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Difference between NRE and NRO account


Here's a table showing 5 key differences between NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts: 

 

Feature 

NRE Account 

NRO Account 

Purpose 

For parking foreign earnings in India 

For managing income earned in India (rent, dividends, etc.) 

Currency Repatriation 

Fully and freely repatriable (principal + interest) 

Interest is repatriable; principal is subject to limits 

Taxability 

Interest earned is tax-free in India 

Interest earned is taxable in India 

Deposit Currency 

Only foreign currency allowed 

Both foreign and Indian currency allowed 

Joint Account Eligibility 

Can be held jointly with another NRI 

Can be held jointly with an NRI or a resident Indian 

 

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