Understanding NRO Accounts: A Complete Guide for NRIs If you're an NRI who has recently moved abroad or planning to relocate soon, understanding regulations around your Indian bank accounts is crucial. Under the Foreign Exchange Management Act (FEMA), continuing to hold a resident Indian savings account after your status changes to NRI is illegal. Converting to an NRO account promptly helps you avoid penalties and legal complications while staying compliant. What is an NRO Account? NRO Account: Your Gateway to Managing Indian Income An NRO (Non-Resident Ordinary) account is specifically designed for NRIs to manage their savings and income earned in India. This specialized account type provides flexibility while ensuring regulatory compliance. Key Features Accept deposits in Indian rupees and foreign currencies All funds are maintained in Indian rupees Ideal for managing rental income, dividends, and pensions Repatriation is restricted and subject to tax deductions How to Convert Your Resident Account to NRO The conversion process is straightforward when you follow these steps carefully. Ensure all documents are properly attested to avoid delays. 01 Download Conversion Form Visit your bank's website and download the standard request letter for converting a resident Indian savings account to NRO savings account. Each bank has its specific format. 02 Complete and Sign Fill out the form accurately with all required details. Ensure signatures from all account holders are obtained on the form before submission. 03 Gather Supporting Documents Collect self-attested copies of your PAN card (or Form 60), passport, visa, and address proof. These documents establish your NRI status and current residence. 04 Submit Your Application Post or courier the completed form with all supporting documents to your bank. Joint account holders must also submit a declaration along with KYC documents. Essential Documents Checklist Having the right documents ready ensures a smooth conversion process. Here's everything you need to prepare: 1 Resident to NRO Conversion Form Official bank form signed by all account holders 2 Identity Proof Self-attested PAN Card or Form 60 (if PAN is unavailable) 3 NRI Status Proof Self-attested copies of passport and valid visa demonstrating your non- resident status 4 Overseas Address Mandatory foreign address to be mentioned on the account conversion form 5 Address Verification Self-attested proof from the bank's acceptable list (Indian or overseas) Penalties for Non-Compliance Important: Continuing to hold your resident savings account after gaining NRI status is illegal under FEMA guidelines and may attract substantial penalties. Financial Penalty Up to 3 times the amount in your resident savings account, or ¹2 lakh when the sum is not quantifiable Daily Charges Additional penalty of ¹5,000 per day from the first day of intervention until the penalty is fully paid Don't risk these hefty penalties. Convert your account promptly to stay compliant with FEMA regulations. Contact your bank's customer care or visit the nearest branch for assistance with the conversion process. Acting now protects you from legal complications and ensures seamless banking operations.