NRI/PIO definition: Banking Awareness Special Series

NRI/PIO definition: Person of Indian Origin refers to a foreign citizen who held an Indian Passport at any point in time or whose parents/ grandparents / great grandparents were citizens of India. 

Definition of PIO according to RBI: ‘Person of Indian Origin (PIO) means a citizen of any country other than Bangladesh or Pakistan who has (a) at any time held Indian passport or (b) he or either of his parents or any of his grandparents were a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 or (c) the person is a spouse of an Indian citizen or a person referred to in (a) or (b). 

NRI Accounts: There are different types of bank accounts for Indians or Indian-origin people living outside India. 

 (i) NRO (Non-Resident Ordinary) Accounts: NRO Accounts has two category NRO savings accounts and NRO fixed deposit accounts. When Non-Resident Indian (NRI) deposits money in foreign currency in this account, it is converted into INR (Indian national rupee). NRI can park his money earned in India as well as overseas in NRO bank accounts. The income earned is taxable on this deposit account. 

(ii) NRE (Non- Resident External) Accounts: NRE Accounts has also categories of savings and fixed deposit accounts. Like NRO account, funds are converted in INR at the prevailing exchange rate. In NRE accounts one can park only his earnings from abroad and the funds, both principal and interest earned on it, are transferable. 

(iii) Foreign currency non-resident (FCNR) account: The FCNR account is maintained in foreign currency, not in INR. The funds, the principal, and interest earned from this account are transferable, but the interest in not taxed in India.