Any Indian resident outside India, including NRI's; or a person of Indian origin residing outside India can open an NRO account. The account and be funded by remittance from outside India, or by traveler's cheques/currency notes while on visit to India or through Indian rupee funds
NRO account can be opened as savings/current/fixed deposit account
Accounts are denominated in Indian Rupees
Investments are non-repatriable however remittance up to USD 1 million per financial year calendar year is permitted provide certain applicable conditions are fulfilled
Joint accounts are permitted with Resident/Non-Resident Indians
Fixed Deposits can be maintained for terms varying from 15 days to 10 years
Interest on Savings Account accrued on monthly minimum balance basis and credited to the account half-yearly
Interest is repatriable subject to payment of tax
Statement issued on monthly basis or as per customer's request or register for E-Statement services.
Nomination facility available
Operation by residents under power of attorney available for local payments and permitted investments. However, power of attorney holder cannot open or close NRO accounts nor make gifts or facilitate loans
Rupee loans in India can be granted to account holder and 3rd party against security of these deposits.
Transfer is permissible in account holder's other NRO accounts
Interest is taxable in India at applicable rates
Gifts made to close resident relatives are exempt from income tax liability applicable in case of the recipient done