NRO Fixed Deposit

Are you looking for an attractive investment scheme to park your funds with assured higher returns. Then Federal Fixed Deposit scheme is a right option for you to invest your hard earned money and get periodical income by way of interest


All types of accounts like current, savings, fixed deposits and recurring deposits are permitted under the scheme.
Advance to the extent of 90% of the deposit can be availed at a rate of interest of over 2% above the deposit rate plus interest tax.
Income Tax @ 30.00% +3 % Education Cess (total 30.90%) will be deducted at source by the Bank on interest earned/paid in NRO accounts irrespective of the amount of Interest if the Tax Residency Certificate(TRC) and  PAN number are not submitted to the Bank. If the TRC and PAN number are updated, tax will be deducted as per the DTAA rates.
Balance under NRO accounts can be repatriated outside India for any bonafide purpose.
Interest accrued on NRO account net of tax deducted at source can be credited to NRE account or repatriated outside India as and when required.
Premature withdrawal allowed, interest will be paid for the completed period at applicable rate operative on the date of opening. 

DTAA Benefits

Double Taxation Avoidance Agreement (DTAA) is an agreement entered by India with various countries- (Click here for the list of DTAA countries) Under the current DTAA provisions, you can enjoy concessional rate of Tax Deducted at Source (TDS), providing a higher yield as compared to the regular NRO FD offered today.

Please note that as per recent amendment to Section 90(2) of the Income Tax Act 1961 (Act) non residents have to provide "Tax Residency Certificate (TRC)" containing prescribed details issued by government authority of respective country in which they reside to avail benefit of reduced tax under Double Taxation Avoidance Agreement (DTAA). CBDT has prescribed the contents of TRC vide notification no. 39 dated September 17, 2012. Accordingly, all nonresident customers who wish to avail benefit of DTAA rates for their interest earned on NRO Deposits  have to mandatorily provide the " Tax Residency Certificate (TRC) " containing prescribed details to the bank. Please note that DTAA benefits cannot be given if TRC is not submitted.

You may download the file containing set of contents of TRC which may be provided to your tax/government authority to obtain a TRC.

List contents required in Tax Residency Certificate 

Disclaimer:  Please note that contents of TRC are specified for your convenience so that you do not miss out any contents to be prescribed on the TRC. You should check in your country if there is any format of TRC issued or whether the format includes all the contents listed.

In case you have already submitted documents to avail of DTTA benefit or want to avail DTAA for the FY 2022-23, you are requested to provide latest TRC, Form 10F and PAN copy to avail DTAA benefit for the financial year 2022-23, falling which bank will deduct TDS on your NRO accounts at below mentioned rates  which cannot be refunded .

  • If total payment for the FY is below 50 L- TDS rate will be 31.20 %
  • Otherwise TDS rate will be 30 % + surcharge (as per Income tax Act)+ 4% cess

It may also note that , the validity of TRC should cover the entire Financial year, if not, additional TRC covering the remaining period shall be submitted. 


  • NRO accounts can be opened by all non residents. 
  • Any foreign national or entities (except of Pakistani/Bangladesh nationality/ownership) can open such accounts.
  • Joint accounts with other non residents or residents permitted.

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