How to open NRO account in a Bank?

A Non-Resident Ordinary (NRO) Account is required by many Non-Resident Indians (NRIs) to manage their deposits or income earned in India such as dividends, pension, rent, or to credit sale proceeds of immovable properties in India, etc.
This account also allows you to remit funds from abroad either in Indian or foreign currency.

You have to give an application to the bank stating that your residential status has undergone a change from Resident Indian to NRI with effect from (mention the date of change of status to NRI) and request the bank to convert your existing SB account into NRO SB account. You need to submit the following attested copies for your identity and foreign address proof.

1. Identity proof: (1) Copy of the relevant pages of the Passport (2) copy of a valid visa /work permit (both mandatory)
2. Overseas address proof: ANY ONE OF THE FOLLOWING (1)Original copy of latest bank statement of account overseas, (2) Copy of employee ID card, (3) Copy of Labour card (4)Electric Bill (5) Telephone Bill (6). Copy of social security card
3. From the customer who is not personally visiting the branch, banks generally call for ANY ONE of the following, as an additional document.

    (1). Cheque drawn on customer’s overseas bank account, (2) Cancelled/Paid Cheque of customer’s overseas Bank account,(3)Copy of proof of Income/Pay slip/tax return.

In the case of an Overseas Citizen of India (OCI) or Person of Indian Origin (PIO), the following documents are required as identity proof.

(1) Copy of the relevant pages of the Passport and any one of the following

(a) Copy of the PIO card/OCI card,

(b) a copy of the relevant pages of the Passport of parents or grandparents,

(c) a copy of the marriage certificate.

To de-linking the Demat account from an existing SB account, you have to write a letter to your bank requesting to de-link the SB account. The customer needs to give the reason for delinking the accounts. The accounts will be de-linked only after the completion of all transactions passed prior to the de-linking date.  The customer has to give an undertaking to the bank that de-linking of the above accounts will not affect your liabilities and obligations if any.

Forms: Most of the banks have prescribed specific forms for the conversion of existing savings accounts to NRO accounts/ de-linking the Demat account from the SB account. Forms can be obtained from the bank or downloaded from the bank’s website.

Remittance abroad from NRO account:

As per present guidelines of RBI, a Non-Resident Indian (NRI) or a person of Indian Origin (PIO) may remit an amount up to USD one million per financial year, out of balances held in his NRO rupee account for all bonafide purposes, subject to pay applicable taxes in India, if any. (read: how to repatriate funds abroad from an NRO account). Further, any repatriation from the NRO account is subject to payment of applicable taxes in India.

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