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FEMA and RBI|Glossary entry|2 min read

NRO Account

Non-Resident Ordinary Account

Indian rupee account for NRIs to manage income earned in India such as rent, dividends, or pension; repatriation capped at USD 1 million per financial year.

Filing window

Repatriation above USD 1 million per year requires CA certificate and Form 15CA/15CB

Regulator

Reserve Bank of India (RBI)

Regulator

Reserve Bank of India (RBI)

Deadline

Repatriation above USD 1 million per year requires CA certificate and Form 15CA/15CB

Penalty

Procedural only

Legal basis

Foreign Exchange Management Act, 1999

§ 01
Definition

What is NRO Account?

Indian rupee account for NRIs to manage income earned in India such as rent, dividends, or pension; repatriation capped at USD 1 million per financial year.

Applies to
  • +NRIs receiving Indian-sourced income (rent, dividends, salary from Indian entity)
  • +GCC expats with local income sources during India posting
  • +Interest income subject to TDS at 30 percent
§ 02
Citation

Statutory basis

Foreign Exchange Management Act, 1999

Rule reference

Foreign Exchange Management (Deposit) Regulations, 2016

Enforced by

Reserve Bank of India (RBI), through Authorised Dealer banks

Citations are editorially curated. Always verify current applicability with qualified Indian counsel before acting on a specific matter.

§ 03
Why it matters

The stake

Repatriation above USD 1 million per year requires CA certificate and Form 15CA/15CB

Filing window for NRO Account. Skipping or mishandling this compliance carries direct financial and operational consequences.

Why NRO Account matters for your GCC

NRO Account is a cross-border RBI requirement for foreign-owned Indian entities and GCCs. Missing the repatriation above usd 1 million per year requires ca certificate and form 15ca/15cb obligation triggers regulatory exposure, and downstream filings or transactions may be blocked until rectification. Most foreign parents discover NRO Account issues only when a downstream transaction surfaces the prior gap, by which point rectification costs and operational delays have grown materially. Proactive handling avoids these cascading consequences.

§ 04
Pitfalls

The 4 ways NRO Account goes wrong

Real scenarios from real GCC compliance audits. Each one preventable.

01

Trap 01

Treating NRO Account as something the AD bank handles when the Indian company is the legal filer

02

Trap 02

Missing the filing window due to internal delays between finance, banking, and legal teams

03

Trap 03

Submitting with incorrect supporting documents such as FIRC, KYC, or board resolutions

04

Trap 04

Discovering the contravention only when attempting a downstream RBI transaction

§ 05
IRPR Network handles this

Done for you

FEMA and RBI Compliance

IRPR Network handles NRO Account as part of our FEMA and RBI Compliance service, with timely filings, supporting-document validation, citation tracking, and a zero-penalty compliance calendar.

Our workflow

  1. 01Identify the trigger event in your GCC operations
  2. 02Prepare and validate the NRO Account filing or compliance step
  3. 03Submit to the regulator and obtain acknowledgement
  4. 04Track in your compliance calendar for ongoing or recurring obligations
§ 07
Questions

Asked about NRO Account

4 specific questions that GCC operators ask most often, answered with citations to the relevant regulations.

Need help with NRO Account?

IRPR Network manages NRO Account as part of FEMA and RBI Compliance, with a zero-penalty guarantee.

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Q01

What is NRO Account and who does it apply to?

+

Indian rupee account for NRIs to manage income earned in India such as rent, dividends, or pension; repatriation capped at USD 1 million per financial year. For foreign-owned GCCs, NRO Account applies to nris receiving indian-sourced income (rent, dividends, salary from indian entity). IRPR Network handles NRO Account as part of our FEMA and RBI Compliance service.

Q02

When is NRO Account due?

+

NRO Account is due repatriation above usd 1 million per year requires ca certificate and form 15ca/15cb. Sustained timeliness is essential to avoid downstream regulatory friction.

Q03

What law governs NRO Account?

+

NRO Account is governed by Foreign Exchange Management Act, 1999, read with Foreign Exchange Management (Deposit) Regulations, 2016. The compliance is enforced by Reserve Bank of India (RBI), through Authorised Dealer banks.

Q04

Who handles NRO Account for foreign-owned GCCs in India?

+

IRPR Network handles NRO Account end-to-end as part of our FEMA and RBI Compliance service. Our team prepares filings, coordinates with regulators, validates supporting documents, and tracks all related deadlines on a defined compliance calendar.

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