NRO account, meaning a Non-Resident Ordinary account, is a financial account designated for NRIs and PIOs.
In this article, we’re going to share how NRO accounts are used and answer the most frequent questions we receive about them.
This is part of our free series on banking in India, covering topics like opening an NRI bank account, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- NRO Account Meaning
- What Is the Purpose of an NRO Account?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
NRO Account Meaning
NRO account, meaning a Non-Resident Ordinary bank account, is a local bank account for Indian-sourced income and to support local financial transactions. An NRO account can be opened by Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
What Is the Purpose of an NRO Account?
The purpose of an NRO account is to provide non-resident Indians with a way to manage their Indian-sourced income while staying compliant with the rules and regulations set by the Reserve Bank of India.
Of course, the specific income sourced in India varies depending on the individual. But, in most cases, non-resident Indians use NRO accounts to manage income from rental properties, dividends from local investments, income from local pension plans, and more.
Additionally, NRO accounts offer non-resident Indians a way to manage their local financial commitments and conduct transactions in Indian rupees within India.
Now let’s take a look at two important questions we receive about NRO accounts and their meaning before diving into the frequently asked questions.
Do NRO Accounts Have Interest Rates?
Yes, NRO accounts do offer interest rates to non-resident Indians. That said, the available interest rates will vary from bank to bank. So, if you are specifically looking for the highest interest rates possible, you should consider reviewing all of the available options before deciding where to open accounts.
What Are NRO Deposits?
NRO deposits refer to income that is sourced by a non-resident Indian from within India, which is then deposited into a Non-Resident Ordinary bank account. Examples of funds that can make up NRO deposits include rental income, dividends, pensions, and other income sourced in India and in Indian rupees.
Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into the meaning of an NRO account. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Is the Difference Between NRE and NRO?
The main difference between an NRE account and an NRO account is that NRE accounts are for income from outside of India while NRO accounts are for income from inside of India. In both instances, restrictions and regulations apply.
Who Is Eligible for NRO?
The individuals who are eligible to open an NRO account include two specific groups, which are Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). Non-resident Indians are Indian citizens living outside of India. Persons of Indian Origin are individuals who have foreign citizenship but are able to clearly prove their Indian origin by meeting certain government criteria.
What Is NRO in Banking?
NRO in banking refers to a “Non-Resident Ordinary” bank account, which is a bank account available to non-resident Indians (NRIs) in India. This account is to help them manage any income from within India. Unlike other non-resident accounts, NRO accounts are in Indian Rupees and have certain restrictions and regulations that apply.
Do You Want Help Opening Bank Accounts?
If so, you can get access to GlobalBanks IQ in just a few clicks.
GlobalBanks IQ is our flagship international account opening solution. It gives you instant access to the…
+ Expert insights on which banks to choose & why
+ Step-by-step reports to open accounts in the best banking hubs
+ GlobalBanks international bank database & detailed bank profiles
+ Tried & tested banks for high-risk, offshore, & non-resident clients
+ Plus, get YOUR most pressing bank account opening questions answered by our team!
And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open bank accounts.
Use the link in our menu above to learn more about GlobalBanks IQ. Or, contact us directly with any questions!
