Non Resident Ordinary Account (NRO A/c) :

In Brief:

• NRIs can opt for this account if they earn an income and incur expenses in India

• Dividend, house rent income, etc., can be credited to this account

• They can choose between opening savings, current or fixed deposit accounts

• Tax is payable on the interest they earn on their bank balance subject to DTAA

• Normally the balance in this a/c is not freely repatriable

• However, RBI has now allows up to one Million Dollar repatriation from this account in a financial year for specific purposes, after payment of applicable taxes

• The account can be opened jointly with another NRI or an Indian resident. Operation in the account is also allowed through a resident Power of Attorney Holder [for restricted use]

• The rupee interest rate varies depending on the tenor of the deposit

• One can open and credit NRO account with Indian funds or with foreign exchange funds

• Period of Investment is from a Minimum 15 days to Maximum of 10 years