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Nri Account Types And Its Features Explained!

By Author: Neha Sharma
Total Articles: 105

An NRI account is the type of bank account meant for Non-Residential Indians i.e. Indians residing abroad. Most banks in India offer their customers NRI banking services. If you have an NRI account, you can deposit your hard-earned money and save it for future.

There are three types of NRI bank account. They are-

• NRE Savings Fixed Deposit Account
• NRO Savings Fixed Deposit Account
• FCNR Savings Fixed Deposit Account

Let us have a quick look at each type of NRI bank account and their exclusive features.

1. NRE Savings Fixed Deposit Account
With an NRE (Non-Resident External Rupee) account, the account holder can open a simple savings account but the balance will be maintained in the Indian currency only. Even if you make a deposit in another currency, it would be converted into Indian Rupee, before being deposited.

• You can withdraw money in the foreign currency, but first, you would need to convert the Indian Rupee into your preferred currency. The account holder has to bear the cost of the same.
• You can open a joint account with a fellow NRI, but not with an Indian resident. Nevertheless, you are allowed to transfer money to an Indian account with ease.
• You can send the entire amount in your account out of the country without the clearance from the Reserve Bank of India
• The deposits made as well as the interest earned in an NRE account is free from any income tax under the Govt. of India. However, the benefits of tax exemptions are only applicable to individual account holders and not for Overseas Company Bodies.
• Accountholders are eligible to apply for loans against the deposits in the NRE account
• Nominations are allowed in NRE accounts

2. NRO Savings Fixed Deposit Account
An NRO (Ordinary Non-resident Account) is any normal bank account held by a Non-residential Indian.

• You can make deposits into an NRO account from overseas
• The interests earned from this type of an account are not exempted from the Income tax in India
• An NRO account is non-repatriable, meaning accountholders cannot transfer their savings from this account into a foreign account without the permission of the RBI.
• You can deposit Indian currency to an NRO account
• Nominations are not allowed in NRO accounts
• You can open a joint NRO account with any Indian resident

3. FCNR Savings Fixed Deposit Account
FCNR (Foreign Currency Non-Resident) account is only useful for keeping fixed deposits for a certain period, ranging from one to three years.


• You can deposit amount as fixed deposit for at least one year and up to a maximum of three years
• You can transfer the principal and interest earned to an account overseas in the same currency or you can convert it to any other currency
• The interests earned on the fixed deposit amount are liable to tax exemptions under the Income Tax Law in India
• Nomination facility is available with an FCNR account
• You can get an overdraft on your current account or savings to account against the FCNR fixed deposit
• You cannot hold joint accounts with an Indian resident

If you are looking forward to opening an NRI account in India, make sure that you understand the features of each of these three accounts and choose one according to your needs.

Author bio:
Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about NRI account. Through her work, she explains the concept and its types

Total Views: 15Word Count: 550See All articles From Author

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