Glossary entry

NRE account

An NRE account, short for non-resident external account, is a type of Indian bank account for non-residents, generally used to hold money brought in from abroad and held in rupees. People often choose it for foreign earnings because of how funds can usually be moved back abroad, subject to the rules. The exact conditions, including how interest is taxed, are set by regulation and by each bank and can change, so confirm the current terms before relying on it. See also: NRO account, FCNR account, NRI, repatriation, and the guide NRI Bank Accounts Explained.