Canara Bank

NON RESIDENT ORDINARY ACCOUNTS (NRO)

The main purpose of NRO account is for putting through bona-fide transactions in Rupees by the individuals held prior to becoming NRI or acquired by them in India during their status as NRI, not involving of the provisions of FEMA and Exchange control regulations.
NRO accounts can be opened in the form of Savings, Current or Term Deposit in Indian Rupees.
Remittances of an amount of balances in NRO account of NRI/PIO up to USD one million Per financial year is allowed for all bona fide purposes to the satisfaction of the bank.
Interest earned on NRO accounts is taxable under Indian Income Tax Act.
NRO accounts can be opened either in individual name or in joint names of the eligible persons.
NRO account may be held jointly with residents. However in such joint accounts, the funds of resident joint holder cannot be credited.
Loans/Overdrafts in India to deposit holders are available against security of deposits.
When a person resident in India, leaves India for a country (other than Nepal and Bhutan) for taking up employment, business or vocation outside India or for any other purpose indicating the intension to stay outside India permanently or for an uncertain period, he/she becomes a person resident outside India and the Bank account, if any, is required to be designated as an NRO account.

NON-RESIDENT ORDINARY RUPEE ACCOUNT SCHEME (NRO Account).

Who can open an account		Any person resident outside India (other than a person resident in Nepal and Bhutan) (Individuals/entities of Bangladesh/ Pakistan nationality /ownership as well as erstwhile OCBs require prior approval of RBI)
Joint account		May be held jointly with residents
Nomination		Permitted
Currency in which account is denominated		Indian Rupees
Repatriability		Not repatriable except for the following in the account:- 1. Current income. 2. Upto US$ 1 million per financial year for any bonafide purpose out of the balances in NRO account/sales proceeds of assets, including immovable property.
Type of Account		Savings, Current, Recurring, Fixed Deposit
Period for fixed deposits		As applicable to resident accounts.
Rate of Interest		In tune with the domestic interest rates. Interest rates are displayed on our web site
Loans
a) In India
(i) to the Account holder	Permitted
(ii) to third parties	Permitted
b) Abroad
(i) to the Account holder	Not Permitted
(ii) to third parties	Not Permitted
c) Foreign Currency Loans In India
(i) to the Account holder	Not Permitted
(ii) to third parties	Not Permitted
Purpose of Loan
a. In India
(i) to the Account holder	Personal requirement and /or business purpose . *
(ii) to third party	Personal requirement and / or business purpose. *
b. Abroad
To the account holder and third party	Not permitted.

* The loans cannot be utilized for the purpose of relending, or carrying on agriculture or plantation activities or for investment in real estate business.

Note:

a) When a person resident in India leaves India for Nepal and Bhutan for taking up employment or for carrying on business or vocation or for any other purposes indicating his intention to stay in Nepal and Bhutan for an uncertain period, his existing account will continue as a resident account. Such account will not be designated as Non-resident (Ordinary) Rupee Account (NRO).

b) We open and maintain NRE/FCNR(B) accounts of persons resident in Nepal and Bhutan who are citizens of India or of Indian origin, provided the funds for opening these accounts are remitted in free foreign exchange. Interest earned in NRE/FCNR (B) accounts can be remitted only in Indian rupees to NRIs and PIO resident in Nepal and Bhutan.

c) We extend all types of rupee loans under the “Retail lending scheme” to NRI’s