Eligibility For NRO Account Opening

Permissible Credits

• Transfer from another Resident Indian / NRE / FCNR (B) account
• Transfer from another NRO account but only for payment of legitimate dues in India
• Fresh remittance from abroad through banking channel
• Personal cheques drawn on foreign account
• Proceeds of Foreign Currency Notes / Travelers cheques tendered by NRI / PIO / OCI, while visiting India. Amounts in excess of USD 5000 (or equivalent) in currency or USD 10,000/- (or equivalent) in Travelers cheques should be accompanied by a Currency Declaration Form
• Interest, dividend and maturity proceeds of investments made in India etc on non-repatriable basis

Types Of NRO Accounts & Deposits

Savings Bank (SB) / Current Account -

• Rupee denominated account
• Account can be opened with a zero balance
• It is preferable to fund the account upfront to avoid payment of charges for non-maintenance of Minimum Average Balance.
• Interest is paid quarterly on the daily balance in Savings Bank account. No interest is paid in Current Account.
• Minimum Deposit:
  • In General Branches: As per MAB (Minimum Average Balance) criteria
  • In Personal Banking Branches: Minimum total customer account/deposit balance should be Rs. 1 lakh for Metro / Urban areas and Rs. 50,000 for Semi-Urban / Rural areas
• Balances in the account are partly repatriable subject to overall ceiling of USD 1 million or equivalent in a financial year
• Nomination facility available

Term Deposits (TDR) -

• Rupee deposits of fixed tenure
• Interest is paid quarterly on Term Deposit Receipts (TDRs). It can be credited to the NRO Savings Bank account as per request of the customer.
• Minimum Deposit:
  • In General Branches: Rs. 1000/-
  • In Personal Banking Branches: Minimum total customer account/deposit balance should be Rs. 1 lakh for Metro / Urban areas and Rs. 50,000 for Semi-Urban / Rural areas
• Principal & interest amount are partly repatriable, subject to overall ceiling of USD 1 million or equivalent in a financial year
• Nomination facility available
• You can avail a loan/overdraft against your deposit
• Premature withdrawal permissible
• Automatic renewal on maturity for the same period but at the then prevailing rate of interest, if there are no instructions for renewal

Special Term Deposits (STDR) -

• Rupee deposits of fixed tenure
• Interest gets compounded every quarter. It is paid on maturity with the Principal.
• Minimum Deposit:
  • In General Branches: Rs. 1000/-
  • In Personal Banking Branches: Minimum total customer account/deposit balance should be Rs. 1 lakh for Metro / Urban areas and Rs. 50,000 for Semi-Urban / Rural areas
• Principal & interest amount are partly repatriable, subject to overall ceiling of USD 1 million or equivalent in a financial year
• Nomination facility available
• You can avail a loan/overdraft against your deposit
• Premature withdrawal permissible
• Automatic renewal on maturity for the same period but at the then prevailing rate of interest, if there are no instructions for renewal

Recurring Deposits (RD) -

Want to create a fund for your children's education or marriage or to buy a house or for a dream holiday? Whatever may be your financial goals, through our Recurring Deposit Scheme, you can save a little every month so that at the time of need you have sufficient funds to achieve your financial goals. So, set aside a small amount every month and earn at compounded rates of interest.

• Minimum monthly installment of Rs.100/-
• Nomination facility available
• You can avail a loan/overdraft against your deposit
• Premature withdrawal permissible
• No automatic renewal will happen, if there are no instructions for renewal

Premature Withdrawals

• Tenors : Premature withdrawal
• Below Rs.1 Crore
  • No interest is payable if the deposit is withdrawn before 7 days
  • Effective 01st April 2017, Penalty for Premature Withdrawal for Retail Term Deposits will be applicable as under:
    • Description Up to Rs.5.00 lacs / Penalty (All Tenors) - 0.50%
    • Description Above Rs.5.00 lacs but below Rs.1 Crore / Penalty (All Tenors) - 1%
  • The interest shall be 0.50% or 1% below the rate applicable at the time of Deposits for the period Deposit has remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower.
• Rs.1 Crore & Above
  • No interest is payable if the deposit is withdrawn before 7 days.
  • On pre-mature withdrawal of the deposit (after completion of 7 days), interest will be paid at applicable rate for the period the deposit has actually remained with the Bank or contracted rate less Premature Penalty of 1%, whichever is lower.

Tax Implications

Income Tax as per following will be deducted at source on interest earned in the NRO accounts:

• If interest income is less than or equal to Rs. 1 crore: 30.90%
• If interest income is more than Rs. 1 crore: 34.608%

TDS on NRO deposits will be deducted on maturity or accrual basis annually, whichever occurs first.

In case, depositor is resident of any of those countries with whom India has a DTAA, the tax will be deducted as per DTAA (Double Taxation Avoidance Agreement) agreed between India and the respective country. Please click here for list of DTAA countries and corresponding TDS rates. DTAA benefit can be availed by submitting following three documents:

• Tax Residency Certificate issued by the revenue authorities of your home country
• Self-declaration (please click here to download the standard format)
• Form No. 10F (please click here to download the standard format)

Loans Against NRO Deposits

You can avail a loan in Indian rupees against the security of NRO TDR / STDR / RD deposits. The loan may be used to meet emergency financial requirements, to carry on business activities, for direct investment in India or for acquiring a flat / house in India.

You need not close the deposit prematurely, and can avail the loan at the branch where you maintain the deposit, as an overdraft or as a demand loan. Maximum loan of 90% of the face value of deposit including the interest accrued. The applicable interest rate on loan against Deposits is @ 1.00% over the rate paid on the relative deposit offered as security. For more information, please click here.

Funds Transfer From NRO Account To Overseas Account

From NRO account to overseas account -

Repatriation up to USD 1 million or equivalent net of applicable taxes in a financial year is permitted, for bonafide purposes, subject to submission of necessary documents as applicable. You can post / courier or submit in a person a request letter for transfer of funds from NRO account to overseas account. click here here to download the standard request letter.

From NRO account to NRE / FCNR (B) account -

Transfer of funds from NRO to NRE account is permitted within the overall ceiling of USD 1 million or equivalent per financial year, subject to submission of necessary documents as applicable. You can post / courier or submit in a person a request letter for transfer of funds from NRO to NRE / FCNR (B) account. Please click here to download the standard request letter.

Procedure To Open An NROAccount

Joint Account Of Non-residents With Residents

NRI/PIO/OCI customers are permitted to open and maintain their NRO accounts with their resident relative(s) (as mentioned below) as a joint holder on “Former or Survivor” basis (NRI/PIO/OCI being the former);

• they are members of a Hindu Undivided Family;
• they are husband and wife; or
• one person is related to the other in such manner as may be prescribed;
  • Father (Provided that the term “Father” includes step-father)
  • Mother (Provided that the term “Mother” includes step-mother)
  • Son (Provided that the term “Son” includes step-son)
  • Son’s wife
  • Daughter
  • Daughter’s husband
  • Brother (Provided that the term “Brother” includes step-brother)
  • Sister (Provided that the term “Sister” includes step-sister)