NRO FDR

Particulars

Non Resident Ordinary Account (NRO)

Currency

Indian Rupees

Type of Accounts

Term Deposit

Te`nure (For Term Deposits)

Minimum 15 days to maximum 10 years

Sources of Funding the Account

1.    Funds remitted from abroad in any permitted currency through banking channels.

2.    Depositing cheque / draft drawn in foreign currency or INR, drawn on Vostro A/cs maintained by foreign bank and exchange houses with us.

3.    Transfer from other NRE / FCNR / NRO accounts of the same account holder or another account holder with our Bank or other Banks accompanied by a certificate from paying bank.

4.    Surrender of foreign currency / foreign currency travellers’ cheques to the Bank by the account holder in person.

Note : Third party TCs are not permitted.

Rate of Interest

Banks are free to determine interest rates for term deposits.   (As in case of domestic deposits)

Who can open

NRIs / PIOs (other than person resident in Nepal and Bhutan)
(Such individuals from Bangladesh and Pakistan require prior approval of RBI)

Joint Account with

One or more NRIs / PIOs
May be held jointly with residents as well.

Nomination

Permitted

Tax on Interest Income

TDS on interest earned on NRO deposits is at 30.90%.   If interest amount paid exceeds Rs.10 lacs, TDS will be @33.99%.

Lower TDS rate for  accounts of NRIs from countries having Double Taxation Avoidance Agreement (DTAA) with India

Operations by Power of Attorney in favour of a resident

Operations in the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments and for investment in the name of account holder.  Remittance to the account holder abroad is permitted, if the PA document provides for the same. 

Repatriation

Interest is repatriable net of applicable tax.   Principal amount is repatriable under certain circumstances.