Master Circular on Non-Resident Ordinary Rupee (NRO) Account
This circular outlines the guidelines for Non-Resident Ordinary Rupee (NRO) accounts, which can be 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 fixed deposits.
Joint Accounts: Joint accounts can be held with residents or non-residents, but the account holder must be an NRI or PIO.
Permissible Credits: Credits can be made from legitimate sources, such as remittances from abroad, interest on NRO accounts, and proceeds from the sale of assets.
Permissible Debits: Debits can be made for local disbursements, remittances abroad, and investments in India.
Remittance of Assets: NRIs and PIOs can remit assets acquired in India, subject to certain restrictions.
Loans and Overdrafts: Authorised banks can grant loans and 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’s operation.
Payment to Non-Resident Nominee: Payment of funds to a non-resident nominee is permitted, subject to certain conditions.
Facilities for Students: Special facilities are available for individuals going abroad for studies.
International Credit: International credit cards can be issued to NRO account holders, subject to certain conditions.
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Download: Master Circular on Non-Resident Ordinary Rupee (NRO) Account