This document provides information about different bank accounts available to Non-Resident Indians (NRIs), including Non-Resident Ordinary (NRO) accounts and Non-Resident External (NRE) accounts. It discusses the key differences between these two account types, such as NRE accounts allowing funds to be freely repatriated outside India while only interest earned on NRO accounts can be repatriated. The document also provides details on eligibility requirements, interest rates, tax treatment, and features of NRO and NRE accounts offered by several Indian banks.

1. NON RESIDENT ORDINARY ACCOUNTS(NRO)
NON-RESIDENT(EXTERNAL) RUPEE
ACCOUNTS(NRE)

2. NRI BANKING
*To meet the specific needs of non-resident
Indians related to their remittances, savings, earnings,
investments and repatriation, the Government of India
introduced in 1970 Non-Resident (External) Account Rules
which are governed by the Exchange Control Regulations.
*The Foreign Exchange Management Act, 1999 determines
the laws regulating foreign exchange and enlists the various
deposit schemes available to Non-Resident Indians.

3. MEANING OF NRI ACCOUNTS
*NRI accounts are maintained by banks which hold authorized
dealers' licenses from the Reserve Bank of India.
*All NRIs can open such accounts, with the exception of
individuals residing in Pakistan and Bangladesh, who require
special permission from the RBI. Joint accounts of two or more
non-residents and nomination facility are permitted.
*Banks are offering lucrative interest rates to bols-
ter NRI funds.

4. MEANING OF NON RESIDENT INDIAN
(NRI)
UNDER I.T ACT
 An Indian Citizen who stays abroad for employment/carrying on business
outside India or stays abroad under circumstances indicating an intention for an
uncertain duration of stay abroad is a non-resident.
 EXAMPLE: Persons posted in U.N. Organizations and Officials deputed abroad by
Central/State Governments and Public Sector undertakings on temporary
assignments are also treated as non-residents.
 An individual (whether Indian citizens or not) who is outside India and who
comes on a visit to India in any previous year will be treated as "non-resident" in
India if he stays in India in that previous year less than 182 days subject to the
condition that during the preceding four previous years his stay in India does
not amount to 365 days or more.

6. MEANING
NON RESIDENT
ORDINARY ACCOUNTS
(NRO)
 Non-resident ordinary accounts can
be opened either by money received
from abroad in foreign exchange or
out of rupees earned in India. When
an Indian resident goes abroad for job
/ employment his local account will
automatically be designated into a
non resident ordinary account by
bank.
 For this the bank should be informed
of his / her departure outside India
for job. This account can be
maintained jointly with residents.
Funds held in the account can
NON-RESIDENT
(EXTERNAL) RUPEE
ACCOUNTS (NRE)
 These are again rupee accounts. The NRE
account can be opened only with money
received from abroad and not from local
rupee sources. There can be joint holder to
the account but not with residents. The joint
account holder should also be a non
resident.
 The funds held in the account can be freely
repatriated outside India without limit and
without any approval from RBI. Since the
account is maintained in rupee, for
repatriation purpose the Rupee will be
converted into the desired foreign currency

7. FEATURES OF:-
Basis NRE Account NRO Account
1}Who can open
this account
Any NRI can open NRE a/c with funds
remitted to India through a bank
abroad.(individuals / entities of
Bangladesh / Pakistan nationality /
ownership require prior approval of
RBI)
Any person resident outside India (other
than a person resident in Nepal and
Bhutan). (individuals / entities of
Bangladesh / Pakistan nationality /
ownership as well as erstwhile OCBs
require prior approval of RBI).
2}Joint Holding NRE account can be jointly held with
another NRI but not with resident
Indian.
NRO account can be held with NRI as well
as resident Indian (close relative) as defined
under Section 6 of the Companies Act 1956.
3}Currency In
Which Account Is
Denominated
Indian Rupees Indian Rupees
4}Nomination Permitted Permitted

8. FEATURES CONTI…
Basis NRE Account NRO Account
5}Repartiability NRE account is freely repatriable (Principal and
interest earned)
Principal of NRO deposits are non-repatriable,
current income like interest earnings are
repatriable. While NRI/POI may remit an
amount, not exceeding US$1million per F.Y.,
for permissible transactions from these
accounts.
6}Type of account Savings, Current, Recurring, Fixed Deposit Savings, Current, Recurring, Fixed Deposit
7}Tax Treatment NRE account is Tax free (no Income tax, wealth
tax and gift tax) in India.
On the other hand the interest earned in NRO
account and credit balances are subject to
respective income tax bracket and are also
subject to applicable wealth and gift tax.

9. PRIMARY REASONS FOR CHOOSING THESE
ACCOUNTS
Choose NRE account if
you:
 want to park your overseas
earnings remitted to India
converted to Indian Rupees;
 want to maintain savings in
Rupee but keep them liquid;
want to make a joint account
with another NRI;
 want Rupee savings to be
freely repatriable
Choose NRO account if
you:
 want to park India based
earnings in Rupees in India;
 want account to deposit
income earned in India such
as rent, dividends etc;
 want to open account with
resident Indian (close relative).

10. COMPARISION:
NRE AND NRO SAVINGS
ACCOUNTS

11. PROVIDER
AXIS
BANK
STANDARD
CHARTERED
BANK OF
INDIA
BHARAT
COOPERATIVE
BANK
1}Account Type 1}NRE savings A/C
2}NRO Savings A/C
1}NRE savings A/C
2}NRO Savings A/C
1}NRE savings A/C
2}NRO Savings A/C
1}NRE savings A/C
2}NRO Savings A/C
2}Interest Rate 4% 4% 4% 4%
3}Average
Balance
Amount
INR 10,000 INR 25,000 INR 5,000 INR 5,000
4}Average
Balance Period
Quarterly Quarterly Half Yearly Half Yearly
5}Application
By
Post &
Branch
Post &
Branch
Post &
Branch
Branch
6}Joint Account
1}Allowed with other NRI or Residents Indians.
2}Allowed with other NRI/NRI’S & local residents also.

12. PROVIDER AXIS
BANK
STANDARD
CHARTERED
BANK OF
INDIA
BHARAT
COOPERATIVE
BANK
6}Taxes 1}Interest earned and balance in NRE exempted from income/wealth tax.
2}Income/wealth taxes is levied @30%+surcharge and concession,if any is subject
to double tax avoidance agreement with certain countries.
7}Repatriability 1}Principal+Interest Repatriable.
2}Repatriable upto USD 1 Million per calander year.
9}Denominated
Currency Indian Rupee(INR)
10}Type of
Accounts
1)Savings A/C
2)Current A/C
3)Savings A/C for
returning
POI/NRI/OCI
1}NRE/NRO savings
2}NRE/NRO current
3}NRE term deposits
4}NRE employee
banking A/C
5}NRI 3-in1 A/C
1}Savings A/C
2}Current A/C
3}Term Deposit
1}Savings
2}Current
3}Fixed Deposit
4}Monthly/Quarter
ly income
5}Double benefit
deposit
6}Recurring
Deposit

13. THANKYOU….!!!
-Shiwani singh