriation abroad may be made only to account holder.
At the request of all the joint holders, Bank may allow the addition or deletion of name/s of joint account holder/s, as per rules.
Permissible Credits
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Proceeds of freely convertible currency foreign inward remittances, received through normal banking channels.
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The Foreign Currency Travellers Cheques / Notes may be accepted during temporary visits of the NRI.
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Transfers from rupee accounts of non-resident banks.
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Legitimate dues in India of the account holder. This includes current income like rent, dividend, pension, interest, etc. as also sale proceeds of Assets including immovable property acquired out of rupee/foreign currency funds or by way of legacy/inheritance.
Permissible Debits
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All local payments in rupees including payments for investments in India subject to compliance with the relevant regulations made by the Reserve Bank.
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Remittance outside India of current income like rent, dividend, pension, interest, etc.in India of the account holder.
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NRI/PIO may remit current income from the balances held in NRO account an amount not exceeding USD one million includes sale proceeds of immovable properties per financial year, subject to payment of applicable taxes.
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NRI/PIO may remit from the balances held in NRO account an amount not exceeding USD one million per financial year, subject to payment of applicable taxes.
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The limit of USD 1 million per financial year includes sale proceeds of immovable properties held by NRIs/ PIOs.
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Other than current income and the limit of USD 1 Million per financial year applicable to NRIs/PIOs, balances in NRO accounts cannot be repatriated without the prior approval of RBI.
DEBIT-cum-ATM Card facility is available for NRE account holders. The same is provided, upon request.
Yes, the Internet Banking Service (IBS) is available to NRO a/c holders. The same is provided, upon request For more details, please visit our website www.pnbindia.com LINK - INTERNET BANKING ....Internet Banking for NRIs.
Yes, As per guidelines applicable on domestic deposits.
Non-resident account holders and to third parties may be granted loan in Rupees against the security of fixed deposits subject to certain terms and conditions.
In such cases, payment of interest and repayment of loan, availed when the status was resident Indian, may be made by inward remittance or out of legitimate resources in India of the person concerned, even though the status has changed to NRI.
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The amount due / payable to non-resident Indian nominee of the NRO account of a deceased account holder shall be credited to NRO account of the nominee.
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The amount payable to resident nominee of the NRO account of a deceased account holder shall be credited to resident account of the nominee with a bank in India
Banks may allow NRO deposits NRIs/PIOs, who return to India for permanent settlement, to continue till maturity at the contracted rate of interest, if desired, as per rules.
Yes. At the request of the depositor, Bank allows premature withdrawal.
Yes. As per guidelines applicable on domestic deposits. However in NRO Sugam Term Deposit no penal interest is charged on premature closure.