A Guide to NRO (Non-Resident Ordinary) Accounts

No, an NRO (Non-Resident Ordinary) account is not tax-free. All income earned through an NRO account is taxable in India.

The primary disadvantage of an NRO account is that it has limited repatriation of funds (up to $1 million every financial year without any prior approval). The interest earned in an NRO account is subject to Indian taxes and TDS.

No, an NRO account is not mandatory for an NRI. However, it's mandatory to either open an NRO or NRE account or convert your existing resident savings account to an NRO account after your residential status changes.

Yes, your parents can transfer money from their Indian bank account to your NRO account. An NRO account is suitable for receiving income or funds in INR, including gifts from family.

The minimum balance requirement in an NRO account depends on the bank. It generally ranges from Rs. 5,000 to Rs. 10,000 for metro branches. If you maintain an NRE or FCNR account with an NRO account, then some banks also offer zero-balance NRO accounts.