To open an NRO account from the USA, you gather identity and address documents for both countries plus your PAN card, get the copies notarized, and submit the application to an Indian bank online, by courier, or at one of the bank’s US representative offices. Verification usually takes one to two weeks, after which you fund the account by wire transfer or US check. The account itself is straightforward; the tax withholding on the Indian side and the reporting obligations on the US side are where most applicants get caught out, so it’s worth understanding both before you sign.
Make Sure You Actually Need an NRO Account
Indian banks offer two accounts to non-residents, and they aren’t interchangeable. An NRO (Non-Resident Ordinary) account holds income that originates in India: rent from a flat, dividends from Indian shares, pension, or salary from Indian employment. Interest is taxable in India, and repatriation out of the country is capped at USD 1 million per financial year. An NRE (Non-Resident External) account holds money you earned abroad, such as your US salary converted to rupees; interest is tax-free in India and both principal and interest move freely back to the US.
If the money you need to manage is being generated inside India, NRO is the right account. If you’re parking US earnings in rupees, you want NRE. Many NRIs open both at the same bank.
Who Can Open One
Eligibility runs through India’s Foreign Exchange Management Act (FEMA). You’re treated as a non-resident for banking purposes if you’ve left India for employment, business, or any purpose that suggests an indefinite stay abroad. The practical cutoff: fewer than 182 days in India during the preceding financial year (April through March).
That covers Indian citizens on H-1B, L-1, and F-1 visas, green card holders, and Persons of Indian Origin and Overseas Citizens of India who hold foreign passports. NRO accounts can also be held jointly with an Indian resident on a “former or survivor” basis, which helps when family in India needs access.1Reserve Bank of India. FAQs – Display
If You Already Have an Indian Resident Account
FEMA requires you to convert any existing resident savings or current account to an NRO account once your status changes. Fixed deposits and recurring deposits have to be converted too. Continuing to run a resident account as a non-resident is a FEMA violation and can attract penalties. Banks handle the conversion with a request form, updated KYC, and proof of NRI status.
Documents to Gather
The list varies slightly between banks, but the core is consistent:
- Valid Indian or US passport. Include your OCI card if you hold one.
- Proof of NRI status: US visa (H-1B, L-1, F-1, and so on), green card, or employment authorization document.
- US address proof: utility bill, bank statement, or lease from the last three months.
- Indian address proof: Aadhaar, utility bill, or property document tied to your Indian residence.
- PAN card. If you don’t have one, some banks accept Form 60 temporarily, but getting a PAN first will save you problems later.2Income Tax Department. Form No. 60
- Two recent passport-sized photographs meeting the bank’s specs.
Because you’re applying from abroad, photocopies generally need to be self-attested or notarized by a US public notary. Some banks also accept attestation from the Indian Embassy or Consulate, or from an official at your current US bank. Signatures on every document have to match your passport exactly. Mismatched signatures are one of the most common reasons applications get bounced back.
Three Ways to Submit the Application
Online
Most major Indian banks let you begin online: complete the form on the bank’s site, upload scanned documents, and submit. The bank does a preliminary review, then asks you to courier the notarized physical originals to a processing center in India. It’s the fastest way to start, but it isn’t paperless.
At a US Representative Office
Banks including State Bank of India and ICICI operate representative offices in major US cities. If you live near one, you can hand in paperwork directly and often get documents attested on the spot. This tends to be the smoothest route when it’s available.
By Mail
You can courier the full notarized package straight to the bank’s central processing center in India. Priority courier from the US to India generally runs $30 to $100 for a legal envelope, depending on carrier and speed. Use a tracked service.
Timeline and Funding
Once the bank has a complete package, verification takes about one to two weeks. Activation confirmation usually arrives by email or through the bank’s mobile app. Fund the account with an international wire or a check drawn on your US bank; that first transaction closes out the setup.
What the Bank Will Withhold on Your Interest
Interest credited to an NRO account is subject to Tax Deducted at Source (TDS) under the Income Tax Act. The base rate is 30% with a 4% health and education cess, so the effective withholding is 31.2% for most account holders.3Income Tax Department. Non-Resident Individual for AY 2025-2026 Higher balances that push interest above ₹50 lakh in a financial year trigger additional surcharges.
You can cut that withholding sharply by claiming the US-India tax treaty benefit. The Double Taxation Avoidance Agreement caps the tax India can charge on bank interest at 10% of the gross amount.4U.S. Department of State. Convention Between the Government of the United States of America and the Government of the Republic of India – Article 11 Interest from non-bank sources is capped at 15%.5Embassy of India, Washington D.C. TDS (Withholding Tax) Rates Under Indo-US DTAA
To use the treaty rate, submit two documents to your Indian bank each financial year: a Tax Residency Certificate from the IRS, and a completed Form 10F filed through India’s income tax portal. Without them, the bank has to withhold at the full 31.2%. Set a reminder for the start of the Indian financial year in April; the difference on a meaningful deposit is significant.
Moving Money Back to the US
Repatriation is allowed but capped. The Reserve Bank of India lets NRIs remit up to USD 1 million per financial year from an NRO account, inclusive of other eligible assets.6Reserve Bank of India. Accounts in India by Non-Residents (FAQs) The funds have to come from legitimate Indian income, not borrowed money or transfers from someone else’s NRO account. You must use a single authorized dealer (bank) at a time for the USD 1 million facility.
Before the bank processes a remittance, file Form 15CA through the income tax portal. If your total remittance for the financial year exceeds ₹5 lakh, you also need a Form 15CB certificate from a Chartered Accountant in India, which typically runs a few thousand rupees per certificate.7Income Tax Department. Form 15CA FAQs Under ₹5 lakh, only the simpler Part A of Form 15CA is needed.
US Reporting You Can’t Skip
Once the account exists, US law requires you to report it. Two separate filings apply, they go to different agencies, and the penalties for missing them are steep.
FBAR (FinCEN Form 114)
If the combined value of all your foreign financial accounts exceeds $10,000 at any point in the calendar year, you file a Report of Foreign Bank and Financial Accounts with FinCEN.8Internal Revenue Service. Report of Foreign Bank and Financial Accounts (FBAR) The threshold is aggregate: an NRO savings account at $6,000 plus an NRE fixed deposit at $5,000 puts you over it. The filing is due April 15, with an automatic extension to October 15.
Non-willful violations carry fines up to $10,000 per account per year. Willful violations can cost the greater of $100,000 or 50% of the account balance.
FATCA (Form 8938)
Form 8938 is filed with your federal income tax return and has higher thresholds than the FBAR:
- Unmarried, living in the US: total foreign asset value over $50,000 on the last day of the tax year, or over $75,000 at any point during the year.
- Married filing jointly, living in the US: over $100,000 on the last day, or over $150,000 at any point.9Internal Revenue Service. Do I Need to File Form 8938, Statement of Specified Foreign Financial Assets
FBAR and Form 8938 are not interchangeable. If you meet both thresholds, you file both.
One Boundary on What the Account Can Fund
An NRO account doesn’t override FEMA’s investment restrictions. NRIs cannot buy agricultural land, plantation property, or farmhouses in India without special RBI permission, though these can be inherited or received as a gift from close relatives who are Indian residents. Residential and commercial real estate can be purchased using NRO or NRE funds without RBI approval, and sale proceeds can be routed back through the NRO account within the USD 1 million annual repatriation limit.6Reserve Bank of India. Accounts in India by Non-Residents (FAQs)