NRIs must have a NRO or NRE bank account to invest in Indian mutual funds, as AMCs cannot accept foreign currency investments. All investments by NRIs are made in Indian Rupees.
Best NRI accounts that can be opened without hassle
NRIs are allowed to hold three types of bank accounts and deposits in India. These accounts carry different features and, accordingly, may be suitable for different transactions. IMPACT FEATURE April 22, 2021 | Updated 17:44 IST
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Non-Resident Indians are allowed to hold three types of bank accounts and deposits in India - NRE accounts, NRO accounts, and FCNR (B) deposits. These accounts carry different features and, accordingly, may be suitable for different transactions. Here is a summary of the features of each type of accounts:
1. NRO Account: This stands for Non-Resident (Ordinary) Account and is denominated in Indian currency. When any remittance is received in such accounts in foreign currency, such amount is converted into Indian Rupees at the prevailing exchange rates and credited to the account. Such accounts can receive remittances in foreign currency from outside India and transfer from an