NRI bank accounts — which one do you actually need?

Three Indian bank accounts are available to NRIs, OCIs and PIOs — NRE, NRO and FCNR(B). The choice among them is driven by one question: what's the source of the money going in, and what do you want to do with it afterwards? This page is the short scenario-led reference; deeper mechanics live on the linked pages below.

For a full encyclopedic walkthrough of all three account types and their features, see NRI bank accounts in India — NRE, NRO and FCNR explained. For how to choose a bank (as distinct from which account type), see choosing an NRI bank. For FEMA forex rules around outward and inward remittance, see foreign exchange accounts.

Scenario — which account, one question at a time

"I earn abroad and want to park savings in India"

→ NRE Savings / FD.

Source: foreign income credited into Indian banking.
Interest: tax-free in India.
Repatriation: free — no ceiling, no Form 15CA/CB for moving this money back abroad.
Currency: denominated in INR (you bear the INR risk).

"I want to avoid INR exchange-rate risk on

foreign-earned savings"

→ FCNR(B) Fixed Deposit.

Source: foreign currency brought in.
Held in the original foreign currency (USD, GBP, EUR, CAD, AUD, JPY, SGD; some banks also CHF, NZD, HKD).
Interest: tax-free in India; rate tied to international benchmarks (LIBOR-successor curves).
Tenor: 1 to 5 years.
Repatriation: free on maturity.
No FD break-charges in the normal sense; see specific product terms.

"I receive rent, pension, dividends, or

interest in India"

→ NRO Savings.

Source: Indian-earned income (NRE and FCNR can't receive Indian-source credits).
Interest: taxable in India — TDS at 30% + surcharge + cess on NRO interest.
Repatriation: up to USD 1 million per ** financial year** aggregate, Form 15CA/CB paperwork.
Can be joint with a resident Indian — handy for parents or spouse operating the account in India.

"I sold Indian property or received

inheritance"

→ NRO (the sale proceeds / inheritance credits to NRO).

Same NRO rules apply.
Larger proceeds may need multi-year ** staging** to repatriate — see transferring funds from India.
Consider NRO-to-NRE transfer (under the same ceiling) to move the balance into freely-repatriable NRE for future years — see NRO to NRE transfer.

"I want to invest in Indian stocks"

→ NRE (for repatriable investment) and/or NRO (for non-repatriable investment).

Both use a PIS-linked or non-PIS demat-and-trading account depending on bank policy.
For inherited shares and gifts, the receiving demat must be NRO non-PIS.

"I'm returning to India for good"

→ None of the above for new money — the NRI account framework ends when you become FEMA-resident. Existing NRE/NRO/FCNR accounts must be redesignated to resident / resident-foreign-currency (RFC) on return. See bank accounts when returning to India.

"My Indian spouse / parent operates an account

for me in India"

→ **NRO with resident spouse / parent as joint holder on either-or-survivor mode**. NRE cannot be joint with a resident (except former-or- survivor mode under specific rules). FCNR similarly restricted.

Side-by-side reference

Feature	NRE	NRO	FCNR(B)
Source of funds	Foreign remittance or transfer from another NRE / FCNR account	Indian-source income + allowed foreign remittance	Foreign currency only
Currency held	INR	INR	Foreign currency (USD, GBP, EUR, etc.)
Account types	Savings, Current, FD, RD	Savings, Current, FD, RD	FD only (1–5 years)
Interest rate	Domestic INR rates (similar to residents' SB / FD rates)	Domestic INR rates	International benchmark-based
Interest taxable in India?	No (Section 10(4)(ii))	Yes — TDS 30%+	No (Section 10(15)(iv))
TDS on interest	Nil	30% + surcharge + cess	Nil
Principal repatriation	Free	USD 1 million per FY (across all purposes)	Free
Interest repatriation	Free	USD 1 million ceiling	Free
Joint holding with resident Indian?	No (exceptions for former-or-survivor)	Yes	No
Joint holding with another NRI	Yes	Yes	Yes
Power of Attorney to resident	Limited (operate only; no remittance)	Broader (operate, repatriate under rules)	Limited
Used for receiving pension / rent / dividends	No	Yes	No
Used for stock market PIS	Yes (PIS NRE demat)	Yes (non-PIS NRO demat)	No
Overdraft against balance	Available in INR at some banks	Available	Available against FCNR with specific rules
Can hold jointly in "former or survivor" mode	Yes (with another NRI; with resident in certain banks)	Yes	Yes (with another NRI)
FATCA / CRS reporting	Yes (to US IRS / CRS partner countries)	Yes	Yes

The three-account family setup

A typical NRI's Indian banking arrangement, once established, looks like:

NRE savings + FD — for foreign salary savings and investment surplus.
NRO savings + FD — for receiving Indian rent, dividends, inheritance, and other Indian-source money.
FCNR(B) FD — for a portion of foreign savings the holder wants to keep in foreign currency.
Linked demat and trading — NRE (PIS) for new investments; NRO (non-PIS) for inherited / gifted holdings.
Linked NRE → NRO auto-sweep is unavailable (accounts are FEMA-ring-fenced); inter-account transfers happen explicitly.

Most major banks (SBI, HDFC, ICICI, Axis, Kotak, IDFC First, IndusInd) bundle the three accounts into a single "NRI relationship" onboarding.

Documents to open — at a glance

Same across NRE / NRO / FCNR:

Current foreign passport — bio page + current visa / OCI page.
Proof of NRI status — work visa, PR card, OCI card, or FRRO registration certificate if in India on long-term visa.
Overseas address proof — utility bill, bank statement, driver's licence.
Indian address proof — if maintaining an Indian contact address.
PAN card — mandatory. Form 60 allowed for specific limited cases but most banks now insist on PAN.
Photograph to account-opening specification.
Initial deposit — varies by bank (typical INR 10,000 NRE / NRO savings; USD 1,000 to USD 10,000 FCNR FD minimum).

Video KYC or in-person KYC at the nearest branch abroad (Indian-bank representative offices in major financial centres) is how most accounts actually open now. See choosing an NRI bank for the onboarding mechanics.

FATCA / CRS reporting

Every Indian bank reports NRI account balances to the Indian Central Board of Direct Taxes, which forwards to:

US IRS (FATCA IGA signed 2015) for US persons.
OECD CRS partner tax authorities (150+ countries) for residents elsewhere.

Self-declaration of tax residency is collected at account opening; updated on any status change. See NRI property and FATCA for the US-side reporting.

Common account-choice pitfalls

Using NRO for foreign-earned money you intended to repatriate easily. Should have gone into NRE. Moving NRO → NRE uses the USD 1 million ceiling for the year.
Opening only NRE and then trying to receive Indian rental income there. Can't — Indian-source income must land in NRO.
Leaving FCNR-eligible foreign cash in NRE and bearing INR currency risk for years unnecessarily.
Continuing a resident savings account ** after becoming NRI** — FEMA breach. Must be redesignated to NRO within 180 days.
Joint holding NRE with resident spouse thinking "it's family" — not permitted in the standard either-or-survivor mode.
Skipping PAN — high TDS under Section 206AA on any eligible income stream; DTAA relief blocked.
Not informing bank on status change — account keeps operating under the old residential status; correction is the holder's responsibility.

Checklist — setting up NRI accounts

Determine your banking need — foreign savings parking (NRE), Indian-source income collection (NRO), foreign-currency hold (FCNR).
Pick a bank — see choosing an NRI bank.
Gather documents — passport, visa / OCI, PAN, overseas address proof, photo.
Complete video KYC or branch visit.
Open NRE + NRO as a baseline pair; add FCNR if holding foreign currency.
Set up online banking with international access, transaction alerts, beneficiary registration for outward remittance.
Submit DTAA paperwork (TRC, Form 10F, declaration) if invoking treaty rates on NRO interest.
Redesignate any prior resident account to NRO within 180 days of becoming NRI.
On return to India, redesignate NRE / NRO to resident; open RFC if retaining foreign currency.

Summary

NRE — foreign-earned money, tax-free, freely repatriable; cannot receive Indian- source income.
NRO — Indian-source income, taxable (30%+ TDS on interest), repatriable up to USD 1 million per FY; can be joint with resident.
FCNR(B) — foreign-currency fixed deposit, tax-free, freely repatriable; no INR exchange risk.
Most NRIs run all three (plus linked demat/trading) as one banking relationship.
FATCA / CRS reporting applies to all; tax residency declaration at onboarding.
On return to India, all three must be redesignated to the resident regime.

For the deep-dive on each account type, see NRI bank accounts in India — NRE, NRO and FCNR explained. For **how to choose a bank**, see choosing an NRI bank. For the FEMA forex framework around these accounts, see foreign exchange rules in India. For the account-selector tool, see bank account selector. For TDS on NRO interest and **how to claim DTAA relief**, see banking TDS reference and TDS on NRI income. For NRO repatriation workflow, see transferring funds from India and sending money out of India. For PAN requirements, see PAN for NRIs. For NRO-to-NRE transfer, see NRO to NRE transfer. For returning to India, see bank accounts when returning to India.