NRIs and PIO can maintain NRO account for bonafide local banking transactions denominated in Rupees, not involving any violation of the provisions of FEMA and rules and regulations made thereunder. (Note: Opening of accounts by individuals/entities of Bangladesh / Pakistan nationality / ownership requires prior approval of Reserve Bank of India).

When a resident Indian becomes non resident, the existing account in India will be designated as NRO account.

The accounts can be in the form of savings, current or term deposits.

Joint account with other NRI(s) /PIO or close resident relative is permitted.

The accounts may be held jointly with residents on 'former of survivor' basis. NRIs and PIOs may hold an NRO account jointly with other NRIs and PIOs.

Remittances from abroad and legitimate dues in India of the account holder can be credited to the account.

Interest income is subject to income tax.

The following debits are permitted in the account

• All local payments in rupees including payments for investments in India subject to compliance with the relevant regulations made by the Reserve Bank.
• Remittance outside India of current income like rent, dividend, pension, interest, etc. in India of the account holder.
• Remittance up to USD One million, per financial year (April-March), for all bonafide purposes,to the satisfaction of the bank.

NRI Account Application Form (Click here)