Tools · Tool 02
Choosing between
NRE, NRO and FCNR(B)
NRE, NRO or FCNR(B). The interest rate is the last question, not the first — this asks where the money came from and where it has to go next.
Where do you stand under FEMA today?
All three accounts are for a person resident outside India. If you are not sure, the status tool asks the four questions the Act asks.
Where did this money come from?
This single question settles most cases.
Where does it have to go next?
Not where it sits today — where you will need it.
Rupees, or the currency you earn in?
Somebody carries the exchange risk. This question decides whether it is you or not.
Where this comes from.
The Foreign Exchange Management (Deposit) Regulations, 2016, as the Reserve Bank sets
them out in its own FAQ,
Accounts
in India by Non-residents (as on 16 January 2025), read with the Master Direction on
Deposits and Accounts and the Remittance of Assets Regulations, 2016. Checked
16 September 2026. This tool answers one question — which account a particular sum may be
credited to — and nothing beyond it. It gives an indication for general information only;
it is not legal, tax or investment advice.
Money that does not fit a box?
Sale proceeds, inherited funds and mixed sources are worth talking through.