Master Circular on Non-Resident Ordinary Rupee (NRO) Account
The Master 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: NRO accounts can be opened by NRIs and PIOs, as defined in the circular.
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, subject to certain conditions.
Permissible Credits/Debits: Credits to NRO accounts can be made from inward remittances, legitimate dues in India, and transfers from other NRO accounts. Debits can be made for local disbursements, remittances outside India, and transfers to other NRO accounts.
Remittance of Assets: Foreign nationals of non-Indian origin can remit assets acquired in India out of Rupee funds. NRIs/PIOs can remit assets acquired in India out of foreign exchange brought into India.
Loans/Overdrafts: Authorised banks can grant loans/overdrafts to account holders and third parties, subject to certain conditions.
Change of Residential Status: The circular outlines the procedures to be followed when the account holder’s residential status changes from resident to non-resident or vice versa.
Treatment of Loans/Overdrafts: The circular specifies the treatment of loans/overdrafts in the event of a change in the account holder’s residential status.
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Download: Master Circular on Non-Resident Ordinary Rupee (NRO) Account