Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
12,086.70114.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

How to open an NRO account

Proof of residence abroad can be in the form of employment detail, student status, or a copy of the resident permit in the overseas destination. This proof needs to be attested by the Indian embassy, branch of an Indian bank with an overseas branch.

ET CONTRIBUTORS|
Nov 04, 2019, 06.30 AM IST
0Comments
Getty Images
19 2
NRO account can be opened jointly with a resident or non-resident.
A non-resident Indian can access earnings in India through a nonresident ordinary (NRO) account. Earnings in India could be in the form of rent, dividends, interest, pension, among other sources. An NRO account can be opened in the form of a savings, current or fixed deposit account. Repatriation of funds from NRO accounts is permitted by RBI, subject to certain limits. Procedure for opening an NRO account is as follows.

Options

The non-resident Indian can convert his/her existing resident account in India to NRO account or open a new NRO account. Documentary proof that the account holder is a non-resident as defi ned in Indian tax laws is a prerequisite for NRI accounts.

Documents
In case of conversion of resident account, a form needs to be filled and signed by all account holders. Documents such as proof of identity, NRI status proof, proof of foreign address and two photographs need to be submitted. In case of a new account, the NRI will have to fill up a new account opening form with similar KYC documents.

Proof of residence abroad can be in the form of employment detail, student status, dependent visa status, or a copy of resident permit in the overseas destination. This proof needs to be attested by the Indian embassy, notary or branch of an Indian bank with an overseas branch

Transaction proof
Banks also seek proof of financial transactions abroad, be it in the form of cheque drawn on an overseas account or credit card statement that is not over six months old.

NRO account opening
In case of conversion, once documents are received and verifi ed, existing savings account will be redesignated as NRO account. For new accounts, once all the documents are received along with initial amount, the account is opened.

Points to note
  • NRO account can be opened jointly with a resident or non-resident.
  • If the signature on the form varies from the one in the passport, it has to be attested by the manager.
  • Some charges may be levied by the bank for conversion of existing account to NRO.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

Also Read

Will I get my mutual fund redemption proceeds in my NRO account?

Will my redemption amount come directly to my NRO account?

How to convert resident savings account to NRO account

How to remit NRO account funds abroad

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service