Understanding NRI, NRE and NRO Accounts

Ratin Biswass / 11 Dec 2025 / Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund

I was reading about how NRIs can invest in mutual funds in India and came across NRI,

I was reading about how NRIs can invest in Mutual Funds in India and came across NRI, NRE and NRO accounts. Could you please explain what they mean? - Priti Sharma [EasyDNNnews:PaidContentStart]

Editor Responds : NRI, NRE and NRO accounts are special Bank accounts for Indians living abroad. An NRI (NonResident Indian) is someone who lives outside India for work, business or residency. For such individuals, banks offer two types of rupee accounts. An NRE (Non-Resident External) account is used to park your foreign income in India. You can freely transfer money from abroad into this account, and both the principal and interest are fully repatriable. The interest earned is also Tax-free in India, making it useful for saving overseas earnings. An NRO (Non-Resident Ordinary) account is meant for income earned in India, such as rent, dividends or pension. Money from this account can be repatriated, but only up to a limit and after paying applicable taxes. This account helps NRIs manage their India-based earnings smoothly. These accounts simplify banking for NRIs while meeting regulatory requirements.

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