NRO Account: A Complete Guide for NRIs

An NRO or Non-Resident Ordinary account is a common term in the financial world, particularly for Non-Resident Indians (NRIs). ‘Non-Resident’ refers to individuals who reside outside India; ‘Ordinary’ signifies the regular nature of the account.

NRO accounts  are important for NRIs looking to manage their finances in India.


What it means
An NRO account stands out for its ability to handle income earned in India (rent, dividends, pensions).

– It operates in rupees and allows the repatriation of funds up to a limit of 1 million USD per financial year.

– It is subject to a tax deduction at source (TDS) of 30% plus applicable surcharge and cess.

Opening an NRO account
To open an account, an individual must be a Non-Resident or a Person of Indian Origin (PIO) who resides outside India for employment or to carry on a business. The account would allow an NRI with property in India, earning rent, to deposit that income in an Indian bank, pay applicable taxes and repatriate the remaining funds to their country of residence.

Key features

– Competitive interest rates – The RBI determines this; it can vary based on economic conditions.

– Taxability – Income deposited is subject to Indian tax laws. This includes TDS and the applicability of Double Taxation Avoidance Agreements (DTAAs) depending on the NRI’s residence country.

– Other features – It allows joint holdings and has the provision for nomination.

Opening an NRO account

Required documents –

  • ID Proof – Passport
  • Address Proof – Utility bills, bank statements, resident permit, Government ID, driving license, Voter ID, Electoral card, employment, or university letter, credit card statement, lease agreement as proof of overseas address
  • Non-resident status proof (any one) – Visa, PIO card, Foreign Passport with PIO declaration, Continuous Discharge Certificate with Valid contract letter for seafarers, Resident Permit, Resident Card.
  • Additional documents – Passport-sized photograph, signature

Note – Documents may vary from bank to bank

Account opening process

  • Step 1 – Complete the application form
  • Step 2 – Submit the documents with the form for verification
  • Step 3 – Wait for the bank to activate the account
  • Step 4 – Account number and details will be provided

Depending on the bank, the process can take a few days or a few weeks. If the customer does not fund the account for 90 days after opening, the account shall be closed. The physical documents need to be submitted within 3 months of account opening or it will result in marking a debit freeze in the account.

IDFC FIRST Bank’s NRO Savings Account
IDFC FIRST Bank’s NRO Savings Account offers customers unique features and benefits, designed with a focus on convenience and attractive returns. The key features of the account include attractive interest rates, easy repatriation options (within a limit), dedicated relationship managers, and great customer service.

In conclusion

Those with NRO account eligibility are encouraged to consider the convenience and peace of mind it offers. These double up when you opt for an IDFC FIRST Bank NRO Savings account. Click here for more details.