A NRO bank account is Non-Resident Ordinary Account. Money cannot be transferred from NRO account to NRE account. Erroneously transferred money from NRE account to NRO account, cannot be transferred back to NRE account. NRO account has restricted repatriation; money can be repatriated to a limit of 1 million USD per annum after RBI reporting through supported applications
NRO account helps you to keep your funds in rupee denomination here as well. Unlike an NRE account, with an NRO account your repatriation is allowed only under specific conditions. As the RBI's guidelines you are permitted to repatriate only up to $1 million per financial year (April to March) for purposes like education, medical expenses and current income. As per the RBI, you can hold an NRO account jointly with residents or NRIs. You are allowed to make nominations on the account as well. The interest you earn is taxable as per Indian income tax laws.
NRO account is meant to keep the money you earn in India befocontinue reading