NRE vs. NRO Account
✓ Last verified 14 Sep 2026
The short version
An NRE account holds foreign income brought into India (tax-exempt interest, fully repatriable); an NRO account holds income earned within India while a non-resident (taxable interest, restricted repatriation) - mixing the two up has real tax consequences.
See our full article on types of bank accounts in India for the detailed breakdown - in short, NRE (Non-Resident External) accounts are for foreign earnings you want to bring into India, with tax-exempt interest and full repatriability. NRO (Non-Resident Ordinary) accounts hold income earned within India (rent, dividends) while you're a non-resident, with taxable interest and more restricted repatriation. Depositing Indian-sourced income into an NRE account, or vice versa, is a common and consequential mistake.
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