How to Open an NRO Savings Account: A Step-By-Step Guide
August 02, 2024
If you are a Non-Residential Indian having an income stream in India and want a hassle-free way to manage your earnings, opening an NRO Savings Account may help. As a matter of fact, your Savings Account in India will be converted to an NRO Savings Account once you’re recognised as an NRI – consider this a mandatory activity.
In this comprehensive guide, we have walked you through the step-by-step process of opening an NRO Savings Account, covering everything from eligibility criteria to the documents required. However, before we take you through the account opening process, let us give you a checklist that you may consider before opening your NRO Account.
Checklist to Open an NRO Savings Account
1. Check Interest Rates
Consider banks that offer higher interest rates on NRO Savings Accounts. Generally, Small Finance Banks provide better interest rates compared to traditional banks.
2. Know the Tax Implications
The interest earned on NRO Savings Account is subject to Tax Deduction at Source (TDS) - deducted at 30% plus applicable surcharge and cess. However, if your country of residence has a DTAA (Double Taxation Avoidance Agreement) with India, you can enjoy tax credit at the time of tax filing. To avail this benefit, you have to provide Tax Residency Certificate (TRC), Form 10 F, , PAN Card, and DTAA Annexure. You may contact your bank for better clarity.
3. Repatriation Rules
As per FEMA (Foreign Exchange Management Act) NRIs can repatriate only up to USD 1 million per financial year after tax deductions.
4. Understand the Eligibility Criteria
You are eligible to open an NRO Savings Account if:
5. Documents Required
To open an NRO Savings Account, you may need to submit the following documents:
6. Fees and Charges
Take note of the service charges associated with NRO Accounts, if any. This will help you get a better understanding of the additional expenses.
How to Open an NRO Savings Account Online
For your ease of understanding, we have considered the steps involved in opening an NRO Savings Account with Ujjivan SFB.
Step 1: Visit Ujjivan SFB Website
Step 2: Go to 'NRI' section
Step 3: From the 'Savings Account' dropdown menu select 'NRO Savings Account'
Step 4: Click on 'Apply Now'. You will be redirected to the Form page
Step 5: Fill out the form and click on 'Submit'. Once done, our representatives will contact you to help you with the account opening process.
Why Choose an NRO Savings Account with Ujjivan SFB?
As an NRI or a foreign national earning income in India, opening an NRO savings account with Ujjivan SFB offers several benefits:
Final Thoughts
Consider all the aforementioned factors before opening an NRO Account. If you want to manage your overseas income, you may consider opening an NRE Savings Account. Additionally, to maximise your savings, you can opt for NRE Fixed Deposits and/or NRO Fixed Deposits. Evaluate your financial goals and manage your money stress-free with NRI Accounts.
