Features of Non-Resident Ordinary Rupee Account Scheme [NRO Account]

ParticularsNon-Resident Ordinary Rupee Account Scheme [NRO Account] 
Who can open an account
Any person resident outside India for putting through bonafide transactions in rupees.
Post Offices in India may maintain savings bank accounts in the names of persons resident outside India and allow operations on these accounts subject to the same terms and conditions as are applicable to NRO accounts maintained with an authorised dealer/ authorised bank. 
Joint account
May be held jointly in the names of two or more NRIs/ PIOs.
May be held jointly with residents on ‘former or survivor’ basis. 
Type of Account
Term Deposit only
Period for fixed deposits
As applicable to resident accounts.
Permissible Credits
Inward remittances from outside India, legitimate dues in India and transfers from other NRO accounts are permissible credits to NRO account.
Rupee gift/ loan made by a resident to an NRI/ PIO relative within the limits prescribed under the Liberalised Remittance Scheme may be credited to the latter’s NRO account. 
Permissible Debits
The account can be debited for the purpose of local payments, transfers to other NRO accounts or remittance of current income abroad.
Apart from these, balances in the NRO account cannot be repatriated abroad except by NRIs and PIOs up to USD 1 million, subject to conditions specified in Foreign Exchange Management (Remittance of Assets) Regulations, 2016. Funds can be transferred to NRE account within this USD 1 Million facility 
Not repatriable except for all current income.
Balances in an NRO account of NRIs/ PIOs are remittable up to USD 1 (one) million per financial year (April-March) along with their other eligible assets.
Loans in India
Loans against the deposits can be granted in India to the account holder or third party subject to usual norms and margin requirement. The loan amount cannot be used for relending, carrying on agricultural/ plantation activities or investment in real estate business. 
Loans outside India
Not permitted
Disclaimer: The views / the analysis contained therein do not constitute a legal opinion and is not intended to be an advice. Readers of this document are advised to seek their own professional advice before taking any course of action or decision, based on this document.

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