A comprehensive guide for NRO deposits in Indian banks

financialexpress.com:

Navigating the intricacies of financial instruments is essential for anyone seeking to manage their funds effectively. One such instrument that expatriates and non-resident Indians (NRIs) often encounter is the Non-Resident Ordinary (NRO) deposit in Indian banks.

NRO deposits are specialized accounts designed for NRIs to manage their income earned in India, such as rent, dividends, or pension. These deposits are maintained in Indian Rupees and offer a way for NRIs to have a secure and accessible avenue for managing their finances in the country.

Let us understand everything about NRO deposits to clear doubts and manage one’s investment more effectively.

Any NRI, regardless of their residence status, can open an NRO account. Even those who have returned to India permanently or have intentions to do so in the future are eligible. It serves as a versatile financial tool for NRIs.

Also Read: Exchange Traded Fund: How are ETFs taxed in India?

NRO deposits come in various types, including savings accounts, fixed deposits, and recurring deposits. Each type caters to different financial needs, providing flexibility and options for NRIs to choose based on their preferences and objectives.

The interest rates on NRO deposits are determined by the respective banks and are subject to change. These rates may vary based on the deposit tenure and the bank’s policies. NRIs should stay informed about the prevailing interest rates to make informed decisions regarding their investments.

One crucial aspect of NRO deposits is the tax implications. The interest earned on NRO deposits is subject to taxation. The applicable tax rate is based on the individual’s income slab. NRIs should be aware of these tax implications and factor them into