NRE, NRO and FCNR(B) accounts explained

The three accounts

	NRE	NRO	FCNR(B)
Currency	Rupees	Rupees	Foreign currency
What goes in	Money earned abroad	Indian income (rent, dividends, pension)	Money earned abroad
Taking money out of India	Fully repatriable	Current income freely; balances up to USD 1 million per financial year, after tax	Fully repatriable
Interest	Tax-free in India	Taxable	Tax-free while you are non-resident
Account types	Savings, current, fixed deposits	Savings, current, fixed deposits	Fixed deposits of 1–5 years only

FCNR(B) protects you from exchange-rate risk because the deposit stays in foreign currency. A resident relative can be a joint holder of NRE or FCNR(B) on a “former or survivor” basis. Section reference for the tax exemption under the 2025 Act: Needs review.

When your status changes

• Leaving India: tell your bank, and your resident savings account must be re-designated as an NRO account.
• Returning: NRE and NRO accounts become resident accounts. FCNR(B) deposits can run until maturity at the agreed rate.

Under FEMA, you count as resident if you stayed more than 182 days in the previous financial year, subject to the purpose of your stay. Income-tax residency follows different tests: see residential status.

Investing and property

• NRIs and OCIs can buy shares and mutual funds on a repatriation or non-repatriation basis. Non-repatriation investment is treated like a domestic investment. Needs review for the current portfolio-investment caps.
• NRIs can buy any number of residential or commercial properties, but not agricultural land, plantations or farmhouses.
• When you sell, repatriation is limited to the amount originally paid in foreign exchange, for at most two residential properties.