What is a Karnataka Bank NRO Account?

A Karnataka Bank NRO Account is a Non-Resident Ordinary Account that allows Non-Resident Indians to manage their income earned in India, such as rental or pension income.

Who can open a Karnataka Bank NRO Account?

Any Non-Resident Indian (NRI) can open a Karnataka Bank NRO Account to manage their earnings in India.

What are the features of the Karnataka Bank NRO Account?

The account provides 24/7 internet banking, joint holding with residents, nomination facilities, and allows repatriation of funds up to 1 million USD per fiscal year.

Is there a minimum balance requirement for the NRO Account?

Yes, the minimum monthly balance required for a Karnataka Bank NRO Account is Rs. 1,000.

How is the interest on the Karnataka Bank NRO Account calculated?

Interest on the NRO account is based on the daily balance and is fully taxable in India.

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Karnataka Bank NRO Account

A Karnataka Bank NRO Account is designed for NRIs to manage their income earned in India, such as rent, dividends, or pension. It allows seamless deposit of Indian earnings in INR and provides easy repatriation of funds, subject to RBI limits. With competitive interest rates, robust online banking, and multiple account options, it is an ideal solution for NRIs to handle Indian income conveniently.

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What is Karnataka Bank NRO Account?

A Karnataka Bank NRO Account is a Non-Resident Ordinary Account designed for NRIs (Non-Resident Indians) to manage their income earned in India, such as rent, dividends, or pension. It allows easy repatriation of funds and provides facilities like cheque book, internet banking, and ATM access. The account can be opened in INR and offers various options, such as savings, current, and fixed deposit types. Interest earned on the account is subject to tax in India, but the principal is repatriable, allowing flexibility for NRIs in managing their finances both in India and abroad.

Types of Karnataka Bank NRO Account

Karnataka Bank NRO Savings Deposit Account
- Securely manage rental income, dividends, and pensions while living abroad.
- Repatriate current income like rent or dividends with ease, subject to necessary certifications.
- Share financial responsibilities with family in India by opening a joint account with resident Indians.
- Use the account to manage funds for local payments and investments within India.
Karnataka Bank NRO Fixed Deposit Account
- Enjoy secure investments with the added advantage of tax-free interest on your savings in India.
- Transfer funds freely between India and abroad, providing maximum flexibility in managing global finances.
- Opt for a joint account with other NRIs or resident relatives to share benefits and stay connected with family.
- Perfect for NRIs working overseas, involved in business or academia, or even seafarers, offering a tailored investment solution.
Karnataka Bank NRO Current Account
- Ideal for NRIs earning through businesses, rentals, dividends, or other Indian income sources.
- Repatriate income like rent and pensions after meeting specified conditions, bridging your Indian and global finances.
- Use the account for local transactions and investments on a non-repatriation basis.
- Manage transactions in multiple currencies, supporting your global financial activities.
- Access personalized assistance through dedicated NRI customer support.
- Open jointly with resident Indians, enabling family financial integration.
Karnataka Bank NRO Recurring Deposit Account
- Save regularly to build a strong financial future, which is perfect for NRIs with commitments in India.
- Use the deposit for local payments and investments, ensuring flexibility for your Indian financial needs.
- Open the account jointly with Resident Indians, fostering family financial collaboration.
- Interest earned is subject to tax, reflecting compliance and transparency.
- A stable and convenient way to stay connected with India while securing your financial goals.

Karnataka Bank NRO Savings Account Interest Rates

End-of-Day Balance (₹)	Interest Rate (% p.a.)
Up to ₹1 lakh	2.75%
Above ₹1 lakh up to ₹10 lakh	2.75%
Above ₹10 lakh up to ₹50 lakh	2.75%
₹50 lakh up to ₹1 crore	3.50%
Above ₹1 crore	4.00%

Karnataka Bank NRO Term Deposit Account Interest Rates ~w.e.f. 2 January 2025

Non-Callable Term Deposits

Maturity Period	Interest Rate (% p.a.) (₹2Cr - < ₹3Cr)	Interest Rate (% p.a.) (₹3Cr - ₹5Cr)	Interest Rate (% p.a.) (₹5Cr - ₹10Cr)
1 to 2 years	7.50%	7.50%	7.50%
375 days	7.75%	7.75%	-
> 2 years to 3 years	6.75%	6.75%	6.75%

Callable Term Deposits

Maturity Period	Below ₹3Cr	₹3Cr - ₹5Cr	₹5Cr - ₹10Cr
7 Days to 45 Days	3.50%	3.50%	3.50%
46 Days to 90 Days	4.00%	4.00%	6.00%
91 Days to 179 Days	5.25%	5.25%	6.25%
180 Days to < 1 Year	6.25%	6.25%	6.25%
1 Year to 2 Years	7.25%	7.25%	7.25%
375 Days (FD & ACC)	7.50%	7.50%	-
Above 2 Years to 3 Years	6.50%	6.50%	6.50%
Above 3 Years to 5 Years	6.50%	6.50%	6.50%
Above 5 Years to 10 Years	5.80%	5.80%	5.80%

Eligible Individuals for Karnataka Bank NRO Account

NRIs (Non-Resident Indians): Engaged in jobs or businesses abroad or running a business outside India.
Diplomatic Assignments: Individuals living abroad for an unspecified period, including those on diplomatic missions or working with international organizations.
Indian students: Pursuing higher education outside India.
Seafarers & maritime professionals: Indian nationals working at sea.
Persons of Indian Origin (PIOs)/Overseas Citizens of India (OCIs):
- Holding a foreign passport (excluding Bangladesh or Pakistan) with Indian roots.
- Foreigner married to Indian citizen.
- Citizens of India under the Constitution or Citizenship Act, 1955.
- Individuals with parents or grandparents who were Indian citizens.

Documents Required to Open Karnataka Bank NRO Account

Required Documents to Open Account:
- Valid Indian Passport or Overseas Resident Card
- Valid Employment Visa/Work Permit/Student Visa/Overseas Resident Card
- Proof of communication address
- PAN Card or Form 60
Off-Site Verification:
- Attested photocopies of the documents can be submitted for NRIs unable to visit a branch in India.
Authorized Attestation Sources:
- Overseas branches of Scheduled Commercial Banks registered in India
- Branches of overseas banks with Indian bank relationships
- Notary Publics, Court Magistrates, Judges
- Indian Embassy/Consulate officials in the country of residence

Benefits of Opening a Karnataka Bank NRO Account

The key benefits offered by a Karnataka Bank NRO Account are listed below:

Manage Indian Income: Easily manage Indian income like rent, dividends, and pensions.
Easy Access: 24/7 access to your account via internet banking and ATMs across India.
Interest Earnings: Earn interest on your NRO account balance, though interest is subject to a 30% Tax Deducted at Source (TDS).
Repatriation Limits: Repatriate up to USD 1 million annually, subject to tax payments.
Joint Accounts Allowed: Open the account jointly with resident Indians or other NRIs for family financial management.
Power of Attorney: Authorize a close relative to operate the account on your behalf when abroad.
Nomination Facility: Nominate beneficiaries to ensure funds are managed as per your wishes.
Low Minimum Balance: Maintain a minimum monthly balance as low as INR 1,000.
Tax Benefits under DTAA: Avail of reduced tax rates on interest earned through the Double Taxation Avoidance Agreement (DTAA).

Conclusion

A Karnataka Bank NRO Account is an excellent choice for conveniently managing your Indian income while living abroad. It offers features like attractive interest rates, easy fund transfers, and tax-compliant savings. With seamless online banking and dedicated customer support, it ensures a hassle-free banking experience. Opting for a Karnataka Bank NRO Account is a smart way to handle your finances in India securely and efficiently.

FAQs

What is a Karnataka Bank NRO Account?

A Karnataka Bank NRO Account is a Non-Resident Ordinary Account that allows Non-Resident Indians to manage their income earned in India, such as rental or pension income.
Who can open a Karnataka Bank NRO Account?

Any Non-Resident Indian (NRI) can open a Karnataka Bank NRO Account to manage their earnings in India.
What are the features of the Karnataka Bank NRO Account?

The account provides 24/7 internet banking, joint holding with residents, nomination facilities, and allows repatriation of funds up to 1 million USD per fiscal year.
Is there a minimum balance requirement for the NRO Account?

Yes, the minimum monthly balance required for a Karnataka Bank NRO Account is Rs. 1,000.
How is the interest on the Karnataka Bank NRO Account calculated?

Interest on the NRO account is based on the daily balance and is fully taxable in India.

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#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).