Banks love to make this complicated. It isn't.
The one-line version
- NRE: park your foreign earnings in INR, tax-free, fully repatriable.
- NRO: receive India-sourced income (rent, dividends, pension) in INR, taxed in India, limited repatriation.
- FCNR: hold foreign currency as a fixed deposit in India, tax-free, no exchange risk.
When to pick what
Sending salary home and want it to grow tax-free? NRE savings or NRE FD.
Receiving Indian rent or selling property? You'll need an NRO — it's the only account that can legally receive India-sourced income.
Worried about the rupee weakening but want India-bank safety? FCNR in USD, GBP, EUR, AUD or CAD.
The repatriation rule most people miss
From an NRO you can repatriate up to USD 1 million per financial year, but you need a CA-issued Form 15CB and a self-filed 15CA. Budget two weeks.