What happens when you convert a regular account to NRO
An NRO account (Non-Resident Ordinary) is a rupee savings or current account for someone who is not a resident of India for tax purposes. When you convert an existing account to NRO, the bank changes how it classifies your account and what rules apply to deposits and withdrawals—but the account number, branch, and basic structure stay the same.
The main difference is that an NRO account can only hold rupees earned in India (like rental income, pension, or interest on Indian investments). Money you earn abroad cannot go into an NRO account. Withdrawals are also restricted: you can take out rupees freely within India, but moving money out of the country requires Reserve Bank of India (RBI) approval and documentation of where the rupees came from.
Your bank will ask you to provide proof of your non-resident status—usually a valid passport with a visa showing you live abroad, or a work permit, or a lease agreement from your country of residence. The conversion itself takes a few days to a few weeks depending on the bank.
Key Takeaways
- Converting to NRO means your account can only receive rupees earned in India, not foreign income or transfers from abroad.
- You will need to show proof of non-resident status, such as a passport with a foreign visa, work permit, or lease agreement outside India.
- Withdrawals within India are unrestricted, but moving rupees out of India requires RBI approval and proof of the rupees' source.
- The conversion process takes several days to a few weeks and does not change your account number or branch.
- If you earn money abroad, you may need an NRE account instead of NRO, or both accounts running at the same time.
Documents you need to provide for conversion
Banks have slightly different requirements, but most will ask for the same core documents. Bring a valid passport showing your current visa or residency status in another country. If your passport does not show a current visa (for example, if you have a work permit card instead), bring that permit or a lease agreement from your country of residence dated within the last year.
You will also need to fill out a declaration form stating that you are not a resident of India for tax purposes. Some banks call this a "Non-Resident Declaration" or "NRO Account Opening Form." The form asks for your foreign address, the date you left India, and confirmation that your income is earned in India (or from Indian sources like property rental or pension).
Bring your current account statement or passbook to show the account you want to convert. If you are converting an account opened in someone else's name (for example, a joint account where you are the second holder), bring proof of authorization from the primary account holder, or bring them with you to the bank.
How the conversion process works at your bank
Visit the branch where your account is held. Tell the staff you want to convert your account to NRO status. They will give you the conversion form and ask you to fill it out with your current foreign address and the date your non-resident status began. Sign the form in front of the bank staff.
Hand over your documents—passport, visa or work permit, and the declaration form. The bank will make copies and file them with your account. Some banks will ask you to sign a separate undertaking stating that you understand the restrictions on NRO accounts and that you will only deposit rupees earned in India.
The bank will then flag your account in their system as NRO. This usually happens within 2 to 7 business days, though some banks take up to two weeks if they need to verify your documents with their compliance team. You will receive a confirmation letter or email once the conversion is complete. Your account number does not change.
What you can and cannot do with an NRO account
You can deposit rupees into your NRO account if they come from India—rental income from property you own in India, pension payments, interest on fixed deposits, or salary if you work in India part-time. You can also deposit rupees you have already earned and brought with you when you left India.
You cannot deposit foreign currency or foreign income directly into an NRO account. If you receive a wire transfer in US dollars or euros, it will be rejected or the bank will ask you to convert it to rupees at their exchange rate before depositing. You also cannot deposit money that came from abroad, even if it is in rupees.
Withdrawals within India are unrestricted—you can withdraw cash, write checks, or transfer rupees to other Indian accounts as much as you want. But if you want to send rupees out of India (to your foreign bank account, for example), you must show the bank proof that the rupees came from an Indian source. This usually means providing the original deposit receipt, salary slip, rental agreement, or pension letter. The bank will then file a form with the RBI and the transfer may take an additional week or two.
NRO versus NRE: which account type you actually need
An NRE account (Non-Resident External) is for foreign income and foreign currency. If you earn a salary abroad, receive money from a foreign employer, or want to deposit US dollars or euros, you need an NRE account, not NRO. NRE accounts have fewer restrictions on deposits and withdrawals because the money is already foreign.
Many non-residents keep both accounts: an NRO for rupees earned in India (rental income, pension, interest) and an NRE for foreign salary and foreign transfers. This way you do not have to convert currencies or file paperwork every time you move money between accounts.
If you only earn money abroad and have no Indian income, you do not need to convert to NRO at all—open an NRE account instead. If you only earn rupees in India and never send money abroad, NRO is the right choice. Ask your bank which account type fits your situation before you start the conversion.
What happens to your existing transactions and balance
Your current balance stays in the account and is not affected by the conversion. Any standing instructions, automatic bill payments, or recurring deposits you have set up will continue to work after the conversion. The bank does not freeze or reset your account.
However, once the account is flagged as NRO, the bank's system will start rejecting deposits that do not match NRO rules. If someone tries to send you a foreign wire transfer after the conversion, it will bounce back. If you receive a transfer from abroad in rupees (through a money changer or another bank), it may be rejected or flagged for review. This is why you should inform anyone who regularly sends you money that your account is now NRO and can only receive Indian-source rupees.
Withdrawals you made before the conversion are not reversed or questioned. The conversion only affects future deposits and outbound transfers.
Reversing the conversion if you move back to India
If you return to India and become a resident again for tax purposes, you can convert your NRO account back to a regular resident account. Visit your bank branch with your passport showing your return to India (or a new Indian address proof like a utility bill or lease agreement). Fill out a form stating that you are now a resident of India and ask the bank to remove the NRO flag.
The bank will update your account status within a few business days. Once the conversion is complete, you can deposit foreign income and receive foreign transfers again without restriction. Your account number and balance remain unchanged.
Frequently Asked Questions
Can I convert my account to NRO online, or do I have to visit the branch?
Most banks require you to visit the branch in person because they need to verify your passport and visa documents and have you sign the conversion form. Some banks may allow you to upload documents through their app or website, but they will still ask you to come to the branch to sign the declaration form. Call your bank's customer service to ask if they offer online conversion for NRO accounts.
What if my passport visa has expired but I still live abroad?
Bring your expired passport plus your current work permit, residence permit, or lease agreement from your country of residence. The bank needs proof that you currently live outside India, not just that you did at some point. A recent lease agreement or utility bill from your foreign address usually works if your visa has expired.
Can I deposit money from my foreign employer into an NRO account?
No. NRO accounts only accept rupees earned in India. If your employer sends you money in foreign currency or as a foreign wire transfer, it will be rejected by an NRO account. You need an NRE account for foreign income. If you have both accounts, ask your employer to send salary to your NRE account instead.
How long does it take to send money out of India from an NRO account?
Once you provide proof that the rupees came from an Indian source, the bank files the paperwork with the RBI, which usually takes 3 to 7 business days. Some banks process it faster if the amount is small or if you have sent money out before. Large transfers or first-time outbound requests may take up to two weeks.
Do I lose any money or pay a fee when I convert to NRO?
The conversion itself is free at most banks. Your balance does not change. However, some banks charge a higher monthly maintenance fee for NRO accounts than for regular resident accounts, or they may charge a fee each time you send money out of India. Ask your bank about NRO fees before you convert.