InvestorQ : Why should an NRI open an NRE or NRO account?
divya Sing made post

Why should an NRI open an NRE or NRO account?

Answer
user profile image
Suresh Patil answered.
2 years ago


A non-resident Indian (NRI) who works abroad and either has family or assets in India is faced with two situations:

1. He/she wants to send money back to his/her home in his/her native country; this is also called repatriation

2. He/she wants to keep his/her India-based earnings in India itself.

The government doesn’t allow NRI’s to conduct either of the above-mentioned financial transactions in accordance with the Foreign Exchange Management Act (FEMA). Thus, NRIs have to open NRE or NRO accounts in India.