What are the benefits of NRE and NRO Accounts

NRE and NRO accounts offer several advantages to NRIs; here are the top three benefits that make them highly useful. 

1. Foreign Currency Remittance  

Both NRE and NRO accounts allow NRIs to receive foreign currency remittances from abroad. This feature makes it convenient for NRIs to transfer their overseas earnings to India securely and efficiently.  

2. Mandate Holder 

NRE and NRO accounts offer the facility to appoint a mandate holder, usually a trusted resident Indian, to operate the account on the NRI’s behalf. However, RBI guidelines permit only specific types of transactions through the mandate holder, such as paying utility bills or managing EMIs. This feature ensures controlled access while enhancing the account’s operational flexibility. 

3. Attractive Interest Rates 

NRE and NRO accounts offer competitive interest rates, often higher than those in developed countries where interest rates are low or even negative. This makes them attractive for NRIs looking to grow their savings. Interest earned on NRE accounts is tax-free in India, further increasing returns.