NRO Account Citibank

Can you tell me in details about the Non Resident Ordinary Account (NRO) account in Citibank as one of my friend in America want to open an account in it, so want to know in detail about it?

[Shaleen]

The details about the Non Resident Ordinary Account (NRO) account in Citibank as one of your friend in America want to open an account in it, so want to know in detail about it is as follows:

Features and Benefits

The interest earned on Non Resident Ordinary Account (NRO) account is taxable in India.

Tax is currently deducted at source at 30% + CESS when the interest grows on deposit.

In addition to the interest taxed in India, the interest earned is also subject to tax in country of residence.

One can add both Resident Indians as well as Non Resident Indians as Joint Account Holders.

The account can be funded through:

Any genuine income from India

Funds from any other NRO or NRE Account in any bank in India

Foreign Currency Remittances from overseas

Repatriation needs to be in adherence to the guidelines of the Reserve Bank of India and is limited to equivalent of US$1 million per year for all qualified balances.

Additionally, one needs to provide documents as per the guidelines issued by the Reserve Bank of India depending on the source of the funds in the account.

If one sends funds in Foreign Currency, the funds are converted on Indian Rupees at the prevailing exchange rate as on the date of the transfer prior to deposit booking.

The minimum Deposit is Rs 80000

Tenurefrom 7 day to 5 years

Interest is computed using a fixed rate.

One can choose between Simple or Compound Interest.

Interest mounts up monthly.

For Compound Interest, interest is compounded every

90 days and paid on maturity.

For Simple Interest, interest is paid quarterly.