NRIs (Non-Resident Indians) often find it difficult to manage their income through investments in India. To facilitate managing their income earned in India, NRO savings accounts were designed. Income of NRIs such as rent, dividends, or pension received in Indian currency can be deposited to NRO savings accounts. NRO accounts offer seamless transactions making it an essential tool for NRIs to manage their finances in India.
What is an NRO Account?
An NRO Account is crucial for NRIs to manage income earned in India, including dividends, pensions, and rent. It accepts both Indian and foreign currency but allows withdrawals in Indian rupees. Jointly held with Indian residents or fellow NRIs, it enables easy fund transfers from NRE accounts. However, TDS on NRO savings account is applicable for the interest earned. In essence, it aids NRIs in Indian income management.
You should also be aware of how to change savings account to NRO account when there is a change in status. You will have to inform your bank about your change in status and request for the change by filling out a conversion form and submitting the required documents like passport, visa, etc.
Benefits & Features of NRO Savings Account
The following are the features and benefits of NRO Savings account you can consider while opening an NRO account
- Can deposit Indian income sources, like rent, Mutual Fund dividends, and FD interest, into the NRO Account.
- Accepts deposits in INR and foreign currencies, automatically converting foreign currency at prevailing rates.
- No restrictions on the repatriation of interest income from NRO Account deposits. You also have the option to transfer the principal amount within specified limits. According to regulations, you can transfer up to USD 1 million in a single financial year after paying the required taxes.
- TDS on NRO Savings Account at 30% is applicable for the interest earned.
- Open NRO Savings jointly with a resident Indian family member (either or survivor basis).
- Ideal for managing foreign earnings and Indian income sources.
- Easy access for Indian expenses during visits.
- Joint Account facility for dependents in India to manage local financial obligations.
- Remit balances up to USD 1 million (or equivalent) per financial year, along with other eligible assets.
Best NRO Savings Account Interest Rate in 2023
The best NRO Savings Account Interest Rate is given below:
Name of the Bank | Interest Rate p.a. Slab rate depending on the balances |
Axis Bank | 3% to 3.50% |
Bank of Baroda | 2.75% to 3.30% |
DBS Bank | 3.25% to 3.5% |
HDFC Bank | 3% to 3.50% |
Kotak Mahindra Bank | 3.50% |
SBI | 2.70% to 3% |
ICICI Bank | 3% to 3.50% |
PNB | 2.70% to 2.75% |
Yes Bank | 4% to 6.25% |
DCB Bank | 1.75% to 8% |
Why Choose an NRO Savings Account in 2023?
It is important to choose an NRO Savings Account as opening an NRO account offers the following benefits:
- You can deposit your savings and income from Indian sources, including rent, pension, and interest.
- Repatriation of your Indian earnings (up to 1 million USD per financial year) to your home country is permitted after remitting the applicable taxes.
- You have the option to authorize a resident Indian family member for easy access to funds for your family members in India.
How to Apply for an NRO Savings Account Online?
The procedure for opening NRO Savings Account online is:
- Access the website of the bank where you are going to open the account.
- Choose NRO Savings Account under the ‘NRI Banking’ option
- Continue to access the account opening form.
- Fill in the details accurately and upload soft copies of the required documents.
- Click on the submit button.
- Upon approval of the application, the details of the bank account will be sent to you via email.
How to Apply for an NRO Savings Account Offline?
To open an NRO Savings Account offline, you will have to follow the steps given below.
- Visit the nearest branch of the bank where you intend to open the account.
- Collect the NRO Savings Account application form.
- Submit the duly completed and signed form at the designated counter along with copies of the prescribed documents.
- The bank will verify the documents and the details in the application.
- If the request is approved, the account will be opened and the account number provided to you.
NRO Savings Account Service Charges in 2023
The details of the NRO Savings Account Charges applicable at top banks are given below.
Name of the Bank | Service Charges |
HDFC Bank | AMBUrban/Metro branches: Rs. 10000 or an FD or Rs. 1.00 lakh for 1 year 1 daySemi-Urban branches: Rs. 5000/- or FD of Rs. 50000 for 1 day 1 yearRural branches: Rs. 2500/- or Rs. 25000 FD for 1 year 1 day Non-maintenance of minimum balance: 6% of the shortfall or Rs. 600 whichever is lowerCheque book charges: 25 cheque leaves free per yearCheque Return charges: Rs. 450 for 1st cheque, Rs. 550 for 2nd cheque and Rs. 550 for 3rd cheque onwards |
Kotak Mahindra Bank | AMB: Rs. 10000 to Rs. 1.00 lac depending on the type of accountNon-maintenance of AMB: 6% of the shortfallCheque book charges: Rs.1.50 per leafDebit Card Annual Charges: Rs.259 to Rs. 750 depending on the card categoryPhysical Account Statement: Rs. 100 to Rs. 500 depending on the periodicity |
SBI | AMB:Metro/Urban branches: Rs. 3000Semi-Urban: Rs. 2000Rural: Rs. 1000Non-Maintenance of AMB:Metro/Urban: Rs. 10 to Rs. 15 depending on the percentage of shortfallSemi-urban: Rs. 7.50 to Rs. 12 depending on the percentage of shortfallRural: Rs. 5 to Rs. 10 depending on the percentage of shortfallCheque Book charges: 25 leaves free in a year. Thereafter Rs. 30 for 10 leaves Rs. 75 for 25 leaves and Rs. 150 for 50 leavesCheque Return charges: Rs. 500 per instanceDuplicate Statement: Rs. 100 per page with 40 entries |
Axis Bank | AMB: Rs. 10000 or Rs. 1 lac FDCharges for Non-maintenance of AMB: Rs. 10/- per 100 shortfall. Minimum: Rs. 100 Maximum: Rs. 500Cheque Book charges: Unlimited freeCheque Return Charges: Outward cheque: Rs. 200 per instanceInward cheque: Rs. 500 per instanceDuplicate Statement charges: Rs. 100 per instance |
DBS Bank | AMB: Rs. 50000Cheque return charges: Rs. 350 per instanceDuplicate Statement: FreeDebit Card: FreeAMB Non-maintenance charges: Rs. 1500 charged quarterly |
Documents Required to Apply for an NRO Savings Account
The documents required to open an NRO Savings Account are:
Identity proof:
Copy of Valid Indian/Foreign passport
Proof of NRI/PIO Status
Photocopy of valid VISA for Indian Passport Holder
Photocopy of valid OCI (Overseas Citizen of India) card or PIO (Person of Indian Origin) card
Address Proof (anyone )
Valid Passport
Aadhar Card
Driving Licence
Voter ID Card
Job Card issued by NREGA
OCI/PIO Card, Work Permit, Social Security Card, Green Card, etc.
Difference Between NRO Savings Account & NRE Savings Account
The key differences between NRO Savings and NRE Savings Accounts are:
NRO Savings Account | NRE Savings Account |
For parking income earned in investments made in India | For depositing income earned abroad |
Account maintained in Indian Rupees | Account maintained in Indian Rupees |
Cash deposit permitted | Remittance only by way of foreign inward remittance or by way of interest earned on NRE FD |
Interest earned is fully repatriable. | Balance in the account is fully repatriable |
TDS is applicable at 30% of interest earned | Tax exemption on interest earned |
Joint Account with Indian Residents permitted | Joint account only with another NRI |
NRO Account FAQ’s:-
Income out of investments in India like rent, dividends, interest on FD, and pension can be credited to an NRO savings account.
Yes. Cash deposit is permitted to NRO accounts
Yes. When the resident status changes you can convert the existing savings account to NRO account by submitting a conversion form.
Interest earned on the NRO savings accounts can be repatriated fully.
Yes. TDS at 30% is applied to NRO savings account interest.