NRE vs NRO | NRIAccount.com

NRE Account » NRE vs NRO

Balances held in NRE accounts can be repatriated abroad freely, whereas funds in NRO account cannot be remitted abroad but used only for local payments in rupees.

Consequently, funds remitted from abroad or local funds which can otherwise be remitted abroad to the account holder can only be credited to NRE accounts.

Funds which do not qualify, under the Exchange Control regulations, for remittance outside India are required to be credited to NRO accounts.

Account Type	NRE	NRO
Currency	INR	INR
Purpose Of Account	NRE Accounts are used to hold overseas savings remitted to India after converting to INR	NRO Accounts are used to hold Indian income like rent, dividend etc.
Repatriation	Fully repatriable	Only interest on NRO account balance (after deducting TDS)
Types Of Account	Savings Bank Account Fixed Deposit Account	Savings Bank Account Fixed Deposit Account
Tax	Fully exempt	30% tax deducted at source
Local rupee funds	Not allowed	Can be deposited
Advantages	Rupee account with full repatriation	Account for local Deposits
Joint Holding Facility	Only with NRIs	Both with Resident/Non-Resident

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