New Delhi, June 8 -- NRE accounts are a type of bank account available to Non-Resident Indians (NRIs) for parking income earned outside India. Funds in a non-resident external account are maintained in Indian rupees and can be freely repatriated abroad, subject to current regulations.

Deposits in these accounts are made in foreign currency and converted to Indian rupees, while withdrawals are in INR. These accounts can be in the form of savings, current, recurring, or fixed deposits. The purpose of holding a NRE account is to save, invest, and manage family expenses in India.

NRE accounts differ from non-resident ordinary (NRO) accounts in terms of the source of funds and their intended use. While NRE accounts are meant for foreign inco...