What is an NRO Account?

What is an NRO Account?

Open an NRO Savings Account

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Key Takeaways: NRIs who earn income in India need an NRO account to manage the funds. Read on to know more about what an NRO account entails.

Many NRIs have property and investments in India that provide them with income in the form of rent, dividend, interest payouts, etc. To deposit and manage their India income, NRIs must open an NRO (Non-Resident Ordinary) account.

Let’s get to know a bit more about the features of an NRO account.


Repatriation: An NRO account allows you to repatriate your interest income and the principal amount subject to certain conditions. The Government of India has capped this amount at USD 1 million for a financial year after paying taxes.

Taxation: Any interest amount earned on the principal in an NRO account is subject to 30% taxation, deductible at source.

Ownership: An NRO account provides you with the option of a joint holding with a resident Indian on a ‘former’ or ‘survivor’ basis. Besides this, you can also open one with another NRI.

Withdrawal: An NRO account provides you with the flexibility to receive funds in either Indian or foreign currency. However, the withdrawal can only be in INR. You can also transfer money from your NRE account to your NRO account effortlessly.

Open an NRO Savings Account


The following categories of individuals are eligible to open an NRO Savings account –

  • NRIs/ PIOs/ OCIs
  • Spouses of Indian citizens or PIOs
  • Indian passport holders at any point of time[1] or if a person’s parents or grandparents were Indian citizens at the time of the Constitution of India or the Indian Citizen Act 1955
  • Indian nationals employed in the merchant navy, oil rigs or airlines overseas
  • Indian citizens on student or business visas or deputation abroad by the Government of India or a Public Sector Undertaking or any other employment visa

How to open an NRO account?

You have two options to open an NRO account. They are as follows -

  • You can convert an existing resident account into an NRO account. However, your bank may levy some charges for this.
  • Or, you can open a new NRO account

To open an NRO account, you must submit documentary proof of your non-resident status.

Required documents

  • Filled in application form
  • A copy of your Indian passport. In case you do not have an Indian passport, please share your OCI card or PIO proof
  • Visa or residence permit

Final Note: If you wish to open an account for your overseas income, you can opt for an NRE account too which is exempt from taxes. To open an NRO account, get in touch with DBS Treasures and our Relationship Managers will guide you through the steps.

References: 1

Open an NRO Savings Account

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