Can all NRIs, PIOs and OCIs open FCNR (B), NRE and NRO accounts?

When it comes to opening different types of bank accounts, eligibility rules differ depending on the person’s residential status and the type of bank account they want to open. Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) cannot open a regular resident savings account in India, but they can open Non-Resident Ordinary (NRO), Non-Resident External (NRE) and Foreign Currency Non-Resident (Bank) [FCNR(B)] accounts in India? Know what banking rules say about opening these accounts

Can NRIs, OCIs and PIOs open domestic/resident accounts in India?

Domestic or resident bank accounts are generally meant for people who are residents of India. NRIs and PIOs, however, cannot open these accounts. Overseas Citizens of India (OCIs) can open a resident account only in certain cases, as allowed under the applicable rules.

Foreign nationals who are working in India can open a domestic or a resident account, subject to the prescribed conditions. Foreign students and foreign tourists visiting India for a short period cannot open a regular resident account under these rules.


Foreign nationals who come to India on employment and on leaving India can convert their domestic account into an NRO account. It will then enable them to receive their legitimate dues subject to certain conditions. But, the continuation of the account beyond six months will require the Reserve Bank of India (RBI’s) approval.

As per the SBI Bank website, “When an OCI comes to India with an intention to stay for an indefinite period and stays more than 182 days, he/she loses the privileges available to NRIs/PIOs/OCIs. Such an OCI is required to re-designate/convert his/her NRE/NRO/FCNR accounts to a resident account, or an NRE/FCNB account to an RFC account as the case may be. Further, an OCI can open all types of accounts allowed to a resident customer.”

Can NRIs, OCIs and PIOs open NRO accounts?

NRO accounts can be opened by NRIs, PIOs and OCIs, subject to the applicable conditions. Foreign students studying in India can also open an NRO account, while foreign tourists on a short visit to India are allowed to open one under specific conditions. Also, the continuation of an NRO account beyond six months will require the RBI’s approval. However, foreign nationals employed in India cannot open an NRO account under the eligibility conditions mentioned here.

Condition for foreign students to open NRO account

An NRO account can be opened for foreign students studying in India on the basis of his/her passport (with appropriate visa and immigration endorsement), which contains the proof of identity and address in the home country along with a photograph and a letter offering admission from the educational institution, subject to following conditions:

Within a period of 30 days of opening the account, the foreign student should submit to the branch where the account is opened, a valid address proof giving a local address, in the form of a rent agreement or a letter from the educational institution as a proof of living in a facility provided by the educational institution. Banks should not insist on the landlord visiting the branch for the verification of rent documents and alternative means of verification of local address may be adopted by banks.

During the 30 days of period, the account should be operated with a condition of allowing foreign remittances not exceeding USD 1,000 into the account and a cap of monthly withdrawal to Rs 50,000/- pending the verification of address.

On the submission of the proof of current address, the account would be treated as a normal NRO account, and will be operated in terms of extant instructions.

Can NRIs, OCIs and PIOs open NRE accounts?

NRE accounts are available to NRIs, PIOs and OCIs who meet the prescribed eligibility requirements. Foreign nationals working in India, foreign students and foreign tourists are not eligible to open NRE accounts under these rules.

Can NRIs, PIOs and OCIs open FCNR(B) accounts?

FCNR(B) accounts are available to NRIs, PIOs and OCIs, subject to the applicable conditions. These accounts are maintained in permitted foreign currencies. Foreign nationals working in India, foreign students and foreign tourists are not eligible to open FCNR(B) accounts under the conditions mentioned above.

Things to note

NRIs (including PIOs/OCIs) residing in Nepal or Bhutan are not permitted to open NRO accounts.

Eligibility Conditions For Opening Of Resident Indian Or NRI Accounts
Account Type	Domestic / Resident Accounts	Non Resident Ordinary (NRO) Accounts	Non Resident External (NRE) Accounts	Foreign Currency Non-resident (Bank) {FCNR (B)} Accounts
Residential Status
NRI	Not-permitted	Permitted	Permitted	Permitted
PIO	Not-permitted	Permitted	Permitted	Permitted
OCI	Permitted in certain cases	Permitted	Permitted	Permitted
Foreign Nationals on employment in India	Permitted	Not-permitted	Not-permitted	Not-permitted
Foreign Students studying in India	Not-permitted	Permitted	Not-permitted	Not-permitted
Foreign Tourists on short visit to India	Not-permitted	Permitted	Not-permitted	Not-permitted