NRO Account
NRO Account
- Features
- Eligibility
- Permissible Credits
- Types Of Accounts
- Loans Against NRO Deposits
- Funds Transfer From NRO To Overseas Account
- Procedure To Open An NRO Account
- Joint Account Of Non-residents With Residents
Features
- SMS Alerts
- Multi-City Cheque book (MCC)
- Domestic Debit Card
- Internet banking
- NRI Family Card
- To park India based current income in Rupees in India
- Account can be opened either individually or jointly with other NRIs / PIOs / OCIs
- Account types permissible:
- Savings Bank
- Current Account
- Term Deposit
- Special Term Deposit
- Recurring Deposit
- Funds deposited in the account will be in the form of transfer from NRE / NRO / FCNR (B) accounts or fresh remittance from overseas
- Account can be opened with resident Indians on "former or survivor" basis
- Account can be withdrawn for making local payments in Rupees
- Interest income is subject to deduction of tax at source @ 30.90%. In case, depositor is resident of any of those countries with whom India has a DTAA, the tax will be deducted as per DTAA (Double Taxation Avoidance Agreement) agreed between India and the respective country
- Rupee loan available against NRO Deposits
- Tenor Of Deposits For TDR: 7 days to 10 years
- Tenor Of Deposits For STDR: 6 months to 10 years
- Tenor Of Deposits For RD: 12 months to 10 years
- Please click here for NRO Savings Bank Account Interest Rates
- Please click here for NRO Deposits (TDR / STDR / RD)Interest Rates
Eligibility For NRO Account Opening
| Eligibility Conditions For Opening Of Resident Indian Or Nri Accounts | ||||
|---|---|---|---|---|
| Account Type | Domestic / Resident Accounts | Non Resident Ordinary (NRO) Accounts | Non Resident External (NRE) Accounts | Foreign Currency Non-resident (Bank) {FCNR (B)} Accounts |
| Residential Status | ||||
| NRI | Not-permitted 1 | Permitted2,7 | Permitted2 | Permitted2 |
| PIO | Not-permitted1 | Permitted 2, 3, 7 | Permitted2, 3 | Permitted2, 3 |
| OCI | Permitted in certain cases1.1 | Permitted2, 3, 7 | Permitted2, 3 | Permitted2, 3 |
| Foreign Nationals on employment in India | Permitted3, 4 | Not-permitted4 | Not-permitted | Not-permitted |
| Foreign Students studying in India | Not-permitted | Permitted3, 5 | Not-permitted | Not-permitted |
| Foreign Tourists on short visit to India | Not-permitted | Permitted3, 6 | Not-permitted | Not-permitted |
1 However a joint account with Resident Indian (RI) who is a close relative can be opened subject to following conditions:
- Mode of operation permitted is 'Either or Survivor' only
- The RI will be the primary/first account holder in the joint account and NRI (PIO / OCI) will be the second applicant
1.1 When OCI comes to India with an intention to stay for an indefinite period and stays more than 182 days, he/she loses the privileges available to NRIs/PIOs/OCIs. Such OCI is required re- designate / convert his/her NRE/NRO/FCNR Accounts to resident account, or NRE/FCNB account to RFC account as the case may be. Further, an OCI can open all types of accounts allowed to a Resident customer.
2 A joint account with Resident Indian (RI) who is a close relative can also be opened subject to following conditions:
- Mode of operation permitted is 'Former (NRI) or Survivor' only
- The NRI (PIO / OCI) will be the primary/first account holder in the joint account and RI will be the second applicant
3 Following conditions applicable:
- Pakistani National will require a prior approval from RBI before opening the account.
- Bangladesh National to have a valid visa and residential permit issued by Foreigner Registration Office (FRO) / Foreigner Regional Registration Office (FRRO) concerned.
4 Foreign nationals who come to India on employment and on leaving the India can convert their Domestic account to NRO account, to enable them to receive their legitimate dues subject to certain conditions. But, continuation of account beyond 6 months will require RBI’s approval.
5 NRO account be opened for Foreign Students studying in India on the basis of his/her passport (with appropriate visa & immigration endorsem*nt) which contains the proof of identity and address in the home country along with a photograph and a letter offering admission from the educational institution, subject to following:
- Within a period of 30 days of opening the account, the foreign student should submit to the branch where the account is opened, a valid address proof giving local address, in the form of a rent agreement or a letter from the educational institution as a proof of living in a facility provided by the educational institution. Banks should not insist on the landlord visiting the branch for verification of rent documents and alternative means of verification of local address may be adopted by banks.
- During the 30 days period, the account should be operated with a condition of allowing foreign remittances not exceeding USD 1,000 into the account and a cap of monthly withdrawal to Rs. 50,000/-, pending verification of address.
- On submission of the proof of current address, the account would be treated as a normal NRO account, and will be operated in terms of extant instructions.
6 Continuation of account beyond 6 months will require RBI’s approval.
7 NRIs (including PIO / OCI) residing in Nepal or Bhutan are not permitted to open NRO account.
Permissible Credits
- Transfer from another Resident Indian / NRE / FCNR (B) account
- Transfer from another NRO account but only for payment of legitimate dues in India
- Fresh remittance from abroad through banking channel
- Personal cheques drawn on foreign account
- Proceeds of Foreign Currency Notes / Travelers cheques tendered by NRI / PIO / OCI, while visiting India. Amounts in excess of USD 5000 (or equivalent) in currency or USD 10,000/- (or equivalent) in Travelers cheques should be accompanied by a Currency Declaration Form
- Interest, dividend and maturity proceeds of investments made in India etc on non-repatriable basis
Types Of NRO Accounts & Deposits
Savings Bank (SB) / Current Account -
- Rupee denominated account
- Account can be opened with a zero balance
- It is preferable to fund the account upfront to avoid payment of charges for non-maintenance of Minimum Average Balance.
- Interest is paid quarterly on the daily balance in Savings Bank account. No interest is paid in Current Account.
- Minimum Deposit:
- In General Branches: As per MAB (Minimum Average Balance) criteria
- In Personal Banking Branches: Minimum total customer account/deposit balance should be Rs. 1 lakh for Metro / Urban areas and Rs. 50,000 for Semi-Urban / Rural areas
- Balances in the account are partly repatriable subject to overall ceiling of USD 1 million or equivalent in a financial year
- Nomination facility available
Term Deposits (TDR) -
- Rupee deposits of fixed tenure
- Interest is paid quarterly on Term Deposit Receipts (TDRs). It can be credited to the NRO Savings Bank account as per request of the customer.
- Minimum Deposit:
- In General Branches: Rs. 1000/-
- In Personal Banking Branches: Minimum total customer account/deposit balance should be Rs. 1 lakh for Metro / Urban areas and Rs. 50,000 for Semi-Urban / Rural areas
- Principal & interest amount are partly repatriable, subject to overall ceiling of USD 1 million or equivalent in a financial year
- Nomination facility available
- You can avail a loan/overdraft against your deposit
- Premature withdrawal permissible
- Automatic renewal on maturity for the same period but at the then prevailing rate of interest, if there are no instructions for renewal
Special Term Deposits (STDR) -
- Rupee deposits of fixed tenure
- Interest gets compounded every quarter. It is paid on maturity with the Principal.
- Minimum Deposit:
- In General Branches: Rs. 1000/-
- In Personal Banking Branches: Minimum total customer account/deposit balance should be Rs. 1 lakh for Metro / Urban areas and Rs. 50,000 for Semi-Urban / Rural areas
- Principal & interest amount are partly repatriable, subject to overall ceiling of USD 1 million or equivalent in a financial year
- Nomination facility available
- You can avail a loan/overdraft against your deposit
- Premature withdrawal permissible
- Automatic renewal on maturity for the same period but at the then prevailing rate of interest, if there are no instructions for renewal
Recurring Deposits (RD) -
Want to create a fund for your children's education or marriage or to buy a house or for a dream holiday? Whatever may be your financial goals, through our Recurring Deposit Scheme, you can save a little every month so that at the time of need you have sufficient funds to achieve your financial goals. So, set aside a small amount every month and earn at compounded rates of interest.
- Minimum monthly installment of Rs.100/-
- Nomination facility available
- You can avail a loan/overdraft against your deposit
- Premature withdrawal permissible
- No automatic renewal will happen, if there are no instructions for renewal
Premature Withdrawals
- Tenors :Premature withdrawal
- Below Rs.1 Crore
- No interest is payable if the deposit is withdrawn before 7 days
- Effective 01st April 2017, Penalty for Premature Withdrawal for Retail Term Deposits will be applicable as under:
- Description Up to Rs.5.00 lacs / Penalty (All Tenors) - 0.50%
- Description Above Rs.5.00 lacs but below Rs.1 Crore / Penalty (All Tenors) - 1%
- The interest shall be 0.50% or 1% below the rate applicable at the time of Deposits for the period Deposit has remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower.
- Rs.1 Crore & Above
- No interest is payable if the deposit is withdrawn before 7 days.
- On pre-mature withdrawal of the deposit (after completion of 7 days), interest will be paid at applicable rate for the period the deposit has actually remained with the Bank or contracted rate less Premature Penalty of 1%, whichever is lower.
Tax Implications
Income Tax as per following will be deducted at source on interest earned in the NRO accounts:
- If interest income is less than or equal to Rs. 1 crore: 30.90%
- If interest income is more than Rs. 1 crore: 34.608%
TDS on NRO deposits will be deducted on maturity or accrual basis annually, whichever occurs first.
In case, depositor is resident of any of those countries with whom India has a DTAA, the tax will be deducted as per DTAA (Double Taxation Avoidance Agreement) agreed between India and the respective country. Please click here for list of DTAA countries and corresponding TDS rates. DTAA benefit can be availed by submitting following three documents:
- Tax Residency Certificate issued by the revenue authorities of your home country
- Self-declaration (please click here to download the standard format)
- Form No. 10F (please click here to download the standard format)
Loans Against NRO Deposits
You can avail a loan in Indian rupees against the security of NRO TDR / STDR / RD deposits. The loan may be used to meet emergency financial requirements, to carry on business activities, for direct investment in India or for acquiring a flat / house in India.
You need not close the deposit prematurely, and can avail the loan at the branch where you maintain the deposit, as an overdraft or as a demand loan. Maximum loan of 90% of the face value of deposit including the interest accrued. The applicable interest rate on loan against Deposits is @ 1.00% over the rate paid on the relative deposit offered as security. For more information, please click here.
Funds Transfer From NRO To Overseas Account
From NRO to overseas account -
Repatriation up to USD 1 million or equivalent net of applicable taxes in a financial year is permitted, for bonafide purposes, subject to submission of necessary documents as applicable. You can post / courier or submit in a person a request letter for transfer of funds from NRO account to overseas account. click here here to download the standard request letter.
Funds transfer from NRO to NRE / FCNR (B) -
Transfer of funds from NRO to NRE account is permitted within the overall ceiling of USD 1 million or equivalent per financial year, subject to submission of necessary documents as applicable. You can post / courier or submit in a person a request letter for transfer of funds from NRO to NRE / FCNR (B) account. Please click here to download the standard request letter.
Procedure To Open An NROAccount
Please fill up the account opening application as per any of the following mode and send it to bank accordingly:
- Please click here to fill it online as per the process mentioned
- Please click here to download the account opening application, fill it manually and send it to your preferred home branch in India along with the attested copies of proofs & documents selected for KYC in the application
- Please fill and submit application along with proofs & documents selected for KYC in the application by visiting a SBI branch in India or overseas
Joint Account Of Non-residents With Residents
NRI/PIO/OCI customers are permitted to open and maintain their NRO accounts with their resident relative(s) (as mentioned below) as a joint holder on “Former or Survivor” basis (NRI/PIO/OCI being the former);
- they are members of a Hindu Undivided Family;
- they are husband and wife; or
- one person is related to the other in such manner as may be prescribed;
- Father (Provided that the term “Father” includes step-father)
- Mother (Provided that the term “Mother” includes step-mother)
- Son (Provided that the term “Son” includes step-son)
- Son’s wife
- Daughter
- Daughter’s husband
- Brother (Provided that the term “Brother” includes step-brother)
- Sister (Provided that the term “Sister” includes step-sister)
Last Updated On : Friday, 14-01-2022
Interest Rates
Start From
10.55% p.a.*
*T&C Apply.
View All
2.70% p.a.
less than Rs.10 Cr. w.e.f 15.10.22
3.00% p.a.
Rs.10 Cr. and above w.e.f 15.10.22
View All
2.70% p.a.
Balance below Rs. 10 crs
3.00% p.a.
Balance Rs. 10 crores and above
View All
7.00%
2 years to less than 3year
6.50%
5 years and up to 10years
View All
SEE PRODUCTS APPLY NOW
I'm an expert in banking and financial services, specializing in Non-Resident Ordinary (NRO) accounts and related concepts. I have a deep understanding of various financial instruments and regulations related to NRO accounts. My expertise is grounded in practical knowledge and experience in this domain.
NRO Account Overview: The NRO (Non-Resident Ordinary) account is designed for individuals who are non-residents of India but have income generated in India. It allows the account holder to manage and park their India-based current income in rupees within the country. Here are key features and concepts related to NRO accounts:
-
Account Types:
- Savings Bank Account
- Current Account
- Term Deposit
- Special Term Deposit
- Recurring Deposit
-
Eligibility for Opening NRO Account:
- NRIs (Non-Resident Indians)
- PIOs (Persons of Indian Origin)
- OCIs (Overseas Citizens of India)
- Foreign Nationals on employment in India
- Foreign Students studying in India
-
Joint Accounts:
- NRO accounts can be opened individually or jointly with other NRIs/PIOs/OCIs or even with resident Indians on a "former or survivor" basis.
-
Permissible Credits:
- Transfer from another Resident Indian/NRE/FCNR(B) account
- Transfer from another NRO account for legitimate dues in India
- Fresh remittance from abroad
- Personal cheques drawn on a foreign account
- Proceeds of Foreign Currency Notes/Travelers cheques
-
Tax Implications:
- Interest income is subject to deduction of tax at source (TDS) at a rate of 30.90%.
- Tax treatment varies based on the Double Taxation Avoidance Agreement (DTAA) between India and the respective country of residence.
-
Types of NRO Deposits:
- Savings Bank (SB) / Current Account
- Term Deposits (TDR)
- Special Term Deposits (STDR)
- Recurring Deposits (RD)
-
Premature Withdrawals:
- Premature withdrawal penalties apply based on the deposit amount and tenor.
-
Loans Against NRO Deposits:
- Loans in Indian rupees can be availed against the security of NRO TDR/STDR/RD deposits for various purposes.
-
Funds Transfer from NRO:
- Repatriation of funds up to USD 1 million per financial year is permitted for bonafide purposes, subject to documentation.
-
Procedure to Open an NRO Account:
- Application can be filled online or downloaded and submitted along with required documents.
-
Joint Account with Residents:
- NRI/PIO/OCI can open and maintain joint NRO accounts with resident relatives on a "former or survivor" basis.
For detailed information on interest rates, eligibility criteria, and application procedures, individuals can refer to the bank's official website or contact their nearest branch.
