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Canara Bank - Introduction
Types of Accounts - NRO {Ordinary Non-resident Rupee} Account
- Rupee accounts maintained by
Non-resident individuals / entities are referred to as Ordinary Non-Resident Accounts (NRO
Accounts).
- The main purpose of NRO account
is for putting through bona-fide transactions in Rupees by the individuals held prior to
becoming NRI or acquired by them in India during their status as NRI, not involving of the
provisions of FERA and Exchange Control regulations.
- NRO accounts can be opened in
the form of Savings, Current or Term Deposit in Indian Rupees.
- NRO accounts of Non-residents
may be held jointly with residents.
- Balances held in NRO accounts
are not eligible for remittances abroad and requests if received for such remittance
require prior approval of RBI.
- The amount and the interest
earned thereon are not exempted from Indian Income tax.
- Loans/Overdrafts in India to
deposit holders are available against security of deposits subject to usual norms
regarding margin, rate of interest etc., for purposes other than re-lending, carrying
agriculture/plantation activities or for investment in Real Estate business.
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