NRI Banking- NRE, NRO and FCNR

If you’re an NRI, choosing the right bank account is crucial for managing your finances in India. Here’s a quick breakdown of NRE, NRO, and FCNR accounts to help you decide: 1️⃣ Non-Resident External (NRE) Account 🔹 Purpose: Park & transfer foreign earnings to India 🔹 Currency: INR (Rupee-denominated) 🔹 Taxation: Tax-free interest 🔹 Repatriation: Fully repatriable (principal + interest) 🔹 Best For: NRIs wanting to save & transfer foreign income easily 2️⃣ Non-Resident Ordinary (NRO) Account 🔹 Purpose: Manage income earned in India (rent, pension, dividends, etc.) 🔹 Currency: INR (Rupee-denominated) 🔹 Taxation: Interest is taxable in India 🔹 Repatriation: Limited (up to USD 1 million per financial year on income from sale of movable and immovable property in India , with tax compliance) 🔹 Best For: NRIs with income sources in India 3️⃣ Foreign Currency Non-Resident (FCNR) Account 🔹 Purpose: Hold deposits in foreign currency (USD, GBP, EUR, etc.) 🔹 Currency: Maintained in foreign currency (no conversion to INR) 🔹 Taxation: Tax-free interest 🔹 Repatriation: Fully repatriable (principal + interest) 🔹 Best For: NRIs wanting to avoid forex risk while earning interest 💡 Key Takeaways: ✅ Want tax-free interest & easy repatriation? → Choose NRE ✅ Earning in India & need local payments? → Choose NRO ✅ Want to hold funds in foreign currency? → Choose FCNR

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