Ordinary Non-Resident Accounts (NRO)
These accounts can be opened by Non-Resident Indians (NRIs) viz. non-resident persons of Indian origin or nationality (other than nationals of Pakistan and Bangladesh) and by Overseas Corporate Bodies (OCBs) provided ownership/ beneficial interest of NRIs is at or above the level of 60%. These accounts can be opened in Indian Rupees in the shape of current/savings/fixed deposits. NRO accounts can be opened jointly with resident only on `Former or Survivor basis’. Funds held in NRO acccounts can be repatriated abroad upto USD 1 million calendar year on account of Education, medical and sale proceeds of immovable property upto 30th June 2003 subject to certain conditions as stipulated by Reserve Bank of India. Upon becoming non-resident individuals, existing resident accounts are also classified as NRO accounts. All legitimate dues in rupees (which include local credits also) and proceeds of foreign remittances can be credited to these accounts. The funds held in the NRO accounts can be used for all local payments. Selected transactions over INR 100,000 are subject to reporting on form A4. Interest rates applicable thereon are same as on resident accounts. These accounts are subject to deduction of tax by the bank as per Income-Tax rules.