NRIs and PIOs can open bank accounts in India. Certain co-operative banks, commercial banks having authorised licenses by Reserve Bank of India are allowed to deal in foreign currency and open accounts in the names of NRIs and PIOs.
Bank accounts can be maintained by NRIs and PIOs in rupees as well as in foreign currency. There are four types of rupee accounts for NRIs and PIOs.

• Non resident (external) Rupee accounts (NRE accounts)- Balances held in NRE accounts can be repatriated abroad freely.
• Ordinary Non-resident Rupee Account (NRO account)- Funds in NRO accounts can only be used for local payment in rupees not for remittance abroad.
• Non-resident (Non-repatriable) Rupee Deposit accounts (NRNR accounts)- NRIs can open NRNR accounts from their existing NRE/FCNR deposit accounts through normal banking channel in freely convertible currency.
• Non-Resident (Special) Rupee Accounts with banks in India- This account will have the same facilities and restrictions as are applicable to rupee accounts maintained in India by residents relating to repatriation of funds held in these accounts and/or income/interest earned on them.

Loans against fixed deposit accounts
NRIs and PIOs holding NRO and NRE accounts are eligible for loans/overdrafts against their fixed deposits. However, loans can not be taken for the purpose of re-lending, carrying on agricultural/plantation activities or for investments in real estate business. Funds from loans and overdrafts can be utilised by the NRIs and PIOs for investments in India on non-repatriation basis and for acquisition of immovable property in India.

Foreign Currency accounts
NRIs and PIOs can maintain FCNR accounts in India. These accounts are unlike savings and current accounts and can only be kept in the form of 'term deposits' i.e. a deposit kept for fixed periods ranging from 6 months to 3 years. Funds in such accounts can be repatriated abroad.