General Information
Non-residents, (either Indian citizens on non-Indian citizens of Indian origin) can open non-resident bank accounts in India without the permission of the RBI.

RBI has granted general permission to banks authorised to deal in foreign exchange to open foreign exchange accounts. Overseas Corporate Bodies (OCBs) (i.e. partnership firms, societies, trusts and corporate bodies held to the extent of at least 60% by NRIs) who wish to open bank accounts in India can also avail of these facilities. Repatriability has been a major consideration for NRIs remitting funds into India. Hence repatriable and non-repatriable accounts are discussed separately.

Bank accounts can be classified as:
 

a) Repatriable accounts i.e. Non-resident external (NRE) accounts, which can be further classified as:

                        - NRE rupee account.

                        - Foreign currency non-resident account (FCNR account).

                        - FCNR (Banks) Scheme.

(b) Non-repatriable accounts, which can be further classified as:

                       - NRO Rupee account.

                       - Foreign Currency (Ordinary-non-repatriable) account.

                       - Non-resident (Non-repatriable) Rupee Deposit account.

It would be seen that the basic difference between repatriable accounts on the one hand, and the non-repatriable accounts, on the other, is the aspect of repatriation; the former balances are repatriable and latter are not. However, it must be noted that balances in NRE accounts must be built up out of foreign remittances or sale proceeds of shares, etc., held in India on repatriable basis.

FCNR accounts give protection against adverse fluctuation of the Indian rupee against foreign currency.
 

Authorised banks

NRIs can open bank accounts in India freely out of funds remitted from abroad or foreign exchange brought in from abroad or out of funds legitimately due to them in India. Reserve Bank has granted general permission to banks in India which are authorised to deal in foreign exchange (Authorised Dealers) to open such accounts freely. OCBs can also open such accounts with authorised dealers (and not with authorised co-operative/ commercial banks).
 

Co-operative banks

Besides authorised dealers, Reserve Bank has permitted certain State co-operative banks, Urban co-operative banks and Scheduled commercial banks which do not hold license as full-fledged authorised dealers, but which fulfill the eligibility criteria prescribed by the RBI, to maintain NRO and NRE accounts in rupees. They are, however, not authorised to maintain FCNR accounts. All branches of authorised dealers and authorised co-operative/commercial banks are not permitted to keep non-resident bank accounts. The branches which are not so authorised have to undertake all foreign exchange transactions through a designated branch of an authorised dealer. For the sake of convenience, it is considered advisable to deal with a bank branch which is directly authorised to keep non-resident bank accounts.
 
 

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