NRE vs NRO vs FCNR vs RFC vs SNRR — FEMA Account Selector
Answer three questions to find the right NRI / returning-resident bank account — with eligibility, repatriability and tax treatment for all five account types.
- 1.Your status
- 2.Main purpose
- 3.Currency preference
Step 1 — Your status
Your recommendation appears here
Answer the three steps to get a single recommended account type with full eligibility, repatriability and tax treatment.
Decision rule reference
- still nri foreign earnings: NRE or FCNR (FCNR if you want to avoid INR risk; NRE if INR is fine)
- still nri indian income: NRO (rent, dividends, pension, salary from Indian employer go here)
- returning resident foreign assets: RFC (hold your foreign corpus in foreign currency as you transition)
- nri specific investment: SNRR (only if you have specific FEMA Schedule 5 transaction)
All 5 accounts at a glance
| Account | Currency | Repatriability | Taxability of interest | Best for |
|---|---|---|---|---|
| NRENon-Resident External Account | INR (but funded by foreign currency remittance) | Fully repatriable — principal + interest can be sent abroad without RBI approval | EXEMPT from income tax in India u/s 10(4)(ii) ITA 1961 — as long as account holder remains NRI | Parking foreign earnings in India; fully flexible to repatriate back |
| NRONon-Resident Ordinary Account | INR | USD 1 million per FY (principal) with Form 15CA/CB; interest fully repatriable | TAXABLE in India at 30% + surcharge + HEC u/s 195 (TDS mandatory) | Receiving Indian-source income (rent, pension, dividends); holding funds for Indian expenses |
| FCNRForeign Currency Non-Resident (Banks) Account | Foreign currency (USD, GBP, EUR, JPY, AUD, CAD — RBI-notified) | Fully repatriable — foreign currency stays as foreign currency | EXEMPT u/s 10(4)(ii) — as long as account holder remains NRI; currency risk stays with bank | Avoiding INR depreciation risk; NRIs who plan to repatriate at maturity |
| RFCResident Foreign Currency Account | Foreign currency (USD, GBP, EUR, JPY, AUD, CAD) | Freely repatriable as long as account holder has resident status + original source was foreign | TAXABLE on interest once Resident; principal is the returned NRI's foreign assets | Returning NRIs who want to hold their foreign assets in foreign currency after becoming Resident |
| SNRRSpecial Non-Resident Rupee Account | INR | Limited — only for specified transactions (direct investment, ESOP, ADR/GDR operations) | Taxable in India | NRI investors with specific FEMA-regulated inward/outward investment needs; ESOP exercises |
How to choose
Still an NRI? NRE or FCNR (FCNR if you want to avoid INR risk; NRE if INR is fine) · NRO (rent, dividends, pension, salary from Indian employer go here)
Returning to India? RFC (hold your foreign corpus in foreign currency as you transition)
Specific FEMA transaction? SNRR (only if you have specific FEMA Schedule 5 transaction)
FAQs
Can I have both NRE and NRO accounts?
Yes — most NRIs hold both: NRE for foreign earnings (tax-free, fully repatriable) + NRO for Indian income (TDS applies, USD 1mn repatriation cap).
What happens to my NRE/NRO accounts when I return to India?
Once you become Resident, NRE accounts must be redesignated as Resident Savings accounts or RFC accounts within a reasonable time. NRO accounts can be continued.
Is NRE interest really tax-free?
Yes — u/s 10(4)(ii) ITA 1961, NRE account interest is exempt from Indian income tax AS LONG AS the account holder remains NRI. Once you become Resident, the exemption ends.
Can an OCI open an NRE account?
Yes — OCI cardholders are treated as NRIs for FEMA purposes and can open NRE, NRO, and FCNR accounts.
What is Form 15CA/CB needed for?
When repatriating funds from NRO accounts, the AD Bank requires Form 15CA (self-declaration) and Form 15CB (CA certificate) for amounts above the threshold under Rule 37BB.