TaxTMI 
TaxTMI 
Non-Resident Ordinary Rupee Account Scheme - NRO Account
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....ident in India against reimbursement in rupees or in any other manner. (c) At the time of opening of the account, the account holder should furnish an undertaking to the authorised dealer/ authorised bank with whom the account is maintained that in cases of debits to the account for the purpose of investment in India and credits representing sale proceeds of investments, he will ensure that such investments/ disinvestments will be in accordance with the regulations made by Reserve Bank in this regard. NOTES: A. Opening of accounts by individuals/ entities of Pakistan nationality/ ownership requires approval of Reserve Bank. B. Opening of accounts by entities of Bangladesh ownership requires approval of Reserve ....
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....open with an authorised dealer only one NRO Account which will be opened for a period of six months and may be renewed at six monthly intervals subject to the condition that the individual holds a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned. Such accounts can be opened by Authorised Dealers only,] 2. Types of Accounts NRO accounts may be opened/ maintained in the form of current, savings, recurring or fixed deposit accounts. The requirements laid down in the directives issued by Reserve Bank in regard to resident accounts shall apply to NRO accounts. 3. Permissible Credits/ Debits (A) Credits (i) Proceeds of re....
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....India in foreign exchange which have not lost their identity as remittable funds will only be considered by Reserve Bank for remittance outside India. Where an account (current/ savings) is opened by a foreign tourist visiting India, with funds remitted from outside India in a specified manner or by sale of foreign exchange brought by him to India, authorised dealers may convert the balance in the account at the time of departure of the tourist from India to foreign currency for payment to the account holder provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than interest accrued thereon. 5. Grant of Loans/ Overdrafts A. To Account hold....
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....bsequently becomes a person resident outside India, the authorised dealer may at their discretion and commercial judgement allow continuance of the loan/ overdraft facilities. In such cases, payment of interest and repayment of loan may be made by inward remittance or out of legitimate resources in India of the person concerned. 7. Joint Accounts The accounts may be held jointly with residents on 'former or survivor' basis. NRIs and/or PIOs may hold NRO account jointly with other NRIs and/or PIOs. 8. Operations by Power of Attorney Authorised dealers/ authorized banks may allow operations on an NRO account in terms of a Power of Attorney, provided such operations are restricted to (i) all local payments in rupees including payme....
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....older is only on a temporary visit to India, the account should continue to be treated as non-resident during such visit. 10. Payment of funds to Non-resident Nominee The amount due/ payable to non-resident nominee from the account of a deceased account holder, shall be credited to NRO account of the nominee with an authorised dealer/ authorised bank in India. 11. Reporting of transactions (i) The transaction in the account which may appear to represent reimbursement in rupees against foreign exchange made available to a person resident in India other than authorised dealer, as well as any other transaction of suspicious nature, should be reported to Reserve Bank. (ii) The transactions in these accounts shall be r....