An NRO (Non-Resident Ordinary) Account is a bank account in India for people who live abroad (NRIs) but still have income or money coming from India.
Banks like State Bank of India, HDFC Bank, and ICICI Bank offer this type of account.
Real Example
Ramesh works in Dubai but owns a shop in India that gives him ₹30,000 rent every month. Since he is now an NRI, he cannot use a normal savings account in India.
So he opens an NRO account to:
Receive rent money
Pay bills and expenses in India
Withdraw cash when visiting India
Send money abroad if needed
This is how an NRO account is used in real life.
Who Should Open an NRO Account?
You should open an NRO account if:
You are living outside India (NRI)
You earn money in India (rent, pension, interest, etc.)
You want to manage expenses in India
You have property or investments in India
Types of NRO Accounts
Savings Account
Current Account
Fixed Deposit (FD)
Recurring Deposit (RD)
Cash Deposit Limit
There is no fixed maximum limit, but some rules apply:
Cash deposits above ₹10 lakh in one year may be reported to the Income Tax Department
PAN card is required
Source of money should be clear
Cash Withdrawal Limit
ATM Withdrawal
Usually ₹25,000 to ₹50,000 per day (depends on bank and card)
Branch Withdrawal
No fixed limit if balance is available
Large amount may need advance request to the bank
Money Transfer Abroad Limit
You can send up to USD 1 million per financial year from an NRO account
Taxes must be paid before sending money
Tax Rules
Interest earned is taxable in India
Bank deducts TDS (around 30% plus extra charges)
You can claim refund by filing an income tax return if eligible
Main Features
Account is maintained in Indian Rupees (₹)
Can receive Indian income easily
Joint account allowed with family member (as per rules)
Debit card, cheque book, and net banking available
Important Rule
If you move abroad and become an NRI, your normal savings account in India should be converted into an NRO or NRE account. Keeping a regular savings account is not allowed under regulations.
Conclusion
An NRO account is useful for NRIs who still have financial connections with India. It helps manage income, expenses, withdrawals, and transfers smoothly while living abroad.
