Difference between NRE and NRO Savings Account


                                  NRE Savings Account          NRO Savings Account
Who can open an account NRIs (individuals / entities of Bangladesh / Pakistan nationality / ownership require prior approval of RBI) Any person resident outside India (other than a person resident in Nepal and Bhutan). Individuals / entities of Pakistan nationality / ownership, entities of Bangladesh1 ownership and erstwhile Overseas Corporate Bodies2 require prior approval of the Reserve Bank.
Who can be a joint holder Account can be held jointly by
a Non-Resident Indian (persons of Indian nationality or origin) / by a Resident Indian (Former or Survivor basis). A Resident Indian can operate the account only as a Mandate / POA holder.

Account can be held jointly by a Non-Resident Indian (Persons of Indian nationality or origin) / by a Resident Indian (Former or Survivor basis).               

Nomination Permitted Permitted
Mandate Holder An Indian resident can be authorised to operate the
account and provided with a Debit Card* for the account
An Indian resident can be authorised to operate the account and provided with a Debit Card for the account
Currency in which account is denominated Indian Rupees (INR) Indian Rupees (INR)
Repatriation Principal and interest are fully repatriable RBI allows repatriation only for
i) current income
ii) up to USD 1 (one) million per financial year (April - March), for any bonafide purpose after payment of applicable taxes.
Type of Account Savings, Current, Recurring, Fixed Deposit Savings, Current, Recurring, Fixed Deposit
Period of Fixed Deposits Minimum tenure of 1 year to
5 years
As applicable to resident accounts.
Taxation Interest earned is exempted
from Tax in India
Interest is taxable under Indian Income Tax Act. However, NRIs can take the benefit of DTAA guidelines by submitting the requisite documents
Purpose To deposit overseas savings remitted to India To deposit Indian earnings like rent, Indian salary, dividend or any other current income

1In terms of A.P.(DIR Series) Circular No. 82 dated February 11, 2013 Authorised banks are permitted to open NRO account of individual/s of Bangladesh nationality without the approval of the Reserve Bank subject to conditions.

2Overseas Corporate Body (OCB) means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least sixty per cent by Non-Resident Indians and includes overseas trust in which not less than sixty percent beneficial interest is held by Non-Resident Indians directly or indirectly but irrevocably, which was in existence as on September 16, 2003 and was eligible to undertake transactions pursuant to the general permission granted under Foreign Exchange Management Regulations.

*Only domestic card will be issued to the mandate holder.

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