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Differences Between NRE and NRO Demat Accounts

NRE (Non-Resident External) and NRO (Non-Resident Ordinary) demat accounts are meant for NRIs but differ in purpose and fund handling. An NRE demat account is used to invest repatriable fundsu2014meaning profits and principal can be transferred abroadu2014and is linked to an NRE bank account. In contrast, an NRO demat account holds investments made with non-repatriable domestic income, such as rent or dividends earned in India, and repatriation from it is subject to limits and taxation.

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Differences Between NRE and NRO Demat Accounts

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