Types of Accounts

Non-Resident Ordinary (NRO) Accounts

An existing rupee account, opened prior to one's departure from India will be designated as NRO A/C, or one can also open NRO A/C by fresh remittance from abroad or by transfer of funds from own NRE/FCNR (B) Accounts.
All legitimate dues arising in India can be credited to this account. Proceeds of remittances received from abroad in any permitted currency can be credited to this account.
Debits for all local payments in rupees are freely permitted.
Interest earn on NRO balances is subject to deduction of Income Tax at source.
Remittance upto USD 10,00.000.00 (USD One Million) per Financial Year permitted out of balances held in NRO accounts, subject to deduction of Income Tax and other RBI guidelines.

Non-Resident External (NRE) Rupee Account :

Account is opened with initial deposit of remittance from place of stay abroad.
NRE accounts can be opened in any of the bank's deposits schemes.
Funds are fully repatriable
No Income Tax is applicable on interest earned.
Balance is exempt from Wealth Tax.
Debits for local payments are freely permissible.
Gifts, out of balance in NRE accounts, to close relatives in India are free of gift tax.

Foreign Currency(Non-Resident) Accounts( Banks) Schemes(FCNR-B).

Account is opened with initial deposit by remittance from place of stay abroad.
Funds earn competitve interest rates
Funds are fully repartiable, whenever desired.
No Income Tax is payable on interest earned by individuals
Accounts can be opened under term deposits scheme only.
Accounts can be opened in six currencies viz.Stg. Pounds, US dollars,Euro, Japanese, Yen,Australian Dollars and in Canadian Dollars.
Exchange risk on funds kept under the scheme is borne by the bank.
Interest on deposits is payable in currencies in which the account is maintained.
Inter Changeability of funds between NRE& FCNR(B) accounts is permitted.
Gifts to close relatives in India out of balance in FCNR(B) accounts are free from gift tax.

Bank Accounts for Non Resident Indians Returning to India.
Resident Foreign Currency (RFC) Accounts Scheme.

Scheme is available for NRIs returning to India, who have been resident outside India for a continuous period of not less than one year and who became resident in India on or after 18-4-1992.
Accounts can be opened with remittance from outside India out of the NRI's eligible assets aboard or transfer of funds from his NRE/FCNR(B) accounts without penal provisions of premature withdrawal.
Accounts can be opened in any foreign currency and in any scheme i.e Saving/current/Time Deposits.
Exchange risk is borne by the Bank.
The Deposit earns higher interest than what is earned abroad.
Funds are repatriable outside India for bonafide needs of the depositors and their close relatives.

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