NRO Account


NRO Account Meaning:
In India banking terminology, the term Non-Residential Ordinary or NRO Account refers to funds deposited with an Indian financial institution opened by an Indian national with the intention of becoming a Non-Resident Indian or NRI. An NRO account is kept in Indian rupees and cannot be converted and repatriated into foreign currency.

NRO Account Example:
For example, a NRO Account is generally opened in India as a normal bank account by an Indian national before leaving the country to work abroad. A Non-Resident Ordinary or NRO Account allows Indian nationals working abroad to receive funds in Indian rupees or in foreign currency. The funds can be sent to the account from the country where the person is currently in residence, but only Indian rupees can be withdrawn. Funds received and repatriated in an NRO Account must be reported to the Reserve Bank of India. Upon the Indian national account holder’s return to India, the account is re-designated as a resident account.