What are NRE and NRO accounts?

NRE and NRO are types of Indian bank account for non-residents. An NRE account, non-resident external, is generally used to hold money brought in from abroad in rupees, while an NRO account, non-resident ordinary, is generally used to manage income that arises in India, such as rent or a pension. Their conditions, including how interest is taxed and how money can be moved out, are set by regulation and by each bank. Confirm current details with your bank and the Reserve Bank of India before relying on either account.¹