These are the key highlights for an NRO account or the Non-resident ordinary accounts in India.
You can land your money from your foreign earnings in India.
With an NRO bank account you can avail of free money transfers at competitive exchange rates. You can also add an Indian resident as a joint holder of your bank account. As an NRO account holder you are also entitled to get a free mandate card and cheque book for your family in India and due to this you can also provide them access to your bank accounts anytime and anywhere.
Now let us get into the details of what exactly is an NRO account
An NRO account or a Non-resident ordinary account is a savings account that enables you to maintain your income earned in India such as rent dividends, pension so on and so forth.
Why should one go for an NRO account?
Non-resident Indians should go for an NRO account because of the assurance it gives to manage the local rupee earnings in India efficiently even as you are living your life abroad. You can also easily predesignate your account when you change the status from resident to a no resident Indian.
Now lets us dive right into the characteristics and the benefits of having NRO accounts
There is a much higher yield post tax, one can avail of this benefit by the DTAA benefit facility.
Anyone who holds an NRO account can avail of low cost and hassle free money transfers which are readily available through myriad offline and online modes at competitive exchange rates.
Another benefit is that not much balance is required to maintain the NRO account, just Rs 10,000 is required to do the needful.
With the help of a domestic ATM cum debit card you can have anytime and anywhere access to your NRO account at over 11000 ATMs and over 3000 branches all over India plus one has the facility of the phone banking and 24×7 net banking as well.
The interest rates calculated on daily closing balances are at 4% per annum and the interest is paid on a half yearly basis and in the months of June and Decembver. The interest that is earned in the current financial year is completely repatriable but this is only after the tax has been deducted.
Another benefit is the safe and simple online money transfer tracking service with online transfer to over 100 banks in India.
An NRO account can also have a joint holding with an Indian resident or an NRI; what’s more you can also predesignate your NRO account when you become an NRI however your account number doesn’t change.