Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Choose the appropriate non-resident bank account for foreign earnings, Indian income, repatriation and foreign-currency deposits.
Select an account route
Existing resident accounts should be redesignated promptly when FEMA status changes.
Primary account
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Tax/repatriation note
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How This Is Calculated
Account choice depends on residency status and the source/currency of funds: NRE accounts hold foreign-earned income in rupee terms with full repatriability and tax exemption; NRO accounts hold India-sourced income (rent, dividends, etc.) with repatriation limits and taxability; FCNR accounts hold foreign currency directly (avoiding exchange-rate risk on principal) with similar tax-exempt, repatriable treatment to NRE.
Frequently Asked Questions
What is the main difference between NRE and NRO accounts?
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NRE accounts hold foreign-earned income, are fully and freely repatriable, and interest is tax-exempt in India. NRO accounts hold India-sourced income (like rent or dividends from Indian assets), have repatriation limits, and interest is taxable in India — the source of funds determines which account type is appropriate.
What is an FCNR account and how does it differ from NRE?
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FCNR (Foreign Currency Non-Resident) accounts hold deposits directly in a foreign currency, avoiding exchange-rate fluctuation risk on the principal — unlike NRE accounts, which hold funds in rupees and are exposed to currency movement. Both offer similar tax-exempt, repatriable treatment otherwise.
What happens to my NRI accounts when I return to India permanently?
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NRE/FCNR accounts typically need to be redesignated to resident accounts (or converted to RFC accounts if eligible) upon return, since the NRI account frameworks are specifically for non-resident status — continuing to hold them as NRE/FCNR after becoming resident isn't appropriate.
Scope: Helps select the appropriate account type (NRE, NRO or FCNR) for an NRI based on the source of funds and repatriation needs, per FEMA and RBI account-opening rules.
Calculation logic
NRE (Non-Resident External) account: for depositing foreign-earned income remitted to India; fully repatriable (principal and interest), and interest is exempt from Indian income tax for a person qualifying as non-resident under FEMA — recommended where the primary need is to park foreign income with full repatriability and tax-free interest.
NRO (Non-Resident Ordinary) account: for managing India-sourced income (rent, dividends, pension, etc.) or funds that were domestic before the person became non-resident; interest is taxable in India (with TDS deducted at source), and repatriation is subject to the USD 1 million per financial year limit (with CA certification via Form 15CA/15CB) — recommended for India-sourced income management.
FCNR (Foreign Currency Non-Resident) account: a term deposit held in a foreign currency (avoiding INR conversion and exchange-rate risk on the deposit itself); fully repatriable, and interest is exempt from Indian income tax for a person qualifying as non-resident under FEMA — recommended where the priority is avoiding currency risk on savings held in India.
Inputs and assumptions
Account eligibility and tax treatment are based on the account holder's status as 'person resident outside India' under FEMA — this is the same broad concept as, but a technically distinct legal test from, the Income-tax Act's residential status (see the FEMA Residential Status Checker for that specific test).
Interest exemption on NRE/FCNR accounts applies specifically while the account holder maintains non-resident (FEMA) status — on return to India and change of status, interest earned from that point generally becomes taxable, and existing NRE/FCNR accounts are required to be converted to resident accounts (or RFC accounts, for FCNR, if eligible) per RBI rules.
Exclusions and edge cases
This is a general selection guide; a person's specific circumstances (source of funds, expected repatriation needs, currency-risk tolerance) may indicate holding a combination of account types rather than a single one — the calculator presents the trade-offs rather than a single mandatory choice.
Does not itself open any account — actual account opening is done with an authorised dealer bank per its KYC/documentation requirements.