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: NRO accounts can be opened by NRIs and PIOs, and can be held jointly with residents or non-residents.
Types of Accounts: There are two types of NRO accounts: savings and current accounts.
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 transfer to other NRO accounts.
Remittance of Assets: NRIs/PIOs can remit assets acquired in India out of Rupee funds, subject to certain restrictions. Foreign nationals of non-Indian origin can remit assets acquired in India out of foreign exchange.
Loans/Overdrafts: Authorised banks can grant loans/overdrafts to account holders and third parties, subject to certain conditions.
Change of Resident Status: In the event of a change in the resident status of the account holder, the account should be redesignated as a resident account or closed, and any loans/overdrafts should be repaid or rearranged.
Treatment of Loans/Overdrafts: In the event of a change in the resident status of the borrower, loans/overdrafts should be repaid or rearranged.
Payment of Funds: Funds can be paid to non-resident or resident nominees in the event of the death of the account holder.
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Download: Master Circular on Non-Resident Ordinary Rupee (NRO) Account