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Understand NRI NRO NRE

The Simple definition explains what is NRI, NRE and NRO.

NRI - Non Resident Indian
NRO - Non Resident Ordinary
NRE - Non Resident External

NRI is The User

NRO and NRE are Account types
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From Rediff Answers

The two kinds of accounts are Non-Resident External (NRE) and Non Resident Ordinary (NRO).A person who is eligible to open these accounts is called an Non-Resident Indian (NRI). It is defined as a person who has lived out of INdia for a period not less than 180 days during the previous year. It only signifies the resident status of an individual and not an account.NRE account allow only remittances in foreign currencies. The account can be retained in designated foreign currencies viz USD, Pd stg, Euro and Yen. Alternatively the rupee equivalent of the amount converted at the exchange rates prevailing on the date of conversion is placed in the account. It is to be noted that the amounts lying in these accounts are freely repatriable, i.e the account holder is free to remit them out of the country. Transfer from one NRE account to another NRE account is allowed now. However remitting indian rupees into this account is not allowed. The cash withdrawals from this account are construed as rupee drawing and hence not allowed to be credited back into the account. All other terms and conditions of a bank account viz. savings, fixed deposit, joint holding, nominations, atm, internet banking etc are allowed for NRE account too. NRE account can be opened jointly with a resident indian, provided the resident is very closely related to the NRE. NRO account is for the purpose of any rupee remittances which the NRI could be getting in India. some eg. are rent for his house, interest from rupee deposits, earning from rupee investment, sale of house house etc. Balance in NRO accounts have limited repatriable eligibility, though a lot of liberalisation has been provided. 

1 comment:

  1. I really like the way you have explained the whole article. It is very informative.
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