NRIs can have the following bank accounts :
- Non Resident Ordinary rupee account (NRO account )
- Non Resident (external) rupee account (NRE account)
- Foreign Currency nonresident (FCNR account)
Given below is comparison between NRO, NRE and FCNR accounts:
| Accounts and features | NRO | NRE | FCNR(B) |
| Purpose of Account | To park Indian earnings like rent, Indian salary, dividend etc | To park overseas savings remitted to India after converting to INR | To park overseas savings without converting into INR |
| Currency in which account is denominated | Indian Rupees | Indian Rupees | Any freely convertible currency |
| Account Types | Savings Bank Account
Fixed Deposit Current Account |
Savings Bank Account
Fixed Deposit Current Account |
Fixed Deposit |
| Joint account holder | Can be held jointly with a resident or a non resident | Account can be opened with a resident close relative on a “Former or survivor” basis. The resident close relative will be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder. | Account can be opened with a resident close relative on a “Former or survivor” basis. The resident close relative will be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder. |
| Allowed credits | Transfers from rupee accounts of non resident banks, remittances received in permitted currency from outside India through normal banking channels, permitted currency tendered by account holder during his temporary visit to India, legitimate dues in India of the account holder like current income, rent, dividend, pension, interest, etc., sale proceeds of assets including immovable property acquired out of rupee/foreign currency funds or by way of legacy/ inheritance. | ||
| Taxability of interest earned on the account balance | Taxable. Also subject to TDS deduction @30%. | Exempt from income tax and wealth tax | Exempt from income tax and wealth tax |
| Repatriation of Principal | Yes repatriation is allowed up to USD 1 million per year subject to payment of taxes. Any further repatriation requires RBI approval. |
Freely repatriable | Freely repatriable |
| Repatriation of Interest | Freely repatriable | Freely repatriable | Freely repatriable |
| Rate of Interest | Banks are free to determine their interest rates. However, the rate cannot exceed the rate offered by them on comparable domestic rupee account | Banks are free to determine their interest rates. However, the rate cannot exceed the rate offered by them on comparable domestic rupee account | Determined by RBI. |
