What is a NRO account?
A NRO bank account is an ordinary saving bank account opened for Non resident Indians. This is why it is known as Non-Resident Ordinary account. Since it is an ordinary account i.e. as good as a normal saving bank account, funds lying in NRO account cannot be taken outside the country or in other words, the funds lying in NRO account are not repatriable.
It is an account, wherein any monies lying in it cannot be taken outside the country or cannot be repatriated. This money cannot be converted into any foreign currency at the behest of the account holder and cannot be remitted outside the country. In other words the monies lying in this account can be utilized or remitted within India only. Q5. Can NRIs invest in shares in India? Yes, NRIs are permitted to make direct investments in shares in India. This facility is granted both on repatriation and non-repatriation basis to NRIs. Q6. How can NRIs invest in shares in India? As per RBI guidelines, to be able invest in Shares an NRI will be required to open a PIS (Portfolio Investment Scheme) account with a designated bank in India. Q7. What is a PIS Account (Portfolio Investment Scheme)? Portfolio Investment Scheme (PIS) is a scheme of the Reserve Bank of India (RBI) defined in Schedule 3 of FEMA under which the ‘Non Resident Indians (NRIs)’ and ‘Person of Indian Origin (PIOs)’ can purch
A NRO bank account is an ordinary saving bank account opened for Non resident Indians. This is why it is known as Non-Resident Ordinary account. Since it is an ordinary account i.e. as good as a normal saving bank account, monies lying in NRO account cannot be taken outside the country or in other words, the monies lying in NRO account are not repatriable.
A NRO bank account is an ordinary saving bank account opened for Non- Resident Indians. This is why it is known as Non-Resident Ordinary account. Since it is an ordinary account i.e. as good as a normal saving bank account, monies lying in NRO account cannot be taken outside the country or in other words, the monies lying in NRO account are not repatriable.
A NRO account is an ordinary Non-resident account. When an Indian national or person of Indian origin residing in India leaves India for a foreign country (other than Nepal and Bhutan) for taking up employment, business or vocation outside India, or for any other purpose, indicating his intention to stay outside India permanently or for an indefinite period, he becomes a person resident outside India. His bank account, if any, in India is designated as an Ordinary Non-resident Account (NRO Account). Such accounts can also be opened with funds remitted from abroad. As funds in this type of account are non repatriable, they cannot be remitted abroad to the account holders or transferred to their NRE Accounts without the Reserve Bank’s prior permission. Interest earned on these deposits is not exempt from Indian Income-tax.
