Master Circular on NRO Accounts: Key Points for Banks
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/2 · issued 25 Jun 2014 · ~2 min read
Quick answerRBI consolidated NRO account rules into Master Circular No.2/2013-14, effective July 1, 2013, with a one-year sunset clause. It covers eligibility, account types, permissible credits/debits, and remittance of assets for non-residents. Banks must follow FEMA provisions and report quarterly on NRO account openings for Bangladesh nationals.
What changed
This Master Circular consolidates all existing instructions on Non-Resident Ordinary Rupee (NRO) accounts into a single document, replacing earlier circulars. It includes a sunset clause, meaning it will be withdrawn on July 1, 2014, and replaced with an updated version. The circular restates definitions and eligibility criteria, including specific conditions for individuals from Bangladesh and prior RBI approval for Pakistan nationals.
What it means for you
Banks must now refer to this single master circular for NRO account guidelines, simplifying compliance but requiring careful attention to the sunset clause. The circular reinforces that NRO accounts are for bona fide rupee transactions by non-residents, with no violation of FEMA. Banks need to ensure proper KYC and reporting, especially for accounts opened by Bangladesh nationals, and must prepare for the circular's replacement after one year.
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 implement the consolidated NRO account instructions from this master circular immediately.
For NRO account openings by Bangladesh nationals, ensure they hold a valid visa and valid residential permit from FRO/FRRO, and satisfy yourself of these documents.
Prepare for the sunset clause by planning to adopt the updated master circular after July 1, 2014.
Maintain quarterly reporting of NRO account openings for individuals from Bangladesh as per Annex-1.
Train staff on the definitions of NRI and PIO as per FEMA Notification No.5/2000-RB.
Who it affects
All Authorised Dealer Category – I banks, Authorised banks handling NRO accounts, Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs), Bangladesh nationals (subject to conditions) and Pakistan nationals (with prior RBI approval) seeking NRO accounts
❓ Common questions
Regulatory timeline
Stated effective dateeffective July 1, 2013
Decoded by BankPulse2026-06-18 14:59 IST
Status change: withdrawn03 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 be withdrawn on July 1, 2014, and replaced with an updated master circular on NRO accounts.
Can a Bangladesh national open an NRO account without prior RBI approval?
An authorised dealer or authorised bank may allow a Bangladesh national to open an NRO account without prior RBI approval, provided the bank is satisfied that the individual holds a valid visa and a valid residential permit from the Foreigner Registration Office (FRO) or Foreigner Regional Registration Office (FRRO).
What types of NRO accounts are allowed under this circular?
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/2013-14/2
Master Circular No.2 /2013-14
(Updated as June 25, 2014)
July 1, 2013
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 may be referred to for general guidance. The Authorised Dealer Category – I banks and Authorized banks may refer to respective circulars / notifications for detailed information, if so needed.
4. This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 1, 2014 and be replaced with an updated Master Circular on the subject.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager-in-Charge
INDEX
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/2 · issued 25 Jun 2014. 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=8092&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.
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