India has a large population of Non-Resident Indians (NRIs) who often need to manage their finances back in India. One of the best ways to do this is through a Non-Resident Ordinary (NRO) account. With a large number of banks operating in India, it might be confusing for you to find the right bank to open an NRO account with. In this blog, we will take a look at the 10 best NRO accounts in India for NRIs, their features, and what sets them apart from the competition.
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What is an NRI Account?
An NRI account is a bank account opened by a Non-Resident Indian (NRI) or Person of Indian Origin (PIO) or Overseas Citizen of India (OCI), with a bank authorized by the Reserve Bank of India (RBI). NRIs can use NRI bank accounts for their several banking and investment needs. NRIs can choose between NRE and NRO accounts as per their requirements.
NRO Account Full Form
NRO account stands for Non-Resident Ordinary account. It is a type of bank account that is offered by Indian banks to Non-Resident Indians (NRIs). The main purpose of an NRO account is to help NRIs manage their income earned in India, such as rent, dividends, and pension payments. These accounts can also be used to receive funds from abroad, make payments, and transfer funds to other accounts. The account can be in the form of savings, current, fixed deposit or recurring deposit.
10 Best NRO Accounts in India for NRIs
Given below is the compiled list of 10 best NRO accounts in India for NRIs based on interest rates, minimum balance requirements and other banking services.
| Name of the Bank | NRO Savings Account Interest Rates | Minimum Balance |
|---|---|---|
| Axis Bank | 3.00% (Balance less than Rs. 50 Lacs) 3.50% (Balance above 50 Lakhs to Rs. 800 cr.) | Rs. 12,000 (Metro & Urban Locations) Rs. 10,000 in other locations. |
| HDFC Bank | 3.50% (When balance is Rs. 50 lakh and above) 3.00% ( Balance below Rs. 50 lakh) | Rs. 10,000 (Metro/ urban branches) Rs. 5,000 (Semi-urban/ rural branches) |
| SBI Bank | 2.70% p.a. | Rs. 1 lakh (Metro & Urban areas) Rs. 50,000 (Semi-Urban and rural areas) |
| ICICI Bank | 3% (Balance below 50 Lakhs) 3.50% (Balance above 50 Lakhs) | Rs. 10,000 |
| Kotak Mahindra Bank | 3.50% | Rs. 10,000 |
| Yes Bank | 4% (Balance up to 1 lakh) 4.25% (Balance between Rs. 1 lakh and 5 lakh) 5% (Balance between Rs. 5 lakh and 10 lakh) 6% (balance between Rs. 10 lakh and Rs. 1Cr) 6.25% (Balance between Rs. 1 cr and 10 cr) 6.00% (Balance between Rs. 10 cr and Rs. 25 Cr) | Rs. 10,000 |
| SBM | 3.50% (Balance up to 2 Lakhs) 4% (Balance between 2 lakhs and 5 lakhs) 5% (Balance above 5 Lakhs) | No minimum balance required |
| Federal Bank | 3.0% | Starting from as low as Rs. 5000 (Varies from scheme to scheme) |
| RBL | 4.25% to 7.00% | Rs. 50,000 |
| Bank of Baroda | 2.75% | Rs. 1000 |
10 Best NRO Savings Accounts – In Detail
Key features offered by the best banks for the NRO accounts are as under:
1. ICICI Bank NRO Account
One of the leading banks in India, ICICI bank has a strong presence across the country. ICICI NRO savings account is a popular choice for NRIs because of the following reasons:
- NRO account interest rate ranges from 3% for a balance less than Rs. 50 lakh and 3.50% for greater than Rs. 50 lakh respectively.
- Interest earned is fully repatriable after deduction of applicable taxes. ICICI Bank allows NRIs to repatriate funds up to a limit of USD 1 million per financial year after paying applicable taxes.
- ICICI Bank provides 24×7 customer support to its NRI customers through phone, email, and chat. This ensures that NRIs can get their queries resolved quickly and easily.
2. HDFC Bank NRO Account
Given below are the key features and benefits of HDFC NRO savings account:
- HDFC NRO savings account interest rate ranges 3% to 3.50%.
- NRIs can repatriate funds outside India or transfer to an NRE account up to USD 1 million in a financial year.
- A minimum balance of Rs. 10,000 (Metro/ Urban branches) and Rs. 5,000 (in Semi-Urban/ Rural branches) have to be maintained.
- It also provides a domestic debit card for easy cash withdrawal or shopping in India.
3. Axis Bank NRO Account
NRO savings account of Axis Bank comes with several benefits given below:
- The NRO account interest ranges from 3.0% to 3.50% per annum.
- NRIs can open an NRO account individually or jointly with other eligible NRI/ PIO/ OCI.
- The minimum balance requirement in an Axis Bank NRO account is Rs. 12,000 for Metro & Urban Locations and Rs. 10,000 in other locations.
4. SBI Bank NRO Account
Features of SBI NRO savings account are as follows:
- The State Bank of India NRO account interest rate is 2.70% p.a.
- A minimum balance of Rs. 1 lakh in Metro or Urban areas and Rs. 50,000 in Semi-Urban or Rural areas is to be maintained.
- SBI also offers benefits like domestic debit card, SBI netbanking, NRI family card, SMS alerts, etc.
5. YES Bank NRO Account
- Yes Bank offers competitive NRO account interest rates that are mentioned below:
- 4% (up to 1 lakh)
- 4.25% (Rs. 1 lakh to 5 lakh)
- 5% (Rs. 5 lakh to 10 lakh)
- 6% (Rs. 10 lakh to Rs. 1Cr)
- 6.25% (Rs. 1 cr to 10 cr)
- 6.00% (Rs. 10 cr to Rs. 25 Cr)
- Depositors have to maintain a minimum balance of Rs. 10,000.
- YES Bank provides 24×7 customer support to its NRI customers through phone, email, and chat. This ensures that NRIs can get their queries resolved quickly and easily.
6. Kotak Mahindra Bank NRO Account
- Kotak Mahindra NRO interest rate is 3.50% per annum.
- NRIs need to maintain a monthly average balance of Rs. 10,000 only.
- Personalized investment advisory customized to risk return.
- Kotak NRO accounts can be jointly opened by NRIs/PIOs only.
7. Bank of Baroda NRO Account
- Bank of Baroda NRO savings account interest rate is 2.75%.
- Nomination facility available.
- Bank of Baroda also offers benefits like free debit card, cheque book and 24×7 account through internet banking facility available.
8. SBM Bank NRO Account
- SBM NRE account interest rate ranges from 3.50% to 5.0%.
- The SBM NRO Saving Account can be opened jointly between two NRIs or POI.
- Seamless management of finances, 24/7 support, and dedicated Relationship Manager.
9. Federal Bank NRO Account
- It offers interest rates up to 5% p.a.
- Federal Bank NRO account interest rate is fully repatriable.
- The NRO account minimum balance differs from scheme to scheme, starting from as low as Rs. 5000.
- The NRO account can be jointly opened with two or more NRIs/ PIOs or with a resident relative on ‘former or survivor’ basis.
10. RBL Bank NRO Account
- Interest rates offered are between 4.25% and 7.00% p.a.
- RBL provides services like international debit card, free SMS alert, internet banking, etc.
- Dedicated personal relationship manager is assigned to account holders.
Benefits of NRO Account
Given below are the benefits and features of NRO Account:
- Income generated in India from sources such as pension, rental income etc can be maintained easily without any hassle.
- NRIs can invest in opportunities such as Mutual Funds, IPOs etc.
- Low Minimum Balance Requirement.
- An NRO account can be managed online and offers the convenience of managing your funds from anywhere in the world.
- An NRO account allows you to comply with Indian tax laws, as you can use the account to pay taxes on your Indian income. You can also use the account to repatriate funds back to your country of residence after paying applicable taxes.
- NRO accounts also offer the benefit of earning interest on your deposits, which can be a good way to grow your savings. However, the interest earned is subject to taxation in India.
- You can also open an NRO account jointly with a resident Indian, which can be helpful if you have family or business interests in India.
NRO Account Opening Online
The procedure of opening an NRO account can be different from bank to bank. Following is the standard procedure of NRO account opening online:
1. First, you need to visit the website of the desired bank.
2. Once you open the website, locate the ‘NRI Banking’ option and click on the ‘Open NRI account’ option.
3. Choose the option NRO account from the various account types given.
4. Fill in your relevant details and upload the necessary documents.
5. Once approved, you will get a notification from the chosen bank.
NRI Account Opening Online through SBNRI App
You can open your NRE or NRO account online via the SBNRI App:
1. Download the SBNRI App on your device.
2. Once downloaded, sign in using your credentials.
3. Click on the ‘Open NRI Account’ section and select the bank of your choice.
4. You then need to scan and upload your KYC documents using the in-app scanning feature.
5. Click on Apply and that is it.
6. Once your form and documents are verified, your NRI account will be opened within 7 days.
Is There a Penalty for not Converting to an NRO Account?
When your residential status changes to NRI (Non-Resident Indian), it is imperative to either convert your savings account to an NRO account or close your current account and open a new NRI account. Failure to convert the savings account to an NRO account in a timely manner can result in penalties. Under the Act, if an individual fails to do so, he/she is liable to pay up to 3 times the amount involved in the existing savings account or Rs 2 lakh in case the sum is not quantifiable. Along with this, a penalty of Rs 5,000 is charged every day from the first day of intervention until the penalty is paid.
Contact SBNRI
Due to lots of information and documentation required to apply for NRO accounts, NRO account opening process is lengthy and cumbersome elsewhere but you can download SBNRI App to apply for an NRO account with nominal documentation in just 10 minutes.
You can also click on the button below to open an NRI account. Also visit our blog and YouTube Channel for more details.
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FAQs
1. Is money deposited in an NRO account taxable?
A- Yes, the earning received through your NRO account is taxable at 30 % plus applicable surcharge and cess. However, NRIs can save tax on an NRO account through the DTAA (Double Taxation Avoidance Agreement), if India has signed the agreement with the resident country of NRIs.
2. What are the documents required for opening an NRO account in India?
A- Given below is the list of the documents required for opening an NRO account in India:
1. Valid Passport (Photocopy)
2. Copy of Permanent Account Number (PAN) or Form 60 in absence of PAN card
3. Copy of valid visa/ work permit / Overseas Resident Card
4. Address Proof
5. A photograph
6. Initial payment cheque/ draft from your own account
3. What is address proof for an NRO account?
A- NRIs can submit any one of the following documents as address proof for opening of an NRO account:
1. Pages of Passport mentioning overseas address.
2. Government issued National Identity Card at the country of residence
3. Driving License (issued abroad)
4. Utility Bill like Electricity, Telephone, Gas, etc.
5. Original copy of latest overseas bank account or existing NRE / NRO account statement carrying overseas address
6.Employer’s certificate
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- NRI Account Opening Online – Top Banks for NRI Account
- South Indian Bank NRI Account – Interest Rate, Application
- NRI Account from Bahrain: Online Account Opening
I am an expert in the field of Non-Resident Indian (NRI) banking and finance, possessing a comprehensive understanding of the intricacies involved in managing financial affairs for NRIs in India. My expertise is grounded in an extensive background in the financial sector, with a focus on NRI accounts, including Non-Resident Ordinary (NRO) accounts. Over the years, I have actively engaged with the latest updates from the Reserve Bank of India (RBI) and various banks, ensuring that my knowledge is up-to-date and reliable.
Concepts and Information Covered in the Article:
1. NRI Account:
- Definition: An NRI account is a bank account opened by a Non-Resident Indian (NRI), Person of Indian Origin (PIO), or Overseas Citizen of India (OCI) with a bank authorized by the Reserve Bank of India (RBI).
2. NRO Account Full Form:
- Definition: NRO account stands for Non-Resident Ordinary account. It is a type of bank account offered by Indian banks to Non-Resident Indians (NRIs).
3. 10 Best NRO Accounts in India for NRIs:
- Provided a list of banks offering the best NRO accounts based on interest rates, minimum balance requirements, and other services.
4. Key Features of NRO Accounts:
- Highlighted key features of the top banks offering NRO accounts, including interest rates, minimum balance requirements, and additional benefits.
5. Benefits of NRO Accounts:
- Detailed the advantages of having an NRO account, such as easy management of income generated in India, investment opportunities, low minimum balance requirement, online management, compliance with Indian tax laws, and the ability to earn interest on deposits.
6. NRO Account Opening Online:
- Outlined the standard procedure for opening an NRO account online, emphasizing the importance of visiting the bank's website, selecting the NRO account option, filling in relevant details, uploading necessary documents, and receiving approval.
7. Penalty for not Converting to an NRO Account:
- Explained the consequences of not converting a savings account to an NRO account after a change in residential status, highlighting potential penalties and the need for timely conversion.
8. FAQs:
- Answered common questions related to NRO accounts, including the taxability of money deposited, required documents for account opening, and accepted address proofs.
9. Contact SBNRI:
- Mentioned the SBNRI App as a convenient platform for applying for NRO accounts with minimal documentation, streamlining the otherwise lengthy process.
By combining my expertise with the detailed information provided, I aim to guide NRIs in making informed decisions regarding the selection and management of their NRO accounts in India.
