The United States houses the second largest population of NRIs after the UAE. We often receive a lot of queries from USA-based NRIs regarding investments and account opening in India. Among many questions that arise, one such question is “Can I open NRO account from USA? In this blog, we will answer this question and delve into the details of opening an NRO account from the USA, discussing the requirements, process, and benefits.
Can I open NRO account from USA?
Indians living in the USA may have financial commitments, expenses, and investments in India. Hence, you can effortlessly handle these matters by opening an NRO (Non-Resident Ordinary) savings account from the USA. With an NRO account, NRIs living in the USA can efficiently manage their Indian finances from there itself.
NRO Account Opening from USA
While NRIs can apply for an NRO account online on any bank’s website, given below is the list of banks that assist US-based NRIs with NRO account opening. As these banks are located in the United States, NRIs can also visit the nearest branch or representative office for any banking or investment needs. Here are top banks that offer NRO accounts for Indians in the USA.
| Name of the Bank | Interest Rates (p.a.) | Minimum Balance Requirements |
|---|---|---|
| State Bank of India | -For balance less than Rs. 10 cr: 2.70%-For balance Rs. 10 cr & above: 3.00% | – Rs. 1 lakh (Metro/Urban areas)– Rs. 50,000 (Semi-Urban/Rural areas) |
| Bank of Baroda | 2.75% | Quarterly average balance Rs. 50,000 |
| ICICI Bank | -For balance below Rs. 50 lakh: 3% -For balance above Rs. 50 lakh: 3.50% (above 50 Lakhs) | Rs. 10,000 |
| Bank of India | -For balance up to Rs. 1 lakh: 2.75%-For balance above Rs. 1 lakh: 2.90% |
How can NRIs Open NRO Account from USA?
NRIs can open NRO accounts from the USA in both online and offline modes. The process of opening an NRO account may slightly vary among different banks. However, regardless of the chosen bank, the following general steps are typically involved:
Online
- Visit the official website of your preferred bank.
- Locate the ‘NRI Banking’ section and select the ‘Open NRI account’ option.
- Access the NRI account opening form provided on the website.
- Choose the account type as ‘NRO account’.
- Fill out the form by providing all the necessary information, including personal details, employment details, overseas-related information, etc.
- Upload the supporting documents as specified by the bank.
- Once your application is approved, the bank will request an initial payment to activate the account and complete the account opening process.
Offline
- Locate the nearest branch or representative office of the chosen bank in the USA.
- You can schedule an appointment beforehand to ensure a smooth process.
- Request for an NRI account opening form.
- Fill in your personal details and gather the necessary documents.
- Submit the completed account opening form along with the required documents. The bank representative will guide you through the process and assist with any queries you may have.
- After verifying your application and documents, the bank will proceed with activating your NRO account.
Open NRO Account Online from USA through SBNRI
SBNRI app provides a unique online solution for NRIs looking to open an NRI account in the simplest and most efficient way possible. To initiate the NRO account opening process online, NRIs have two options: either click on the ‘Apply for NRO Account’ button within this blog or follow the steps outlined below:
- Download the SBNRI app from either the Google Play Store or App Store.
- Sign in to the app using your credentials.
- Select the ‘Open NRI Account’ button within the app interface.
- Use the in-app scanning feature to conveniently scan and upload your KYC (Know Your Customer) documents.
- Click on the ‘Apply’ button to submit your application.
Documents Required for NRO Account Opening from USA
The document required for NRIs in the USA may vary depending on the bank or financial institution. However, the following are the general documents typically needed to apply for an NRO account online:
- Copy of Indian PAN Card or Form 60
- Copy of valid Indian Passport
- NRI status proof, such as a copy of employment/visa documentation or work/residence permit
- Address proof for both US and Indian residences as per Customer Identification Policy.
- Recent passport-size photograph.
Additionally, for Seafarers, the following additional documents may be required:
- FEMA declaration
- Current work contract
- Copy of Continuous Discharge Certificate (CDC)
- Last page of the disembarkation stamp
Document Requirements for POI/OCIs in the USA
- Copy of valid Indian Passport
- Copy of a valid PIO/OCI card or any other proof of PIO as per Customer Identification Policy
- Address proof for both US and Indian residences
- Duly filled and signed PIO declaration
- Recent passport-size photograph
Eligibility Criteria
The following categories of individuals are eligible to open an NRO Account from the USA:
- Non-Resident Indians (NRIs)
- Individuals currently residing in the USA on business, work, or student visas
- Indian nationals posted in the US by the United Nations (UN), or employed by the Government of India or other Public Sector Undertakings (PSUs)
- Indians employed in the merchant navy, overseas airlines, or on oil rigs
- Individuals classified as Persons of Indian Origin (PIO) or Overseas Citizens of India (OCI)
- Individuals who have held an Indian passport at any point
- Individuals whose spouse, parents, or grandparents are/were citizens of India
Features of NRO Account
Given below are the features of an NRO account in a tabular format:
| Particulars | Details |
|---|---|
| Definition | For income earned from India (pension, rent etc.) |
| Currency | INR |
| Interest | Up to 7.30% p.a. |
| Tax on interest earned | Interest income is taxable |
| Repatriation of funds | Up to a maximum of 1 million USD per financial year |
| Joint Operations | Allowed |
| Nomination Facility | Allowed |
Benefits of NRO Account Opening
Listed below are the top NRO account benefits:
Simplified Management
An NRO account enables NRIs to easily handle and maintain income generated in India, such as pension or rental income, with convenience and efficiency.
Investment Opportunities
With an NRO account, NRIs can invest in non-repatriable opportunities like Mutual Funds, IPOs, and other investment instruments, allowing participation in the Indian market and potential growth.
Attractive Interest Rates
Funds held in NRO accounts can earn competitive interest rates for wealth generation.
Tax on Interest Income
The tax on an NRO rupee account is 30% (plus applicable surcharge and education cess) and is deducted at the source. However, NRIs can avail the benefits of DTAA to enjoy better yields.
Repatriation Flexibility
NRIs can repatriate up to USD 1 million per financial year, after fulfilling tax obligations.
Trading Access
By linking an NRO account to a PIS (Portfolio Investment Scheme) account, NRIs can engage in trading Indian stocks listed on recognized stock exchanges.
Easy Account Opening
Opening an NRO account is a hassle-free process that can be completed with just a few clicks, offering convenience and accessibility.
Low Minimum Balance
Most banks typically require a low minimum balance for NRO accounts, providing flexibility and convenience in managing the account.
Joint Account Facilities
NRIs can open an NRO account jointly with NRI/ PIO and also with a resident Indian on Former or Survivor basis.
Comprehensive Banking Services
NRO accounts provide a wide range of banking services, including deposits, cash withdrawals, fund transfers, checkbook facilities, and internet banking, allowing NRIs to access and manage their accounts from anywhere in the world.
Can NRIs Continue with Resident Savings Account?
The simple answer to this question is NO. When an individual acquires an NRI status, he/she cannot continue with a resident savings account. According to the RBI guidelines, NRIs must convert their resident savings account to an NRO (Non-Resident Ordinary) account. They can also open a specific NRI bank account to conduct financial transactions in India. Failure to comply with this regulation may result in penalties.
Contact SBNRI
Due to lots of information and documentation required to apply for NRO accounts, NRO account opening process is lengthy and cumbersome elsewhere. You can download SBNRI App to apply for an NRO account with nominal documentation in just 10 minutes.You can also click on the button below to apply for an NRO account. Visit our blog and YouTube Channel for more details.
