Non-Resident (External) Rupee (NRE) account is a rupee account from which funds are freely repatriable. It can be opened with either fund remitted from abroad or local funds maintained in NRE/ FCNR accounts, which can be remitted abroad. The deposits can be used for all legitimate purposes. The balance in the account is freely repatriable.
Non-Resident Ordinary Rupee (NRO) account is a rupee account and can be opened with funds either remitted from abroad or generated in India. The amounts in such an account are non-repatriable. However, funds in NRO accounts can be remitted abroad subject to/as per various directives in force at the time of repatriation.
Investments from NRE account can be paid to either NRE or NRO or Savings account upon redemption of the funds/ dividend payouts. However, Investments from NRO account can be paid only to NRO or a Savings account and not to a NRE account & cannot be repatriated. For further queries on the bank account types available for NRI’s, please visit www.hsbc.co.in