NRIs and foreign nationals of Indian origin (PIO), residing overseas can open bank accounts in India without seeking any permission from the Indian government authorities. Basically, there are two types of bank accounts that NRI/PIO can maintain in India.

• Non Resident External, commonly referred to as a NRE account
• Ordinary Non-Resident account, referred to as NRO account

Non-Resident External (NRE) Accounts

This account will suit those who want to remit their overseas earnings to India, hold the savings in Indian Rupee and repatriate the proceeds back to their country of residence. Such accounts are suitable for those who want the dual benefit of high interest rates and freedom to repatriate funds back to country of residence. Any funds in your NRE accounts are freely repatriable. You can open Savings, recurring and fixed deposit NRE accounts.

Please note since the funds in NRE accounts are freely repatriable, there are limitations on the allowable credits under NRE accounts.

Non-Resident Ordinary Accounts (NRO Accounts)

These accounts are suitable for those NRIs who have an income source in India. NRIs can use these accounts to generate returns on earnings in India such as rent, dividends, pension, sale of Indian assets etc. The account is maintained in Indian Rupees.

You can open Savings, recurring and fixed deposit NRO accounts. Unlike NRE accounts, there are limitations on repatriation under NRO account.