Difference Between NRE and NRO Account

The main difference between NRE and NRO Account. As an NRI you have option to open two types of saving accounts to manage income earned in India and abroad - non-resident rupee accounts (NRE), and non resident ordinary rupee account (NRO).

There are many differences between NRE account and NRO account as listed in the following table which would help you choosing between the two:

Difference between NRE and NRO Account

Basis of DifferenceNon-resident Rupee Accounts(NRE) Non Resident Ordinary Rupee Accounts(NRO)
Type of Accounts Can be opened as Savings Bank Deposit,
Current Account, Term Deposit
Vs
Can be opened as Savings Bank Deposit,
Current Account, Term Deposit
PurposeOpened by NRIs who earn income abroad
and would like to remit it back to
India.
Vs
Opened by NRIs who earn income in India
like income from rent from real estate
properties in their names or pension
etc.
Source of FundForeign funds or repatriable rupee funds
Vs
Local rupee earnings. Existing domestic
account of the residents can be
converted to NRO account on their taking
up employment/ business/immigration
abroad.
Maintained inIndian Rupee
Vs
Indian Rupee
Minimum BalanceUsually, Savings : Rs. 10,000, Term /
Fixed Deposit: Rs. 50,000
Vs
Usually, Savings : Rs. 10,000, Term /
Fixed Deposit: Rs. 50,000
Period 1 Year to 5 Years
Vs
1 Month to 10 Years
Rate of Interest 7% to 9% depending on amount, period and
bank
Vs
7% to 9% depending on amount, period and
bank
Joint Holding Allowed. Joint holders can be NRIs
residing in the same or different
countries
Vs
Allowed. Joint holder can be resident
Indians
Nomination Allowed. Nominees can be Indian
Residents/NRIs
Vs
Allowed. Nominees can be Indian
Residents/NRIs
RepatriabilityPrincipal as well as interest can be
entirely repatriable
Vs
Principle is not repatriable but current
income and interest earning net of taxes
is repatriable.
Tax Exemptions Interest is tax-free in India. However,
it would attract tax in the country of
residence of the account holder.
Vs
Interest is taxable. Tax is deducted at
source(TDS) at 30% plus surcharge and
cess
Currency RiskCurrency risk is there, there will be a
loss in case rupee depreciates further
at time of maturity and repatriation.
Vs
Currency risk is there, there will be a
loss in case rupee depreciates further
at time of maturity and repatriation.
Loan against this accountPermitted
Vs
Permitted

Upcoming Bank Holidays

2017 December 18 is a bank holiday in Meghalaya due to Death Anniversary Of U SoSo Tham.
2017 December 19 is a bank holiday in Goa due to Goa Liberation Day.
2017 December 21 is a bank holiday in Sikkim due to Losoong/Namsoong.
2017 December 25 is a bank holiday in Andaman And Nicobar Island due to Christmas.

Financial Calculators

Banks Loan Service

Search IFSC/MICR/ATM

 

 

 

ALL INDIA BANKS LIST
A B BANK LIMITED ABN-AMRO Bank N.V ABU DHABI COMMERCIAL BANK AIRTEL PAYMENTS BANK LIMITED
ALLAHABAD BANK American Express Banking Corp ANDHRA BANK Antwerp Diamond Bank NV
AXIS BANK B N P PARIBAS BANDHAN BANK LIMITED BANK OF AMERICA
BANK OF BAHARAIN AND KUWAIT BSC BANK OF BARODA BANK OF CEYLON BANK OF INDIA
BANK OF MAHARASHTRA BANK OF TOKYO MITSUBISHI LIMITED BARCLAYS BANK BHARATIYA MAHILA BANK LIMITED
Calyon Bank CANARA BANK CATHOLIC SYRIAN BANK LIMITED CENTRAL BANK OF INDIA
CHINATRUST COMMERCIAL BANK LIMITED CITI BANK CITY UNION BANK LIMITED CORPORATION BANK
DBS Bank Ltd DCB BANK LIMITED DENA BANK DEUSTCHE BANK
DHANALAKSHMI BANK EQUITAS SMALL FINANCE BANK LIMITED EXPORT IMPORT BANK OF INDIA FEDERAL BANK
HDFC BANK HSBC BANK HSBC BANK OMAN SAOG ICICI BANK LIMITED
IDBI BANK IDFC BANK LIMITED INDIAN BANK INDIAN OVERSEAS BANK
INDUSIND BANK JAMMU AND KASHMIR BANK LIMITED JP MORGAN BANK JSC VTB BANK
KARNATAKA BANK LIMITED KARUR VYSYA BANK KOTAK MAHINDRA BANK LIMITED Krung Thai Bank Public Co. Ltd
LAXMI VILAS BANK MASHREQBANK PSC MIZUHO CORPORATE BANK LIMITED OMAN INTERNATIONAL BANK SAOG
ORIENTAL BANK OF COMMERCE PUNJAB AND SIND BANK PUNJAB NATIONAL BANK RBL Bank Limited
SBM BANK MAURITIUS LIMITED SHINHAN BANK SOCIETE GENERALE SONALI BANK LTD
SOUTH INDIAN BANK STANDARD CHARTERED BANK STATE BANK OF BIKANER AND JAIPUR STATE BANK OF HYDERABAD
STATE BANK OF INDIA STATE BANK OF MYSORE STATE BANK OF PATIALA STATE BANK OF TRAVANCORE
SURYODAY SMALL FINANCE BANK SYNDICATE BANK TAMILNAD MERCANTILE BANK LIMITED THE BANK OF NOVA SCOTIA
THE NAINITAL BANK LIMITED UBS AG UCO Bank Ujjivan Small Finance Bank Limited
UNION BANK OF INDIA UNITED BANK OF INDIA UNITED OVERSEAS BANK LIMITED UTKARSH SMALL FINANCE BANK
VIJAYA BANK Woori Bank YES BANK ZILA SAHAKARI BANK LTD