ICICI Bank has launched a new non-resident ordinary deposit feature in order to enable NRIs to maximise their post tax yield on NRO fixed deposits.

With this scheme, namely NRO Fixed Deposit Plus, NRI customers can avail tax deducted at source at a concessional rate under the double taxation avoidance agreement. The bank will offer this feature initially to non resident Indians from countries such as US, UK, Canada and Singapore.

However, plain vanilla NRO deposits, which earn interest equal to the high yield resident deposits, are not eligible for the statutory tax benefits enjoyed by non resident external or foreign currency non resident deposits.

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