NRO Account - Features, Restrictions, And Benefits

Ordinary Non-Resident Rupee Accounts (NRO Accounts) are Rupee denominated non-repatriable accounts operated by an NRI /PIO and can be in the form of savings, current, recurring or fixed deposits. These accounts can be opened jointly with residents in India. When an Indian National / PIO resident in India leaves for taking up employment, etc. outside the country, other than Nepal or Bhutan his / her bank account in India gets designated as NRO account. 

The deposits can be used to make all legitimate payments in rupees. Interest income, from NRO accounts is taxable. Interest income, net of taxes is repatriable. Authorised Dealers (Banks) may allow remittances up to US $ 1 million, per financial year, out of balances held in NRO account for any bonafide purpose. Power of Attorney can be granted to residents for operation of account for limited purposes.