June 22nd, 2009 
Tushar Mathur
Who IS an NRI ?
An NRI is an Indian citizen who stays outside India:
· For purposes of carrying out employment or any business or vocation
· Under circumstances indicating an intention to stay outside India for an uncertain duration.
· Any Indian citizen deputed outside India for a temporary period in connection with employment
Who is a PIO?
A citizen of a foreign country (other than a citizen of Bangladesh or Pakistan) is a PIO if:
He/She at any time held an Indian Passport. OR
He/She or either of his parents or any of his/her grandparents was a citizen of India; OR
· Spouse (not being a citizen of Bangladesh or Pakistan) of an Indian citizen (a) or (b) above
What type of Saving Bank accouts can be opened by an NRI or PIO in India?
Any NRI/PIO can open two types of savings accounts with any bank in India. They are NRE and NRO bank accounts
NRE Account:
A NRE bank account is an external saving bank account opened for Non resident Indians. This is why it is known as Non-Resident External account. Since it is an external account, any monies lying in NRE account can be taken outside the country or in other words, the monies lying in NRE account are fully repatriable. This money can be converted into any foreign currency at the behest of the account holder and can be remitted outside the country.
NRO Account:
A NRO bank account is an ordinary saving bank account opened for Non resident Indians. This is why it is known as Non-Resident Ordinary account. Since it is an ordinary account i.e. as good as a normal saving bank account, monies lying in NRO account cannot be taken outside the country or in other words, the monies lying in NRO account are not repatriable
Can money be transferred from NRO account to NRE account?
No, money cannot be transferred from NRO account to NRE account
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