Looking to open an NRO account in India? Here are a few simple guidelines to accomplish the same effortlessly.
If you are moving overseas for business, you may need to open a bank account for routing income earned in India. A Non-Resident Ordinary (NRO) account is an excellent way to do it. Maintained only in Indian currency, it’s perfect to park funds sourced through different local mediums such as rental property, dividends, interest, pension, or other payments, etc.
You can opt for saving, current, recurring, or fixed deposit NRO account. Not to mention, NRO accounts can be held jointly with another NRI or an Indian resident. What’s more, repatriation of USD1 million per financial year is permitted by RBI through these accounts. However, it must be noted that NRO accounts are subject to taxation in India.
Tips for Opening an NRO Account
The process to open NRO account in India is extremely easy. All you need to do is follow the below mentioned simple steps.
Conversion of Existing Resident Account to NRO Account:
A Non-Resident Indian (NRI) can convert his existing resident account in India to an NRO account. For this, the account holder needs to fill and submit a form to the bank with documentary evidence about his/her identity, NRI status (as defined by Indian tax laws) proof of address in the foreign country, along with photographs.
How to Open a New NRO Account?
- For opening a new NRO account, you can either visit your nearest bank branch in person or do it remotely by downloading the application form via the bank’s official web portal.
- Next, fill the form and furnish all the important KYC documents. These include a photocopy of valid passport with pages reflecting your name, address, date of birth, date, and place of issuance, expiry date, photograph, address, signature, and more.
- Provide proof of NRI status in the form of work permit, student status, visa copy, or permanent residency card in a foreign destination.
- Furnish evidence of financial transactions abroad by way of a credit card statement or cheque drawn in favour of an overseas account. Make sure these are not more than six months old.
- Proof of overseas and Indian address that matches the address mentioned in the application form.
- Two recent passport size coloured photographs.
- Copy of Indian PAN Card or Form 60
- Your first remittance by Cheque / Draft for the amount required to maintain the average monthly balance in the account.
- Get all the documents and photocopies attested by the Indian embassy, notary, or an overseas banker.
- Once this is accomplished, sign the form and send it to the bank along with the documents for the NRO account openingprocess. It’s important to ensure your signature matches up with the one on your passport.
- After the form is received with the initial payment amount and the documents verified by the bank, the NRO account is opened.
As you can see, opening an NRO account is a straightforward and hassle-free procedure. So, what are you waiting for? Go ahead and inform the local bank of your changed resident status to either convert your existing account to an NRO account or start a new one.
