Today, not having a Bank Account is unimaginable. Besides, banks offer different accounts to accommodate the varied requirements of their customers. These include Savings Accounts, Current Account, Salary Accounts, and more. Similarly, banks also provide Non-Resident Indian or NRI Accounts.

These accounts primarily cater to NRIs and Persons of Indian Origin, who usually have different investment and banking needs. Let’s look at what these accounts are and their various types.

About NRI Accounts

An NRI Account refers to the type of account that NRIs or PIOs can open with a bank. There are usually three types of NRI Bank Accounts that such individuals can open in India. These include the following:

  • Non-Resident Ordinary Accounts

An NRO Account is especially useful for NRIs who still earn income in India while overseas. This is because NRO Accounts are mainly opened to deposit funds earned in India. You can also deposit the money you earn overseas in this account. NRO Accounts are rupee-denominated, and the funds in this account are held in Indian Rupees. NRIs can open this account jointly with a Resident Indian on a former or survivor basis.

  • Non-Resident External Accounts

An NRE Account is another type of account that NRIs can open and maintain. It allows you to easily transfer the money you earn abroad to India. However, you cannot use this account to deposit funds you earn within India. An NRE Account is a rupee-denominated account. Your foreign currency earnings are converted to and saved in Indian Rupees in this account.

This NRI Account offers high liquidity, and you can easily repatriate the funds from this account to your country of residence whenever required. Both the principal amount and interest earned are freely and fully repatriable. The interest earned on the funds in this account is also tax-free in India. You can easily transfer the money in this account to another NRE or NRO Account.

  • Foreign Currency Non-Resident Deposits

An FCNR-B Account is where NRIs and PIOs can make deposits in foreign currencies for one to five years. This is a Fixed Deposit. It offers returns at a fixed interest rate during maturity. They are maintained in foreign currency denominations and safeguard your foreign earnings against fluctuations in the exchange rate. The interest earned from this account is tax-free in India.

The deposit and interest are also fully repatriable. Besides, individuals can avail themselves of Loans in India against their FCNR Deposits.


NRIs still hold various investments in India. Some also have family living in the country. As a result, they might want to keep their money in Indian Bank Accounts. With a growing demand for these facilities for NRIs, banks offer several account types that suit their requirements. This lets NRIs maintain a financial stronghold in their country of origin while living overseas. Consequently, you can consider other accounts available for NRIs and choose one that matches your needs.