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 remittance 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 channel.
- 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 notes / travelers cheques offered by NRIs / OCIs, while travelling India.
- Interest, dividend and maturity proceeds of investments made in India etc. on non-repatriable basis.
- Any income generated in India for which the taxes are not deducted at source.
Charges of opening NRO Account
There are no charges of opening an NRE/NRO Account in India. Although you need to maintain an average monthly or quarterly balance of Rs.10,000/-. If you fail to maintain the average monthly or quarterly balance, you will have to pay a penalty which is different for different banks.
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.
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