Full formBanking & Finance
NRDstands forNon-Resident Deposit
Full Form of NRD
What is NRD?
Non-Resident Deposit (NRD) refers to a type of bank account or deposit product specifically designed for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to park their foreign earnings in India. In the Indian banking system, NRD accounts are governed by the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India (RBI). They allow NRIs to hold funds in Indian Rupees or foreign currencies, earn interest, and repatriate the balance subject to certain conditions. NRD is often used interchangeably with the more common terms NRE (Non-Resident External) and NRO (Non-Resident Ordinary) deposits, though technically NRD can encompass both, including FCNR (Foreign Currency Non-Resident) deposits. These deposits are widely used by the Indian diaspora to maintain financial ties with India, invest, or support family. The interest rates on NRD accounts are competitive and linked to domestic deposit rates. In banking exams such as those for IBPS or RBI Grade B, questions frequently appear on the features, tax implications, and repatriation rules of NRD, making it an important topic for aspirants. With the growing number of NRIs, NRD accounts have become a key component of India's foreign exchange reserves and banking liquidity.
NRD का फुल फॉर्म
अनिवासी जमा
Example
My father, who works in Dubai, opened an NRD account last year to save his earnings for his retirement in India.
NRD — frequently asked questions
What is the full form of NRD?
The full form of NRD is Non-Resident Deposit, which is a type of bank account or deposit for Non-Resident Indians in India.
What is the difference between NRD and NRE account?
NRD is a broader term that includes both NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts. NRE accounts are rupee-denominated and allow free repatriation of both principal and interest, while NRD generally refers to any deposit held by an NRI.
Are NRD deposits taxable in India?
Interest earned on NRD accounts is subject to Indian income tax. For NRE accounts, interest is tax-free in India, but for NRO accounts, it is taxable. The specific tax treatment depends on the type of NRD deposit.