| 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 |
| Purpose | Opened 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 Fund | Foreign 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 in | Indian Rupee | Vs | Indian Rupee |
| Minimum Balance | Usually, 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 |
| Repatriability | Principal 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 Risk | Currency 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 account | Permitted | Vs | Permitted |