NRI ACCOUNT

Basically Banks maintain two types of accounts for non residents i.e NRO account and NRE account. These accounts are maintained by banks only in foreign currency. NRO account is for the ordinary residents of the country and NRE account is for persons who are not residing in india.

The only difference between the ordinary saving and current account and Accounts maintained for non residents is the currency in which it is maintained.

Dear Kundan, Shailender has rightly mentioned..

Just want to add that interest on NRE A/c is Exempt whereas Interest on NRO A/c is taxable...

Further in the year in which NON RESIDENT BECOMES A RESIDENT, his NRE A/c gets converted into NRO A/c..