Statutory Meaning & Definition
Non-Resident Ordinary Account — an INR-denominated account for NRIs to manage income earned in India (rent, dividends, pension). Repatriation limited to USD 1 million per year. Income is taxable in India.
Frequently Asked Questions (FAQs)
What is NRO Account in Indian corporate law?
Non-Resident Ordinary Account — an INR-denominated account for NRIs to manage income earned in India (rent, dividends, pension). Repatriation limited to USD 1 million per year. Income is taxable in India.
Why is NRO Account important for compliance?
NRO Account is governed by the Foreign Exchange Management Act, 1999 and regulated by RBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Who should know about NRO Account?
NRO Account is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with FEMA regulatory matters in India.
Contextual Analysis & Regulatory Circulars
Recent analysis and regulatory updates related to FEMA:
FEMA 395(4)/2026-RB: NRI/OCI Investment Payment Rules Amended — NRO Accounts Permitted for NPS, Designated Rupee Account Mandated
Published: 23 June 2026
RBI FEMA Second Amendment Regulations 2026: EDF Deemed Submitted for Service Exporters from 1 October 2026
Published: 3 November 2026
RBI Forex Derivative Curbs: USD 5 Million Limit, 20% FERR and Rebooking Ban (October 2026)
Published: 10 October 2026
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