NRI bank accounts are unique banking for Indians working out of India. All their earnings and assets are in foreign currencies, like the Pound, Euro Dollar, etc. So they need NRI accounts to maintain their savings in Indian Currency.

All India’s major banks offer NRI accounts facilities to NRIs. Such as the State Bank of India, Punjab National Bank, ICICI Bank, HDFC, IDFC First Bank, and many more. Do you know what NRI accounts are? We will summarize NRI accounts and what kinds of NRI accounts are Available in India.

What is an NRI account?

As you know very well what, NRI stands for Non-Resident Indians. We will give you complete details about what is an NRI account. NRI can avail three kinds of bank accounts in India: NRE account, NRO account, and FCNR account.

People who have lived abroad for 120 days in a year and have spent less than 365 days in India in the past four years can open an NRI account.

Types of NRI Accounts

3 Types of NRI accounts

Eligible people can open NRI accounts in India. Look below to see full details of NRI accounts Step by Step:-

  1. NRE accounts – (Non-Resident External accounts )
  2. NRO accounts – (Non-Resident Ordinary accounts )
  3. FCNR accounts – ( Foreign Currency Non-Resident accounts )

1. What is NRE account

NRE account helps people to transfer their foreign currency to the Indian rupee. These accounts are a savings account, Fixed Deposit account, Recurring Deposit account, and Current account. NRI can earn interest on an NRE account with a Tax-FREE facility.

2. What is NRO account

NRO accounts are available for those NRIs who have an income source in India, such as rent, Dividends, and another revenue source, to maintain their Indian earnings in INR. 

People also can transfer international funds in NRO accounts. NRIs can open these accounts in Savings accounts, Fixed Deposit accounts, Recurring Deposit Accounts, and Current accounts. 

3. What is FCNR account

FCNR is a Fixed Deposit account, an NRI can transfer their foreign Currency in the same Currency to their FCNR account. The Foreign Currency Non-Resident (FCNR) account can open in any type of foreign Currency. Such as US Dollars, Canadian Dollars, Australian Dollars, British Pounds and Euro, etc.

Difference between multiple NRI Accounts

ParticularsNRE accountNRO accountFCNR account
Account PurposeTo transfer foreign earnings in Indian rupeesOpened with revenue earned from within India from assets, rent, investments, dividends, interest, etc.To save their overseas earnings in foreign currency
Types of accountsSavings accounts, Fixed Deposit accounts, Recurring Deposit accountsSavings accounts, Fixed Deposit accounts, Recurring Deposit accountsTerm deposit account with a minimum period of a year
Currency DenominationIndian RupeesIndian RupeesUS Dollars, Australian Dollars, Canadian Dollars, Singapore Dollars, Euro, British Pounds, etc
TaxabilityNo tax on interestInterest revenue is taxableNo tax on interest
Joint Holding FacilityJointly can be opened with another NRIJointly can be opened with Indian resident or another NRIJointly can be opened with another NRI


1. Who is eligible for an NRI account?

Ans: Those who have lived out of India for 120 days and spent less than 365 days in India, are eligible for an NRI account.

2. Full form of NRI?

Ans: Non-Resident Indian.

3. Full form of NRE account?

Ans: Non-Resident External.

4. Full form of NRO account?

Ans: Non-Resident Ordinary.

5. Full form of FCNR account?

Ans: Foreign Currency Non-Resident.

6. What is the difference between NRE and NRO account?

Ans: NRE:- NRE stands for Non-Resident External. NRE bank account opened to save NRI’s foreign earnings.

NRO:- NRO stands for Non-Resident Ordinary. NRO account opened to save NRIs Indian earnings, which he/she earned in India such as rent, Dividends, investments, etc.

7. Can I deposit Indian Rupees in the NRI account?

Ans: No, you cannot deposit Indian currency in the NRI account because the NRI account opened to save foreign incomes of NRIs.

8. Can I transfer money from an NRI account to Regular Savings Account?

Ans: Yes, you can transfer funds from an NRI account to Regular Savings Account.