What are NRE, NRO accounts ? their differences ?

idlebrain · Post by **idlebrain** » Sat Feb 20, 2010 1:29 am

Right now I am in US, so far I am using money2india.com to send money to India. I have a Citibank Suvidha account to where the money is credited.

Now I am planning to open a Citibank NRE account (A.k.a. Rupee Checking account). Now how can I transfer USD into INR to my NRE account? How will be the exchange rate from citibank?

Which bank has better NRE account in terms of service, charges, conversion rate etc. Appreciate any inputs.

mudramantra99 · Post by **mudramantra99** » Thu Mar 18, 2010 10:09 am

Can i deposit a gift check of 5 lakhs received from my brother who is a resident of india into my nro account?

kkr · Post by **kkr** » Sat Mar 20, 2010 10:46 am

mudramantra99;269983Can i deposit a gift check of 5 lakhs received from my brother who is a resident of india into my nro account?

Sure, I don't see why not.

dbs · Post by **dbs** » Sat Mar 20, 2010 3:05 pm

mudramantra99;269983Can i deposit a gift check of 5 lakhs received from my brother who is a resident of india into my nro account?

Yes. And you do not have to pay any gift tax or any other kind of tax on the deposit.

mudramantra99 · Post by **mudramantra99** » Sat Mar 20, 2010 5:45 pm

thanks dbs and kkr. i did talk to to the gm of sbi yesterday and he said it will be fine.

arun_junta · Post by **arun_junta** » Tue Aug 31, 2010 9:58 am

Hi,
I would like recommendations on which account type I should open for my situation. 'I would like to open a account where I can do inward remittances & where when it comes to repartation I can take out the funds (cash, cash from MFs/stocks, property) that I had from the time when I was a resident indian + funds from the inward remittances.'

Pls advise.

hacking · Post by **hacking** » Sun Jun 19, 2011 9:57 pm

My understanding is NRO is for resident Indians who travel abroad and they utilize that account which is not repatriable. NRI's can also open NRO account to credit Rent payments, Interest and Dividend's that is invested within India and NRI's cannot transfer money from abroad. The options for NRI's to keep in rupee are NRE Account. I may be wrong and if some one corrects it, that will be helpful to everyone.

As usual, all banks websites doesn't give a clear picture between NRE and NRO (OR) I am a fool not to understand what they state:emwink:

By the way if you read the above statement which is NRO (OR) - It is not another NROOR Account but just I mentioned the literary (OR) for the option I suggested.

dbs · Post by **dbs** » Sun Jun 19, 2011 10:46 pm

arun_junta;323826 Pls advise.

NRE account can receive and send money in/out of India with no questions asked. GOI does not tax intt on NRE balances. It can not be funded by money transfer from an Indian source except with RBI permission. The denominition is the Indian Rupee.

NRO account can receive money from Indian/Foreign sources. Money can be transferred abroad but with some restrictions and form filling. Getting and keeping a FIRC for inward remittances will greatly facilitate outward remittance.

There is another FCNR account where you can keep money in foreign currency and freely remit it but interest on deposits is low, comparable to what you get in foreign banks.

Make your choice.