What Is A NRO Account? Eligibility, Features, And Usage Explained

There could be various reasons why you are staying and working overseas. But there should not be a reason that can stand in your way of tackling all the financial needs back home in India. It is where the NRI accounts come in. The best thing about these accounts is that you can open one from anywhere, whether you are taking a trip back to the country or you are still living overseas.

While a demat account for NRI is a popular choice for many, there is a certain kind of account known as NRO, which can be the best bet for you. For this kind of account, the interest is generally fully repatriable. However, the principal and repatriable amount is subject to specific limitations. In this blog, we will take a look at what a NRO account is and its features and eligibility.

What is an NRO account?

The full form of the NRO account is a Non-Resident Ordinary Account. It is basically a kind of NRI account that is Indian rupee-denominated. Within this kind of bank account, you may manage the income they earn in India. An NRI may go ahead and deposit the rest, dividend, interest, and other income that they earn in the nation into this bank account.

Understanding the basics of an NRO account is just as important as the IRS’s meaning. This account is the best thing to have by your side for money transfers outside India.

An NRO account may be a savings, recurring, or fixed deposit account. An NRI may easily open an account jointly with someone who can either be a resident or a non-resident in India. With an NRO account, an NRI can also invest.

Eligibilities of opening an NRO account

Whether you are an NRI who is still living overseas or you have planned a trip back to the country, it is a must that you vividly remember your swift code along with your need for an NRO account. Here are the eligibilities you need to be mindful of:

• Seafarers who are working on International Vessels
• PIO (Person of Indian Origin)
• Employees who are working in an oil rig on international offshore projects
• OCI (Overseas Citizen India)
• Indians who are non-resident

Features of an NRO account

Here are some of the greatest features of an NRO account:

• The interest in an NRO Rupee account is generally taxable at 30% and is certainly deductible at the source.
• Indeed, the account may be operated by anyone in the world using Internet banking facilities.
• The account holders of NRI may freely repatriate or transfer the principal and the interest amount.
• The NRIs may go with the loans against the deposits of NRO.
• The nomination facility is available for ordinary non-resident accounts.
• Funds may not be transferred to an NRE account from an NRO account.

Purpose of an NRO account

An abundance of benefits come with an NRO account. Here are the common purposes of an NRO account:

• Local dues payment
• Tax management
• Management of Indian income
• Regulatory Compliance
• Ease of access and safety
• Operational flexibility

Wrapping Up

It pretty much goes without saying that there are a lot of benefits that come with an NRO account. Whether you are on a trip back to the country or you are still overseas tackling your job, an NRO account will certainly help you get a hold of your finances.