Relocating overseas comes with a lot of excitement and several challenges. You look forward to living and exploring a new country and, at the same time, miss your loved ones back home. Your banking activities also witness a change. As a non-resident Indian, you need to operate finances through an NRI Account only. There are three types of accounts: Non-Resident Ordinary, Non-Resident External, and Foreign Currency Non-Resident Accounts.
Each account allows you to meet different banking requirements. Let us understand the eligibility and the need to open an NRO Account.
Who can open an NRO Account?
Those who meet the following specifications can open an NRO Account:
- Classified as an NRI by the Indian government.
- Relocated overseas for education or employment on a visa.
- Deputed by the Indian government to work at the UN or other international organisations.
- Working in the Merchant Navy, Oil rigs, or an airline overseas.
- Classified as a Person of Indian Origin and Overseas Indian Citizen, can open NRO Account online.
- Anyone who has held an Indian passport at any time.
- Parents or grandparents were Indian citizens, as per the constitutional law
- The spouse of a PIO or OIC can open the account.
Why open an NRO Account?
If you are an NRI with the following banking requirements, you should open an NRO Account without fail:
If you have income sources in India
While you relocate overseas, you may continue to hold assets and investments in India that earn you regular returns. An NRO online allows you to secure your earnings from such sources. You can also deposit your earnings in foreign currency here. The account is maintained in Indian Rupees. Any deposit made in foreign currency converts to INR.
If you wish to keep your money working
If you wish to secure and grow your savings, open an NRO Account. It offers a competitive interest rate on your deposits. This allows you to keep your money working. However, note interest earned from an NRO Account is taxable. If you wish to enjoy tax exemptions and full reparability with your funds, opting for an NRE Account is more viable.
If you have frequent Remittance requirement
NRO Accounts allow you to remit funds. For example, if your parents live in India, you could remit money to your NRO Account to support them. If you wish to invest in India or donate funds for a cause, it is possible through your NRO Account. Preferential exchange rates significantly benefit remitting funds from your NRI Account.
Leading banks allow transfers at good exchange rates. The bank may even waive off your processing fee. Your transfer request is processed within the shortest time, streamlining the entire process.
