How to Open an NRO Savings Account: A Step-By-Step Guide

December 03, 2024

How to Open an NRO Savings Account: A Step-By-Step Guide

If you are a Non-Residential Indian having an income stream in India and want a hassle-free way to manage your earnings, opening an NRO Savings Account may help. As a matter of fact, your Savings Account in India will be converted to an NRO Savings Account once you’re recognised as an NRI – consider this a mandatory activity. 

 

In this comprehensive guide, we have walked you through the step-by-step process of opening an NRO Savings Account, covering everything from eligibility criteria to the documents required. However, before we take you through the account opening process, let us give you a checklist that you may consider before opening your NRO Account.

 

Checklist to Open an NRO Savings Account

1. Check Interest Rates

Consider banks that offer higher interest rates on NRO Savings Accounts. Generally, Small Finance Banks provide better interest rates compared to traditional banks.

 

2. Know the Tax Implications

The interest earned on NRO Savings Account is subject to Tax Deduction at Source (TDS) - deducted at 30% plus applicable surcharge and cess. However, if your country of residence has a DTAA (Double Taxation Avoidance Agreement) with India, you can enjoy tax credit at the time of tax filing. To avail this benefit, you have to provide Tax Residency Certificate (TRC), Form 10 F, , PAN Card, and DTAA Annexure. You may contact your bank for better clarity.

 

3. Repatriation Rules

As per FEMA (Foreign Exchange Management Act) NRIs can repatriate only up to USD 1 million per financial year after tax deductions.

 

4. Understand the Eligibility Criteria

You are eligible to open an NRO Savings Account if:

 

  • You are a Non-Resident Indian. or Person of Indian Origin
  • You have a valid visa or work permit for residing abroad
  • You have taxable income in India

 

5. Documents Required

To open an NRO Savings Account, you may need to submit the following documents:

 

  • Passport with a valid visa or work permit.
  • Overseas address proof (such as utility bills or rental agreement)
  • Indian address proof (such as Aadhaar card or utility bills)
  • Passport-size photographs
  • PAN Card.

 

6. Fees and Charges

Take note of the service charges associated with NRO Accounts, if any. This will help you get a better understanding of the additional expenses.

 

How to Open an NRO Savings Account Online

For your ease of understanding, we have considered the steps involved in opening an NRO Savings Account with Ujjivan SFB.

 

Step 1: Visit Ujjivan SFB Website

Step 2: Go to 'NRI' section

Step 3: From the 'Savings Account' dropdown menu select 'NRO Savings Account'

Step 4: Click on 'Apply Now'. You will be redirected to the Form page

Step 5: Fill out the form and click on 'Submit'. Once done, our representatives will contact you to help you with the account opening process. 

 

Why Choose an NRO Savings Account with Ujjivan SFB?

As an NRI or a foreign national earning income in India, opening an NRO savings account with Ujjivan SFB offers several benefits:

 

  • Secure inward and outward remittance facility in foreign currency.
  • Free remittance facilities through NEFT and RTGS.
  • Competitive exchange rates for remittances.
  • No minimum Monthly Average Balance requirement.
  • Mandate facility available.
  • Repatriation of funds as per the FEMA (Foreign Exchange Management Act) Guidelines.

Final Thoughts

Consider all the aforementioned factors before opening an NRO Account. If you want to manage your overseas income, you may consider opening an NRE Savings Account. Additionally, to maximise your savings, you can opt for NRE Fixed Deposits and/or NRO Fixed Deposits. Evaluate your financial goals and manage your money stress-free with NRI Accounts.

FAQs

1. What are the benefits of opening an NRO Savings Account?

An NRO Savings Account offers a hassle-free way for NRIs to manage their income earned in India from overseas. Additionally, NRIs can enjoy competitive interest rates on their account balance. 

2. Will I get a remittance facility for my NRO Savings Account?

Yes, Ujjivan SFB offers inward and outward remittance facilities in foreign currency for all NRO Savings Accounts.

3. Does the NRO Savings Account offer free remittance facilities?

Yes, an NRO Savings Account with Ujjivan SFB offers free remittance facilities like NEFT and RTGS.

4. How much can I repatriate from my NRO Savings Account?

NRIs can repatriate up to USD 1 million per financial year from their NRO account, subject to terms and conditions.

5. What taxes am I liable to pay if I have an NRO Savings Account?

Any interest earned on the savings in an NRO account is subject to tax deduction at source as per the applicable tax rate decided by Income Tax authorities.

6. How frequently is interest paid on an NRO Savings Account?

As per RBI guidelines, interest on NRO Savings Accounts is paid at quarterly intervals on March 31st, June 30th, September 30th, and December 31st each year.

7. What is the minimum balance required for an NRO Savings Account?

The minimum balance required for an NRO Savings Account varies across banks. Ujjivan SFB doesn't have a minimum monthly balance rule and you can visit their website or a bank branch for the most accurate information.

8. Can I convert my existing savings account into an NRO Savings Account?

Yes, you can convert your existing savings account into an NRO Savings Account once you are recognised as an NRI. 

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