Can I operate the NRO account through a Power of Attorney (POA) holder?

Yes, operations can be performed by a POA holder for local payments or remittances to the account holder, provided the transactions comply with banking regulations.

Is interest earned in NRO account taxable?

Yes, the interest earned on deposits in an NRO account is taxable as per the Income Tax Act, 1961.

What happens to the NRO account if my residential status changes?

If your residential status changes, the NRO account must be redesignated as a resident account immediately.

What are the joint account options for NRO accounts?

NRO accounts can be jointly held with up to four NRIs/PIOs or with a resident close relative on a former or survivor basis.

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Disclaimer: # The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. All plans listed here are of insurance companies’ funds.

Canara Bank NRO Account

The Canara Bank NRO (Non-Resident Ordinary) Account is a tailored banking solution for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to manage their income originating in India. Whether it’s rental income, dividends, or other local earnings, this account ensures seamless handling of financial transactions while complying with Indian tax and regulatory norms.

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What is the Canara Bank NRO Account?

The Canara Bank NRO (Non-Resident Ordinary) Account is designed for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to manage their income earned in India. It allows easy handling of local credits such as rent, pension, and interest income, while ensuring compliance with Indian regulations.

Features of Canara Bank NRO Account

Below are the features of Canara Bank NRO Account:

Repatriability: Funds are repatriable up to USD 1 million per financial year (April to March), subject to submission of Form 15CA, 15CB, and other formalities.
Tenure Flexibility: Fixed deposits can be opened for durations ranging from 15 days (above ₹5 lakh, 7 days) to 10 years.
Loan Facility: Loan or overdraft against deposits is available. However, loan proceeds cannot be remitted abroad.
Cheque Facility: Cheques are issued with a distinct "NRO Account" marking for easy identification.
Taxability: Both the principal and interest earned are subject to Indian taxation.
Nomination Facility: Available to ensure smooth succession planning.
Joint Accounts: Can be held jointly with NRIs/PIOs (up to four) or with a resident close relative on a former or survivor basis.
Power of Attorney (POA): Operations can be carried out by a POA holder for local payments or remittance to the account holder through standard banking channels.

Benefits of Canara Bank NRO Account

Below are the benefits of Canara Bank NRO Account:

Ease of Local Transactions: Ideal for managing rental income, pension, or other local earnings.
Access to Loans: Leverage deposits to secure loans or overdrafts for personal or business needs.
Secure Repatriation: Enables legitimate fund transfers abroad up to permissible limits with ease.
Convenience: Online FOREX transactions via FX4U allow remittances from the comfort of your home.
Wide Accessibility: Foreign tourists and students can open NRO accounts, subject to specific conditions.

Documentation Under Canara Bank NRO Account

Proof of NRI status documents	A. For NRI: Indian Passport with all relevant details along with any one of the below mentioned documents. Valid Visa Work Permit Proof/certificate of residence Employment / Employment Contract Copy Residence Permit E-visa
	B. For PIO/OCI: Foreign Passport with all relevant details along with any one of the below mentioned documents OCI Card PIO card Indian Ration Card (Self or Close Relative) Indian Voter ID card (Self or Close Relative) Expired Indian Passport (Self or Close Relative) Marriage Certificate along with spouse’s NRI/PIO status proof Certificate issued by Indian Embassy Relevant pages of Passport of Parents / Grandparents establishing their Indian Origin.
	C. For Seafarer: Indian Passport with all relevant details along with below mentioned documents Valid Visa Work Permit Valid Job Contract Continuous Discharge Certificate (CDC), if the disembarkation stamp on CDC is not more than 180 months’ old Expired contract letter (if the disembarkation stamp on CDC is not more than 180 days’ old Pay slips evidencing employment with shipping company ( not more than 6 months old)
	D. For Students studying in India (NRO a/c only): Abroad passport containing identity and address of home country along with below mentioned documents. Valid VISA Immigration Endorsement Admission letter from educational institution Current proof of address within one month of account opening For continuation of account beyond 6 months RBI permission is required (FRRO Registration)
	E. For Tourists accounts (NRO a/c only): Abroad passport containing identity and address of home country along with below mentioned documents. Tourist VISA Immigration Endorsement Current proof of address For continuation of account beyond 6 months RBI permission is required ( FRRO Registration)
Proof of Identity:	Passport
Address proof document	A. Indian address proof documents Any one of the below mentioned: Indian Passport Aadhaar Card Driving License Voter Identity Card NREGA Job Card signed by officer of state government B. Overseas address proof documents: Abroad Passport Sale deed agreement Lease deed/rent receipt not more than 3 months’ old Overseas Driving license Company ID containing address ID issued by government mentioning overseas address (PIO, OCI, Green Card, SSN card issued in US) Utility Bills (Mobile, Water, Electricity, Gas from private or public operators not exceeding 2 months prior only) Employment letter/Employer certificate mentioning overseas address Bank Statement of Overseas Bank account or Indian based bank in abroad (max.2 months old) Credit card statement (Not more than 3 months old from date of application) For Indian Diplomat certificate issued by Indian Diplomatic mission stating correct address Identity Card issued by Foreign government Registered Rent Deed Government issued letter mentioning overseas address Work Permit mentioning overseas address OCI/PIO card mentioning overseas address NRIs with seafarer work profile and on ship, can either give their employer's overseas address or Indian address. Council Tax Bill Permanent Resident permit mentioning overseas address: Example of Resident Permit: UAE-Resident Card, Qatar/Oman/ Singapore/Malaysian-Residence card, Saudi Arabia-Resident Permit (Iqaama), In case of joint account with close relatives, document evidencing and establishing relation is required. (For NRI with seafarer work profile and on ship, can either give employer’s overseas or Indian address).
Additional proof customers who are not visiting our branch for account opening	Any one of the following: Indian Passport Proof income / Income tax return / Salary slip of applicant Cancelled cheque of overseas bank account of applicant Cheque drawn on overseas bank account of applicant

Terms and Conditions Under Canara Bank NRO Account

Currency: NRO accounts are maintained in Indian Rupees (INR) and cannot be freely converted to foreign currency.
Taxation: Interest earned is taxable under the Income Tax Act, 1961.
Permissible Credits: Includes inward remittances, local earnings, and transfers from other NRO accounts.
Joint Accounts: Allowed with specific conditions for residents and NRIs/PIOs.
Change in Residential Status: NRO accounts must be redesignated to resident accounts upon a change in residency status.
Foreign Tourist Accounts: Temporary accounts can be opened for a maximum of 6 months, subject to closure upon departure.
Restrictions on Communication: Fund transfer instructions via email or fax are not accepted without independent verification.

Conclusion

The Canara Bank NRO Account is a comprehensive and versatile banking option for NRIs and PIOs. It offers features that cater to local income management, tax compliance, and limited repatriation. With added benefits like nomination facilities, loan availability, and POA-based operations, it ensures hassle-free financial management from anywhere in the world.

FAQ's

Can I operate the NRO account through a Power of Attorney (POA) holder?

Yes, operations can be performed by a POA holder for local payments or remittances to the account holder, provided the transactions comply with banking regulations.
Is interest earned in NRO account taxable?

Yes, the interest earned on deposits in an NRO account is taxable as per the Income Tax Act, 1961.
What happens to the NRO account if my residential status changes?

If your residential status changes, the NRO account must be redesignated as a resident account immediately.
What are the joint account options for NRO accounts?

NRO accounts can be jointly held with up to four NRIs/PIOs or with a resident close relative on a former or survivor basis.

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*Past 10 Year annualised returns as on 01-01-2025
*All savings plans are provided by the insurer as per the IRDAI approved insurance plan. Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 2 Cr. is for a 30 year old healthy individual investing Rs 18,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: 1,06,79,507 @ CAGR 4%; 2,12,15,817 @ CAGR 8%. All plans listed here are of insurance companies’ funds. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).