What are FCNR accounts

Difference between NRE, NRI and NRO accounts

Difference between 2021

Main difference: NRI stands for non-resident indiche and omit NRI accounts ind the accounts opened by the NRI in India. NRI accounts (Non-Reident External Rupee Account) and NRE (Non


Main difference: NRI stands for Indian Non-Resident and thus NRI accounts are the accounts opened by the NRIs in India. NRI accounts (Non-Resident External Rupee Account) and NRE (Non-Resident Ordinary Rupee Account) are types of NRI accounts. An NRE account can only be opened with money earned abroad and not from a local rupee source, whereas an NRO account can be opened either with money earned abroad in foreign currency or rupees from Indian sources

When an NRI wants to open an account in India, they can choose from a variety of accounts such as an NRE or NRO account. Both are known as a rupee account as the money in both accounts is held in Indian rupees. Apart from that, another account that is for money in Indian rupees is known as an NRNR account. This account is a fixed deposit account that is kept in rupees.

An NRE account stands for the non-resident external account that is opened by depositing a foreign currency in the bank at the time the account is opened. The NRE accounts are selected by those NRIs who wish to deposit their overseas earnings in India and in the form of converted Indian rupees, while NGOs are chosen by those who wish to keep the Indian resident earnings in rupees in India. The money in this account can easily be repatriated outside of India and is not tied to the limit. Nor does this require approval from the Reserve Bank of India. This means that the rupee is converted into the selected foreign currency at the current exchange rate. Operations on this account are generally only permitted by properly executed power of attorney or a mandate for local payments. Transfers in foreign currency are only allowed to an NRE account. The amount of this account can be freely returned to India. When the account holder is returned to India, the account will be renamed as a resident account.

An NGO grant gives the NRI the opportunity to open up either with money from abroad in foreign currency or with rupees earned in India. The bank will automatically assign the local account to an NGO account for a resident of India who goes overseas for work or employment. An NGO account can also be opened by a person of Indian origin (PIO) and a foreign citizen of India (OCI). An NGO account or a non-resident commoner is like a regular bank account opened by an Indian who goes abroad with the intention of becoming an NRI. The main amount of the NGO savings account is completely tax-free. However, the interest is charged with income tax. This is the double taxation treaty that has been agreed between India and various countries.

These two accounts are mapped to the NRI accounts, which are denominated in Indian rupees. Both accounts have their own meaning and character. NRE accounts are fully repatriable and therefore help invest in India from overseas income. NGO accounts help hold profits that NRIs make in the form of rents, dividends, pensions, etc., even if you live outside of India. These two accounts can be opened as savings and current accounts and it is common for both accounts to be in Indian rupees. In addition to NRE, NRO, NRNE, the NRI accounts can also hold money in foreign currency. Foreign currency accounts mainly consist of types such as FCNR accounts, foreign currency accounts for residents, RFC accounts, RFC (D) accounts, EFEC accounts, etc. However, the opening of accounts by natural / legal persons from Bangladesh / Pakistan must be approved by the Reserve Bank become.

NRE accounts

NGO accounts


An NRE account can only be opened with money earned abroad and not from a local rupee source

An NGO account can be opened with either money earned abroad or with rupees from Indian sources

Earned capital and interest




Account is tax free

Interest and balances received on the account of NGOs are subject to income tax

Depositing rupees from earned income in India

Not allowed

Allowed to


Helps with income earned abroad

Helps manage one source income in India in the form of rents, pensions, etc.


NRE account with NRO is allowed

NRO account with NRE is not allowed

deposits and withdrawals

Foreign currency deposits

Payouts in Indian currency

The deposit can be made in any Indian or foreign currency

Payouts in Indian currency only

Influence of exchange rate fluctuations

Affected by daily fluctuations and conversion losses

Not associated with such risks


Loans up to Rs. 100 lakh can be extended against specified securities.

An authorized dealer / bank can provide loans against the security of time deposits in rupees.

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