Non-Resident Indians (NRIs) typically hold two types of Indian bank accounts: NRE (Non-Resident External) and NRO (Non-Resident Ordinary). Each has different tax rules and repatriation rules.
NRE account statements
NRE accounts hold money you earned abroad and converted to rupees. Interest earned is fully tax-free in India. The full balance is freely repatriable to your country of residence. Your NRE statement shows mostly international wire transfers as credits and local spending or transfers as debits. There is no TDS on NRE interest.
NRO account statements
NRO accounts hold income earned in India: rent, dividends, pension, or other India-source income. Interest on NRO accounts is taxable at 30% (plus surcharge and cess), and the bank deducts TDS. Your NRO statement will show TDS deduction entries periodically. Repatriation from NRO accounts is limited to USD 1 million per year after tax compliance.
FEMA compliance
NRI bank statements are subject to FEMA (Foreign Exchange Management Act). RBI can ask for statements to verify that transactions comply with FEMA guidelines. Keep your NRI statements for at least 6 years.
Converting to resident account
When an NRI returns to India permanently, NRE and NRO accounts must be converted to regular resident accounts. The bank will change the account type in its records. After conversion, your statement header will no longer show NRE or NRO designation.
Related reading: How to Download Your Federal Bank Statement, Bank Statement for Income Tax Return, How to Get a Certified Bank Statement.