| Basis | NRE Account | NRO Account |
|---|---|---|
| Acronym | Non Resident External Account | Non Resident Ordinary Account |
| Meaning | It is an account of an NRI to transfer foreign earnings to India | It is an account of an NRI to manage the income earned in India |
| Taxability | Interest earned is tax free | Interest earned is taxable |
| Repatriability | Can repatriate | Can repatriate the interest amount, the principle amount can be repatriated within the set limits |
| Joint Account | Can be opened by two NRIs | Can be opened by an NRI along with an Indian citizen or another NRI |
| Deposits and Withdrawals | Can deposit in foreign currency, and withdraw in Indian currency | Can deposit in foreign as well as Indian currency, and withdraw in Indian currency |
| Exchange Rate Risk | Prone to risk | Not prone to risk |
