How to open NRO RD account

NRIs or Non-Resident Indians are Indian citizens who live outside India. Many Indians go abroad in order to pursue their careers, get further education or are posted overseas by their employers for certain assignments. When you become an NRI, you’re no longer allowed to hold a regular savings or fixed deposit account in India. If you want to continue managing your finances in India, then must either open an NRO or Non-Resident Ordinary account for income generated in India, or an NRE or Non-Resident External account to deposit foreign income.

Other than a basic NRE and NRO account, you may also open an NRO Fixed Deposit account or an NRO Recurring Deposit account. In this article, we’ll be looking into how you can open an NRO Recurring Deposit Account.

What is an NRO Recurring Deposit Account?

A NRO recurring deposit account is an account where you can make fixed deposits at regular intervals in order to earn interest and save funds for your future plans. It is an investment tool that can help you generate a corpus by saving and investing small sums regularly. The interest for recurring deposits is also quite attractive. So, if you’re an NRI who wishes to open a recurring deposit account in India and start making small deposits from your Indian income, then you can look into an NRO Recurring Deposit Account.

Even though your regular investments will not be huge, over time they will add up and create a sizable corpus.

Features and Benefits of NRO RD Account

  • Easy Deposits: You can easily make deposits in your NRO RD account by transferring money from your NRO or NRE account.
  • You can make small deposits: An NRO RD account allows you to regularly deposit as little as Rs. 5000 and up to Rs. 1,00,000.
  • Flexible tenure: An NRO RD account can have a tenure ranging from 6 months to 10 years. You can choose a tenure as per your convenience.
  • Tax educated at Source (TDS): TDS is applicable on the interest earned in an NRO RD account and will be deducted at source.
  • Rate of Interest: Interest rates for NRO RD accounts will depend on the bank. Usually, recurring deposit rates range from 2.50% to 5.50% p.a. for tenure ranging from 7 days to 10 years.

How to Open an NRO Recurring Deposit Account?

Opening an NRO Recurring Deposit is quite simple. Simply approach your preferred bank and fill in the application form for an NRO recurring deposit account. You will need to furnish basic documents as well as documents to prove that you’re an NRI. You can either apply for an NRO RD account from overseas or do so within India.

Documents Required for NRO RD Account

When applying in India:

  • Self attested copies of first four and last four pages of valid passport.
  • Self attested copies of employment visa/valid work permit/residence visa/resident permit.
  • Address proofs

When applying overseas:

  • Self attested copies of the above documents which also must be duly attested by a banker/notary/consulate official/embassy official.
  • Address proofs

In case the applicant is a PIO or Student then documents like PIO card and valid student visa or College ID card may also be required to open an NRO RD Account.


An NRO RD account can be a great opportunity to invest in a recurring deposit in India while you’re living outside India as an NRI. Your regular deposits will eventually accumulate and on maturity you can use the funds to fulfil your financial goals,