NRO

What are the Permissible credits in an NRO account?

An NRO account is a rupee-denominated bank account opened by Non-Resident Indians to save and manage their earnings in India, such as rental income, dividends, pension, etc. Many Indian banks allow NRIs to open an NRO account, including SBI, HDFC Bank, ICICI Bank, Axis Bank, etc. Permissible credits in an NRO account include remittances from abroad, proceeds of investments made in India, etc.

Permissible Credits in NRO Account

Credits refer to the money that can be deposited in an account. The permissible credits in an NRO Account are listed below.

Fresh inward Remittances from outside India through banking channels. Interest earned on the NRO account balance.

Gifts in INR or loans taken from any resident or NRE/NRO account holder.

Transfers from your own or any other NRE/FCNR (B) account.

Transfer from another NRO account only for payment of legitimate dues in India.

Personal cheques drawn on a foreign account.

Proceeds of foreign currency note/travelers cheques offered by NRIs / OCIs, while traveling India.

Interest, dividend and maturity proceeds of investments made in India, etc. on a non-repatriable basis.

Any income generated in India for which the taxes are not deducted at source.

Can two NRIs open a joint NRO Account

Yes. NRIs can open a joint account with other NRIs for an NRO Account.

Can NRI open a joint NRO account with a resident

Yes. An NRI can open a joint account with a resident but only on “former or survivor” basis and that too only for a NRO Account. The term “former or survivor” basis refers to the condition where only one of the two joint account holders, “Former” can operate the account. The “Survivor” can only operate the account after the “Former” expires.