New Delhi, Aug. 13 -- NRE, NRO and FCNR accounts are designed to help non-resident Indians manage income earned abroad, maintain funds in India and hold foreign currency deposits, respectively. While all three are popular banking options for NRIs, they serve different purposes, hence, comes with different tax rules.

FCNR deposits have been making headlines recently after the government unveiled a special foreign-currency deposit window for NRIs. Under the scheme announced in June, non-resident Indians can place leveraged and unlevered deposits with Indian banks in foreign currency while the Reserve Bank of India (RBI) takes the hedging risk. This facility is aimed at attracting overseas funds and will remain available until the end of Se...