Non-resident Indians rely on NRO accounts to deposit money earned in India to comply with regulations. However, these accounts come with minimum balance rules. Failing to maintain the stipulated minimum balance can result in a penalty.
While public sector banks mandate average quarterly balance requirements, some private banks and new-age financial institutions have zero minimum balance NRO accounts. Non-residents should consider their expected account usage, income sources, and ability to maintain large balances.
One should choose reputable providers, not necessarily those offering low or no minimum balance requirements. This guide explores how non-residents can make NRO account management easier with IDFC Bank.
Minimum Balance Requirement for NRO Accounts
Most banks in India require NRO account holders to maintain a minimum average balance (MAB). The MAB can vary depending on the bank and the type of account chosen. Let us explore NRO account minimum balance ranges:
- Basic NRO Savings Account: The minimum balance requirement typically ranges between ₹10,000 and ₹25,000, depending on the bank.
- Premium NRO Accounts: Premium accounts or accounts offering additional benefits may require a higher minimum balance, ranging from ₹50,000 to ₹100,000 or more.
- Zero Balance NRO Accounts: Some banks offer zero-balance NRO accounts for specific customers, such as senior citizens or NRIs with substantial investments in other products.
Failing to maintain the required minimum balance may result in penalties or additional fees, varying across banks.

Factors to Consider Before Opening an NRO Account
This section explores the factors to consider before opening an NRO account:
- Minimum Balance Policy: One should evaluate the policy wording regarding the minimum average balance (MAB) requirement, as failing to meet this can result in penalties.
- Charges and Penalties: If you cannot meet high balance requirements, find banks with lower charges for non-maintenance rather than steep penalties.
- Interest Rates: Balance maintained in NRO accounts can help account holders earn an interest rate of around 3-3.5% per annum.
- Account Features: Check for convenient features like debit cards, internet banking for online transactions, and international remittance through banking partners.
- Bank Reputation: Before opening an NRO account with any bank, consider customer service, accessibility, complaint resolution, transparency, and public perception. This can help one ensure a smooth experience.
One should opt for a bank where they can realistically maintain the needed balance.
Tips for Maintaining the Minimum Balance
Here’s how NRO account holders can try to maintain the minimum account balance:
- Regularly Monitoring Your Balance: Check your account balance frequently through net banking or mobile apps to ensure you meet the quarterly average balance. This can help one top up when required.
- Linking Regular Transactions: Banks allow NRO account holders to set up standing instructions to transfer funds from income sources, such as rent, automatically to their NRO account. This can help one maintain the minimum balance without manual intervention.
- Opting for Zero Balance Accounts: If you only use your NRO account occasionally, choose specialised accounts with no minimum balance criteria.
Staying above the minimum balance mark can save account holders from penalties while letting them seamlessly operate their NRO accounts even from abroad. One should thoroughly evaluate one’s usage and income before deciding on a suitable account.
Conclusion
Opening an NRO account is a crucial banking decision for NRIs. It requires understanding minimum balance rules and evaluating options based on financial needs. By comparing accounts, keeping track of the balance, and making an informed choice, NRO account holders can avoid penalties and enjoy seamless banking services. Careful planning can go a long way in ensuring a hassle-free NRO account management experience.