Non-Resident Indians (NRIs) often come across the need of opening a Non-Resident Ordinary (NRO) account in India to manage their income earned in India. In this blog, we will provide you with a step-by-step guide on how to open an NRO account online, ensuring convenience and ease for NRIs.
How to Open NRO Account Online?
The procedure to open an NRO account varies from one bank to another. However, the following are the generic steps that need to be followed regardless of the bank NRIs choose to open their NRO account with-
- Go to the desired bank’s website.
- Locate the ‘NRI Banking’ section and select the ‘Open NRI account’ option.
- Click on the NRI account opening form.
- Choose the appropriate account type based on your financial needs. In this case, you need to choose the NRO account type.
- Complete the form by providing the necessary information, including personal details, employment details, and overseas-related information.
- Upload the required supporting documents.
- After the approval, the bank will request an initial payment to activate the account.
Open NRO Account Online with SBNRI
SBNRI app is one of its kind that allows NRIs to apply for an NRI account online in the simplest and shortest way. You can either click on the ‘Apply for NRO Account’ button in this blog or follow the steps given below for an NRO account opening online:
- Download the SBNRI app from the Google Play Store or App Store.
- Sign in using your credentials.
- Click the ‘Open NRI account’ button.
- Scan and upload KYC documents using the in-app scanning feature.
- Click on ‘Apply’ and you are done.
Documents required to Open NRO Account Online
The documents required for opening an NRO account may differ from bank to bank. However, given below are the basic documents that an applicant needs to have in order to apply for an NRO account online:
- Photocopy of valid passport showing critical information (Like name, date of birth, address, and issuance and expiry dates, as well as visa stamp)
- Copy of PAN/ Form 60 (in absence of PAN)
- Proof of NRI Status:
- For NRIs: It could be a copy of a valid visa or work/ resident permit/ student visa
- For OCIs/ PIOs: OCI/ PIO card.
- Any address proof. Make sure that the address on the document must be the same as the address mentioned in the application form.
- Passport size coloured photograph.
- An initial payment cheque/ draft from your own account.
The above mentioned documents must be attested by any of the following:
- Authorized officials of overseas branches of Scheduled Commercial Banks registered in India
- Branches of overseas banks
- Notary Public
- Court Magistrate
- Judge
- Indian Embassy/Consulate General in the country where the non-resident customer resides
What is an NRO Account?
An NRO (Non-Resident Ordinary) account is a type of bank account in India designed for NRIs. It allows NRIs to manage their income earned in India, such as rent, dividends, pension, or other investments.
Who can Open NRO Account?
As per the FEMA rules and regulations, NRIs, PIOs and foreign nationals are eligible to apply for an NRO account in India.
Best NRO Account in India
To find out the best NRO account in India for NRIs, refer to the table given below. It shows the top banks for opening an NRO account in India, along with their interest rates and minimum balance requirements:
| Name of the Bank | Interest Rates | Minimum Balance Required |
|---|---|---|
| State Bank of India | – Balance less than Rs. 10 cr: 2.70% p.a.- Balances Rs. 10 Crore & Above: 3.00% p.a. | – Metro/Urban Areas: Rs. 1 Lakh- Rural/Semi-urban Areas: Rs. 50,000 |
| HDFC Bank | – Balance of Rs. 50 Lakh and above: 3.50%- Balance below Rs. 50 Lakh: 3.00% | – Metro/Urban Areas: Rs. 10,000 – Semi-urban/ Rural branches: Rs. 5,000 |
| Kotak Mahindra Bank | 3.5% p.a. | – NRO Rupee Savings Account: Rs. 10,000 (AQB)- NRO Platina Savings Account: Rs. 1,00,000 (AMB) |
| Bank of Baroda | 2.75%- 3.35% p.a. | Rs. 1,000 |
| South Indian Bank | 2.50%- 6.00% p.a. | -SB NRO Silver: Rs. 5,000-SB NRO Gold: Rs. 10,000-SB NRO Platinum: Rs. 1 Lakh |
| ICICI Bank | – Balance below Rs. 50 Lakh: 3.00% p.a.- Balance equal to or above Rs. 50 Lakh: 3.50% p.a. | – Rs. 10,000 at account level- Rs. 25,000 at customer ID level |
| Yes Bank | 4%- 6.5% p.a. | Rs. 10,000 |
Features of NRO Account
Here are the key features of an NRO account:
- NRO accounts are maintained in Indian Rupees (INR), and all transactions are conducted in INR.
- NRO accounts can be opened by NRIs, PIOs (Persons of Indian Origin), and foreign nationals. Even Indian residents who become non-residents can convert their existing resident accounts into NRO accounts.
- NRIs can repatriate both the interest and principal amount.
- Account holders can transfer a maximum of USD 1 million in principal amount per financial year after paying the applicable taxes.
- The interest earned on an NRO rupee account is taxable at a rate of 30% (plus applicable surcharge and education cess) and is deducted at the source. However, NRIs can enjoy higher yield by availing DTAA facility.
- The NRO account can be jointly opened with NRI/ PIO and also with a resident Indian on Former or Survivor basis.
- Non-Resident Ordinary accounts also offer nomination facilities.
- The account can be accessed and operated from anywhere in the world through internet banking facilities.
Benefits of NRO Account in India
Listed below are the top NRO account benefits:
- With an NRO account, NRIs can easily manage and maintain income generated in India from sources like pension, rental income, etc. with convenience.
- With an NRO Account, you can invest in opportunities such as Mutual Funds, IPOs, etc. on a non-repatriable basis. This allows you to participate in the Indian investment landscape and potentially benefit from market growth.
- Funds held in NRO accounts can earn attractive interest rates, including on Fixed Deposits. The interest earned can help grow the funds within the account and enhance overall returns.
- NRIs can repatriate up to USD 1 million per financial year, after paying applicable taxes.
- By linking an NRO Account to a PIS Account, NRIs can engage in trading Indian stocks listed on recognized stock exchanges.
- Opening an NRO Account is easy and can be done with just a few clicks.
- Most banks typically require a low minimum balance, providing flexibility and convenience in managing your account.
- NRO accounts also offer nomination and joint account facilities.
- NRO accounts provide a range of banking services, including deposits, withdrawals, fund transfers, checkbooks, and internet banking facilities. NRIs can easily access and manage their accounts from anywhere in the world.
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.
FAQs
NRE accounts are used to hold and manage foreign income earned outside of India, and the funds in these accounts are freely repatriable. On the other hand, NRO accounts are used to hold income earned in India, such as rental income, dividends, or pension, and the funds in these accounts have limited repatriability, subject to certain conditions and regulatory restrictions.
The tax treatment for NRE and NRO accounts differs, with NRE accounts being tax-free and NRO accounts being subject to tax in India.
According to the FEMA rules and regulations, the penalty for not converting a resident account to an NRO account is up to 3 times the amount in the account or INR 2 lakh when the sum is not quantifiable.
