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Master Circular on NRO Accounts (2011-12)

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2011-12/6 · issued 29 May 2012 · ~2 min read

Quick answerRBI consolidated all NRO account rules into one Master Circular (No.6/2011-12) effective July 1, 2011, with a one-year sunset clause. It covers eligibility, account types, permissible credits/debits, and operational guidelines for authorised dealers. The circular was withdrawn on July 1, 2012.

What changed

RBI issued a Master Circular consolidating all existing instructions on Non-Resident Ordinary Rupee (NRO) accounts into a single document. The circular included a sunset clause, making it valid only until July 1, 2012, after which it would be replaced by an updated version.

What it means for you

Banks must ensure NRO account operations comply with the consolidated instructions, including definitions of NRI and PIO, permissible transactions, and joint account rules. The sunset clause requires banks to stay updated with the next circular after July 1, 2012. This circular does not introduce new rules but simplifies reference for compliance.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Review and update internal NRO account policies to align with the consolidated instructions in this Master Circular.
Ensure staff are trained on the definitions of NRI and PIO as per FEMA Notification No.5/2000.
Monitor the sunset date (July 1, 2012) and prepare to implement the replacement circular.
Verify that all NRO account openings and transactions adhere to the permissible credits/debits listed in the circular.

Who it affects

All Authorised Dealer Category – I banks, Authorised banks handling NRO accounts

❓ Common questions

Regulatory timeline

Stated effective date effective July 1, 2011
Decoded by BankPulse 2026-06-19 00:59 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the sunset clause in this Master Circular?

The circular includes a sunset clause of one year, meaning it will stand withdrawn on July 1, 2012, and be replaced by an updated Master Circular on NRO accounts.

Who is eligible to open an NRO account under this circular?

Any person resident outside India, as per FEMA, can open an NRO account with an authorised dealer or bank for bonafide rupee transactions. However, individuals/entities from Bangladesh or Pakistan require prior RBI approval.

What types of NRO accounts are allowed?

NRO accounts can be opened as current, savings, recurring, or fixed deposit accounts, with interest rates and operational guidelines as per RBI directives.

📜 Read the original circular — full text as issued by RBI

RBI/2011-12/6
 Master Circular No.6/2011-12 
 (Updated as on May 29, 2012) 
 July 01, 2011 
 To,
 All Authorised Dealer Category – I banks and Authorised banks
 Madam / Sir,
 Master Circular on Non-Resident Ordinary Rupee (NRO) Account 
 The acceptance of deposits by an Authorised Dealer / Authorised bank from persons resident outside India are regulated by the provisions of sub-sections (1) and (2) of section 6 of the Foreign Exchange Management Act, 1999 read with FEMA Notification No.5/2000 RB dated May 3, 2000 , as amended from time to time.
 2. This Master Circular consolidates the existing instructions on the subject of “Non-Resident Ordinary Rupee (NRO) Account” at one place. The list of underlying circulars/notifications consolidated in this Master Circular is furnished in the Appendix.
 3. This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 1, 2012 and be replaced with an updated Master Circular on the subject.
 Yours faithfully,
 (Meena Hemchandra)
 Chief General Manager-in-Charge 
 INDEX 
 1

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/6 · issued 29 May 2012. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6498&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.