How to open an NRO account: eligibility, documents and steps
NRIs open an NRO (Non-Resident Ordinary) account to receive India-source income — rent, dividends, pension and matured investments. Unlike NRE, NRO interest is subject to TDS at 30%. Repatriation is permitted up to USD 1 million per financial year on submission of Form 15CA/15CB. Most banks offer online opening.
NRO receives India income; NRE receives overseas income
An NRO account is the correct account for India-source income such as rent, dividends, pension and matured FDs. Interest is taxed at 30% TDS. You can repatriate up to USD 1 million per financial year from NRO after paying applicable taxes and submitting Form 15CA/15CB.
Key points
- India income goes here — Rent, dividends, pension, matured resident FDs and sale proceeds from Indian assets should be credited to the NRO account.
- TDS at 30% — NRO interest is subject to TDS at ~31.2% (including cess). File ITR to reclaim excess TDS if total India income is below the slab.
- Repatriation limited — Up to USD 1 million per financial year can be repatriated from NRO — requires Form 15CA/15CB and CA certificate for larger amounts.
Step-by-step: how to open an NRO account
Step 1: Confirm NRI eligibility under FEMA — same as NRE account.
Step 2: Choose a bank — HDFC, ICICI, Axis and SBI all offer online NRO account opening.
Step 3: Gather documents — passport, overseas visa or residence proof, overseas address proof, Indian PAN.
Step 4: Apply online via video KYC or courier attested documents to the bank's NRI centre.
Step 5: Instruct existing tenants, companies or pension payers to credit income directly to the NRO account.
NRE vs NRO: which do you need?
NRE: overseas-earned funds, fully repatriable, tax-free interest in India. Use for savings and investments you want to bring back abroad.
NRO: India-source income, repatriation limited to USD 1 million/year, TDS at 30%. Use for Indian rental income, dividends, pension and asset sale proceeds.
Most NRIs need both — NRE for overseas savings and NRO for India-source income.
Frequently asked questions
Can a resident Indian account be converted to an NRO account?
Yes. Existing resident savings accounts must be re-designated as NRO when the account holder becomes an NRI. Do this as soon as you become NRI to avoid FEMA violations.
Is NRO interest taxable in my country of residence?
Yes in most cases. NRO interest is exempt from additional Indian tax above TDS but is typically taxable in your country of residence. Claim a Foreign Tax Credit for TDS paid in India.
What is Form 15CA and 15CB?
Form 15CA is a self-declaration for remittances outside India. Form 15CB is a CA certificate required for taxable remittances above specified thresholds. Both are submitted on the Income Tax portal before the bank processes the remittance.