What types of bank accounts are available for NRIs to open?

What types of bank accounts are available for NRIs to open?

Under the Foreign Exchange Management Act (FEMA), NRIs are not allowed to maintain regular resident savings accounts in India. Instead, they must open designated NRI accounts — NRE (Non-Resident External) or NRO (Non-Resident Ordinary) — based on the nature of income and repatriation needs.

Available NRI bank account types

1. NRO (Non-Resident Ordinary) account

  • Purpose: For managing income earned within India (e.g., rent, dividends, pensions)
  • Deposit sources:
    • Indian earnings
    • Inward remittances
    • Transfers from other NRO accounts
  • Repatriation: Restricted; up to USD 1 million per financial year with documentation
  • Taxation: Interest earned is taxable in India
  • Joint holding: Allowed with another NRI or resident relative (with repatriation restrictions)

2. NRE (Non-Resident External) account

  • Purpose: For holding foreign earnings in INR
  • Deposit sources:
    • Inward remittances from overseas
    • Transfers from other NRE accounts
  • Repatriation: Freely repatriable (principal + interest)
  • Taxation: Interest income is tax-exempt in India
  • Joint holding: Only with another NRI

What if...

ScenarioWhat you should know
You are still using your Indian savings accountIt must be closed and converted into an NRO/NRE account upon change of residency
You want to trade or invest in IndiaYou must use an NRO account for FYERS equity and IPO investments
You want full repatriabilityChoose an NRE account to freely move funds to your resident country
Before opening a Demat or trading account with FYERS, make sure your bank account matches your NRI status. Using an incorrect account type may result in compliance issues or transaction reversals.
Last updated: 23 Jun 2025

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