Master Circular on Non-Resident Ordinary Rupee (NRO) Account
This circular outlines the guidelines for Non-Resident Ordinary Rupee (NRO) accounts, which are rupee-denominated accounts held by Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
Eligibility: NRIs and PIOs are eligible to open NRO accounts.
Types of Accounts: NRO accounts can be opened in the form of savings, current, or term deposits.
Joint Accounts: Joint accounts can be opened with residents or non-residents, but the account holder must be an NRI or PIO.
Permissible Credits/Debits: Credits can be made through inward remittances, interest on the account, and transfer from other NRO accounts. Debits can be made for local payments, remittances outside India, and transfers to other NRO accounts.
Remittance of Assets: NRIs and PIOs can remit assets outside India, subject to certain conditions.
Foreign Nationals: Foreign nationals of non-Indian origin visiting India can open NRO accounts, but with certain restrictions.
Loans/Overdrafts: Authorised banks can grant loans/overdrafts to account holders and third parties, subject to certain conditions.
Change of Residential Status: The account holder’s residential status change from resident to non-resident or vice versa affects the account operation.
Treatment of Loans/Overdrafts: Loans/overdrafts are treated differently in the event of a change in the borrower’s residential status.
Payment to Non-Resident Nominee: Payment of funds to a non-resident nominee is allowed, subject to certain conditions.
Operation by Power of Attorney Holder: NRO accounts can be operated by a Power of Attorney holder, subject to certain conditions.
International Credit Cards: International credit cards can be issued to NRO account holders, subject to certain conditions.
Income-Tax: NRO accounts are subject to income-tax provisions.
Quarterly Reporting: Authorised banks must report the opening of NRO accounts by individuals of Bangladeshi origin on a quarterly basis.
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Download: Master Circular on Non-Resident Ordinary Rupee (NRO) Account