Transferring Money to India
Many Non-Resident Indians (NRI) transfer/wire their money to India. But many of you are unaware that you are loosing money by just transferring money , paying income tax on your interest rates and also loosing monetary value. This article summarises various non-equity bank accounts and a calculator to show which account to choose (especially in case of a Rupee devaluation). This calculator/guide will help you to choose the best NRI account in Indian banks based on length of deposit, rate and rupee value.
Sample NRO vs NRE vs FCNR Calculator. (Please wait as it might take time to load .....)
Comparing NRI accounts would help you to decide which type of account to choose.
Below Table shows a summary of the various accounts available.
(Please refer to individual banks for accurate data) NRO vs NRE vs FCNR
| NRO | NRE | FCNR | |
| Definition | Non Resident Ordinary Rupee Account | Non Resident External Rupee Account | Foreign Currency Deposits |
| Suited for | Indian Rupees account similar to a normal bank account ( paying rents, loans etc..) | Indian Rupees account with high fixed interest rate with no tax implications | Foreign Currency denominition holdings |
| Currency | Indian Rupees (INR) | Indian Rupees (INR) | Foreign currencies (USD $, GBP £, EUR, Yen ,AUD $ etc) |
| Eligibility | NRI, PIO | NRI | NRI, PIO, OCI, RFC |
| Flavours/types of account | Savings, Current, Term or Fixed Deposits. | Savings, Current, Term or Fixed Deposits. | Mostly Fixed Deposits. |
| How to Deposit | Income from domestic or international operations. NRO accounts resemble a lot like normal Indian bank account and can be credited/debited using all available means | Account can be opened by direct remittance from abroad, transfer from existing NRE, FCNR(B) accounts or with foreign currency note, travellers cheque tendered personally by NRIs during their visit to India | Same as NRE |
| Joint Holding | yes | Yes (limited) | Yes (limited) |
| Repatriation | Limited repatriation | Principal & Interest-both Fully Repatriable. | Principal & Interest-both Fully Repatriable. |
| Taxation | Interest income liable to tax . very high taxation rate if Double Taxation(DTAA) form not submitted. | Interest exempt from Income Tax. Balance not subject to Wealth Tax. (Conditions apply. Read RBI detailed documents) | Same as NRE Account |
| Interest | High. At par with resident accounts . | High. At par with NRO rates | Lower. But higher than developed countries |
| Returning NRI's | NRO account is to be redesignated as resident account immediately upon return, | Technically impossible to hold NRE after return. Has to convert to NRO or RFC | Can be continued and maintained as FCNR(B) uptil maturity and thereafter transferable to Residential Foreign Currency (RFC) |
For full details Refer RBI's documentation
(PS: AngularJS based currency converter/calculator for NRE, FCNR, NRO)