An NRO account, or a non-resident ordinary rupee account, is an account NRIs are expected to open in India so that they conform with the Foreign Exchange Management Act (FEMA) guidelines. This is because according to FEMA, it is illegal for NRIs to have saving accounts in their name in India.

Essentially, NRO is the account that an NRI uses to manage the income earned in India. This income can be in the form of rent, dividend or even pension from abroad. The NRI can deposit as well as manage his/her accumulated rupee funds through a non-resident ordinary rupee (NRO) account.

Additionally, NRIs can also convert their existing resident savings account into an NRO account when their status changes from resident to non-resident.

Do note, however, than a minimum amount of Rs.10,000 must be maintained in an NRO account on a daily basis. Furthermore, any repatriation done through this account should be reported to RBI.