How to Open an NRO Account Without a PAN Card: A Complete Guide

Introduction

An NRO (Non-Resident Ordinary) account is a vital banking tool for Non-Resident Indians (NRIs) who wish to manage their income earned in India, such as rent, dividends, pensions, or any other income from India. While a PAN (Permanent Account Number) card is often required for financial transactions in India, it’s still possible to open an NRO account without a PAN card. In this article, we’ll explore how NRIs can open an NRO account without a PAN card, the process involved, and the limitations to be aware of.

What Is an NRO Account?

An NRO account allows NRIs to manage and deposit income earned in India, such as:

• Rental income
• Dividends from shares
• Pension payments
• Income from other sources within India

It also enables NRIs to hold and manage their savings in India in either Indian or foreign currency. Unlike an NRE (Non-Resident External) account, which focuses on foreign earnings, an NRO account is designed to handle local earnings.

Can You Open an NRO Account Without a PAN Card?

Yes, it is possible to open an NRO account without a PAN card, but there are some important considerations:

1. Use of Form 60: If you don’t have a PAN card, banks will allow you to submit Form 60 instead. Form 60 is a declaration form used by individuals who do not have a PAN card but need to perform certain financial transactions.
2. Limited Services: While you can open an NRO account without a PAN card, there may be limitations on certain services, including:
   • No TDS (Tax Deducted at Source) exemption: Without a PAN card, the bank will deduct TDS at the highest applicable rate (usually 30%).
   • Difficulty in larger transactions: Transactions over ₹50,000 might face challenges or delays due to the absence of a PAN card.
   • Restrictions on investments: You may not be able to use the NRO account for making investments in shares or mutual funds until a PAN card is provided.

Documents Required to Open an NRO Account Without a PAN Card

Here are the key documents needed to open an NRO account without a PAN card:

1. Passport: A valid passport is mandatory for identity verification.
2. Visa/Work Permit: Proof of NRI status, such as a valid visa, work permit, or resident permit of the foreign country.
3. Address Proof: Proof of address in the country of residence, such as utility bills, bank statements, or foreign driving licenses.
4. Form 60: In place of the PAN card, submit Form 60 to the bank, which declares that you don’t have a PAN card.
5. Passport-sized Photographs: Two recent passport-sized photographs for account opening.

Steps to Open an NRO Account Without a PAN Card

1. Choose Your Bank
   Select a bank in India that offers NRO account services. Popular banks like HDFC, ICICI, SBI, and others allow NRO accounts to be opened without a PAN card by accepting Form 60.

2. Submit the Account Opening Form
   Complete the NRO account opening form, either online or at the bank’s branch.

3. Submit Required Documents
   Provide the necessary documents, including a passport, visa, overseas address proof, and Form 60.

4. Verification
   The bank will verify the documents provided. Once the verification process is completed, your NRO account will be opened.

5. Start Transactions
   Once the account is activated, you can start depositing your Indian income into the NRO account. However, be aware of the limitations, especially the higher TDS rate without a PAN card.

How to Obtain a PAN Card After Opening an NRO Account

To avoid the higher TDS rates and other limitations, it’s advisable to apply for a PAN card after opening your NRO account. Here’s a quick guide on how to get a PAN card as an NRI:

• Visit the official websites like NSDL or UTIITSL.
• Fill out Form 49AA for NRIs and upload the required documents.
• After successful verification, the PAN card will be dispatched to your address, allowing you to update it with your bank.

Conclusion

Opening an NRO account without a PAN card is possible through the submission of Form 60, but there are several limitations, such as higher TDS deductions and restricted financial services. To fully optimize the use of your NRO account, it’s best to apply for a PAN card after opening the account. This will help you manage your Indian earnings efficiently while avoiding unnecessary tax deductions.

If you want to apply NRI PAN card, apply through this link https://idserve.in/