NRI bank account FAQs: all your account queries answered
This NRI bank account FAQs will help you choose an account type that is right for you.
Account Type |
NRO |
NRE |
FCNR Deposit |
RFC |
| What are the accounts called | Non Resident Ordinary (NRO)Account | Non Resident External (NRE) Account | Foreign Currency Non Resident Deposit (FCNR) Account | Resident Foreign Currency (RFC)Account |
| What are the different account types available | Savings (easy access) and Fixed Deposit (for fixed term) | Savings (easy access) and Fixed Deposit (for fixed term) | Fixed Deposit (for fixed term) | Savings (easy access) and Fixed Deposit (for fixed term) |
| Who should use this account type | If you are an NRI but still have some kind of income back in India (such as from rent, dividend, Indian salary etc.), you can use an NRO account. This account can also be used to manage the money you earned in India before you became an NRI | This account is useful to save and manage money earned outside India, but transferred to India | An FCNR account is for those who want to save money in India but want to hold it in a foreign currency for convenience or to avoid currency fluctuation. A selection of six foreign currencies are available. As savings are held in a foreign currency, FX conversion risk is eliminated while transferring and repatriating. | If you are an NRI looking to migrate back to India but want to hold savings earned aboard, in a foreign currency, then an RFC account type will allow you to maintain savings in a foreign currency while you are a resident Indian |
| What currency the account can be held in | INR | INR | In six foreign currencies(US Dollars, Pound Sterling, Euro, Japanese Yen, Australian Dollars, Canadian Dollars) | Four currencies such as USD, GBP, JPY, EURO |
| What are the tax implications of this account type | In an NRO account, interest earned is taxed in India | In an NRE account, both the principal amount and the interest are tax-free in India | In this account type, both principal and interest are tax free in India | This account does not attract any tax on interest earned only if the person declares that they are "Resident But Not Ordinarily Resident" in India |
| Can the money in this account type be repatriated | Only interest earned can be repatriated | It is possible to repatriate the entire savings (principal and interest) held in this account | Full savings (principal and interest) can be repatriated at any time | Savings can be repatriated only for bonafide purposes (e.g.: education, medical reasons etc.) |
For more information see here [RBI website section, opens in a new window]
