Banking Awareness Study Notes on NRO Account (Non-Resident Ordinary Rupees)

NRO Account

Banking Awareness is considered to be the high scoring section in any competitive exam. It includes two main portions, current affairs GK and static GK. In this article, we will discuss some really important Banking Awareness topics that are covered in almost all competitive exams. Also, you can download the PDF of lists of different Banking Awareness topics.

 In Banking Section, the questions are asked from following topics: History of Banking, banking terms, Marketing of Banking Products, Functions of Banks, Banks and their taglines, schemes, committees related to banking, headquarters of bank, some Banking news related, apps launched by banks, new schemes etc. 

In a series of sharing useful study material for upcoming banking exams. Here, we are providing Banking Awareness notes for all banking Exams (IBPS, SBI & Other Banking Exams).

Banking Awareness Study Notes on NRO (Non-Resident Ordinary Rupees) Account

An NRO account is a savings or current account held by NRIs in India to manage their income earned in India. Account-holders can deposit and manage their accumulated rupee funds without any hassle. The account allows you to receive funds in Indian or Foreign currency.

Who is a PIO?

A ‘Person of Indian Origin (PIO)’ is a person resident outside India who is a citizen of any country other than Bangladesh or Pakistan or such other country as may be specified by the Central Government, satisfying the following conditions:

• Who was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or
• Who belonged to a territory that became part of India after the 15th day of August, 1947; or
• Who is a child or a grandchild or a great grandchild of a citizen of India or of a person referred to in clause (a) or (b); or
• Who is a spouse of foreign origin of a citizen of India or spouse of foreign origin of a person referred to in clause (a) or (b) or (c)

A PIO will include an ‘Overseas Citizen of India’ cardholder within the meaning of Section 7(A) of the Citizenship Act, 1955. Such an OCI Card holder should also be a person resident outside India.

Currency of the NRO Account

The NRO Account is an INR denominated account.

Period of Fixed Deposits or Recurring Deposits

The Fixed Deposit or Recurring Deposit can be for a period as are opened for a resident, per the regulations of RBI. There is no special treatment of a Fixed Deposit or Recurring Deposit in an NRO Account.

Permitted credits into a NRO Account

The permitted credits into the NRO Account are:

• Inward Remittances from outside India
• Interest Accruing on the account balance
• Rupee Gifts or loan made by a resident to an NRI or PIO, within the limits of Liberalized Remittance Scheme (LRS)
• Transfer from other NRO
• Legitimate dues in India
• Current Income like rent, dividend, pension, Interest etc.

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