What is Non-Resident Ordinary : NRO Account ?
A NRO (Non-Resident Ordinary) account is a rupee denominated account. Foreign currency which you wish to deposit is converted to Indian rupees at the time of money is deposited into the account. NRO account is for NRIs who are having income (like rent, dividend, pension) in India and to make local payments in Indian Rupees for their genuine needs in India.
Key Features of NRO ( Non-Resident Ordinary) accounts
- Funds in a NRE account will be maintained in Indian Rupees
- Source of funds into NRO accounts can only contain funds received from within India
- NRIs can open this account jointly with an Indian resident or with another NRI
- Funds can be transferred from an NRO account to an NRO / Resident account
- Funds cannot be transferred from an NRO account to an NRE account
- Interest in NRO account are taxable
- Repatriability is subject to conditions (That is, converting funds to any foreign currency)
- Power of attorney holder can operate the account ( that is, Power of attorney can make local, rupee payments on behalf of the NRI )
- NRO account is converted into a regular resident account if NRI returns to India permanently