NRO (Non-Resident Ordinary Rupee a/c): Any person resident outside India may open NRO account with an authorized dealer or an authorized bank for the purpose of putting through bona fide transaction in rupees. NRO accounts can be opened in the form of current, savings, recurring or fixed deposit accounts.
NRE a/c [Non-Resident (External) Rupee a/c]: NRE account may be in the form of savings, current, recurring or fixed deposit accounts with maturity of minimum one year. Such accounts can be opened only by the NRI himself and not through the holder of the power of attorney.
FCNR a/c [Foreign Currency (Non-Resident) a/c]: FCNR (B) deposit account is similar to a usual Bank FD account and provides nomination facility and the nominee for the account can be a resident Indian. Also, FCNR (B) can be closed prematurely however to be entitled to earn interest the deposit should remain with the bank for a minimum of 1 year.
| Particulars | NRO (Non-Resident Ordinary Rupee a/c) | NRE a/c [Non-Resident (External) Rupee a/c] | FCNR a/c [Foreign Currency (Non-Resident) a/c] |
| Currency | Rupee Denominated (INR) | Rupee Denominated (INR) | Foreign currency (US Dollar, Pound Sterling, Euro, Japanese Yen) |
| Repatriation of principal & Interest | Principal: Not repatriable Interest: Freely repatriable |
Principal: Freely repatriable Interest: Freely repatriable |
Principal: Freely repatriable Interest: Freely repatriable |
| Foreign Currency exposure | Account holder is exposed to the fluctuations, in the value of INR to the extent of interest amount | Account holder is exposed to the fluctuations in the value of INR | Account holder is protected against changes in INR value vis-à-vis the currency in which the account is denominated |
| Source of funds | Fund received from India and abroad | Foreign inward remittances. | Foreign inward remittances. |
| Joint Account | Permitted with both residents and NRIs | Permitted only with NRIs | Permitted only with NRIs |
| Type of account | Savings, Current Account, Fixed Deposit, Recurring Deposits. | Savings, Current Account, Fixed Deposits, Recurring Deposits. | Term Deposits only |
| Period | For Fixed Deposits – as may be declared by the respective Bank | Minimum 1 year, maximum 3 years | Minimum 1 year, maximum 3 years |
| Taxability | Taxed as per applicable slab rate. | Tax Free | Tax Free |