NON-RESIDENT ORDINARY ACCOUNT
- You can open Rupee Checking Accounts, namely Rupee Savings Account or Rupee Current Account and Rupee Fixed Deposit Accounts. This account will be maintained in Indian Rupees.
- Non-Resident Indians and Persons of Indian Origin can open this type of account.
- When you become non-resident, the Rupee accounts held by you prior to your becoming non-resident get designated as Non-Resident Ordinary accounts. These accounts are for Non-Resident Indians who need an account to credit local dues like rent from property etc.
Types of Accounts
All types of accounts can be opened under the scheme such as Current, Savings, Recurring and Term Deposit.
Joint accounts can be opened by two or more NRIs and /or PIOs or by an NRI/PIO with a resident relative(s) on ‘former or Survivor’ basis. However ,during the life time of the NRI/PIO account holder, the resident relative can operate the account only as a Power of Attorney holder.
The account can be opened by the following funds:
- Remittance from abroad,
- Proceeds of Foreign Currency/notes/travellers cheques during the temporary visit of the account holder,
- Proceeds of Drafts/personal cheques,
- Transfer from existing FCNR/NRE accounts of same person and
- oFunds from local sources representing bonafide transactions in Rupees.
The funds held in these accounts are non-repatriable except in the following cases:
- Upto US$30,000/-per academic year to meet expenses in connection with education of their children
- Upto US$1,00,000 to meet the medical expenses abroad of the account holder or his family members,
- Upto US$1,00,000 per year representing sale proceeds of immovable properties held by them for a period of not less than 10 years,
- Current income such as rent, dividend, pension, interest etc., net of applicable taxes.
Proceeds of remittances received from outside India through normal banking channel or foreign currency notes tendered by the account holder during his temporary visit to India or transfers or legitimate dues in India of the account holder.
- All local payments in Rupees including payments for investments, subject to compliance with RBI regulations
- Remittance outside India of current income in India net of applicable taxes.
Interest Rates on these accounts are the same as domestic rates.
Interest earned on these deposits shall be subject to at source deduction of Income tax at prevailing rates.