Opening an NRO Account in India

gets classified as Non-Resident Indian (NRI). All NRIs can open an NRO account. Be it a student studying abroad, a professional working in foreign countries or an Indian citizen who has moved abroad permanently. People of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) can also open these accounts.

How to Open an NRO Account?

An NRO account can be opened both in offline and online modes. For offline mode, one needs to visit a bank branch in India or an overseas branch of the Indian bank if available in the respective country. An NRO account can also be opened online, where an online form is to be filled then documents are to be scanned and uploaded. Your identity is verified by the bank through a video call. This is the most convenient option for NRIs who cannot visit India frequently.

Documents Required

Right and compliant documents are a critical part of NRO account opening. You will need a valid passport as proof of your identity and NRI status. A (Permanent Account Number) PAN card, which is for tax identity in India, is mandatory for opening the account. You must provide proof of your overseas address, such as a bank statement, utility bill or residence permit from your country of residence. Additionally, you need proof of your Indian address. This can be your old address proof, such as an Aadhaar card, driving license or utility bill. Recent passport-sized photographs are also required. Some banks may ask for your visa copy or employment letter to verify your NRI status.

Steps to Open an NRO Account

Choose your bank

Select a bank that offers good NRI services and has branches convenient for your family in India. All major banks, like Indian banks, both public sector and private sector banks, offer all NRO account facilities with online banking options.

Complete the application form

You can download the NRO account opening form from the bank's website or visit a branch in India. Fill all details carefully, including your personal information, overseas address and Indian address. All details mentioned in the application form should match with relevant documents.

Attach documents

Attach all required documents with your application form. Documents must be attested. If you are applying from abroad, you can get your documents attested at the Indian embassy or consulate in your country of residence.

Initial deposit

If you can fund your NRO account by transferring money from your existing Indian bank accounts, through remittances or even a cheque in your name issued by another entity.

Receive account details

Once your application is processed and your account gets opened, the bank will provide the account number, debit card, internet banking credentials and chequebook.

Account Conversion

You can convert your Indian bank account into an NRO account. If you already have a resident Indian bank account and now your status is that of an NRI, the resident account can be converted to NRO. You can enquire at your bank to know about the exact process and documents required for conversion.

Important Features of NRO Account

NRO account can be held jointly with another NRI or even with a resident Indian, which is useful for family members managing finances together. You can transfer only up to one million US dollars per financial year from your NRO account to your foreign bank account. The interest earned on NRO deposits is taxable in India, and banks deduct tax at source before crediting interest.