New Delhi, June 1 -- A NRO (non-resident ordinary) account serves as a convenient way for people living abroad to manage income earned in India such as rent, dividends or pension. However, once a non-resident Indian (NRI) permanently returns to India and regains resident status under foreign exchange regulations, continuing to hold a bank account meant for non-residents is no longer permitted.

Such residents are required to inform their bank about their change in residential status and convert their NRO account into a regular resident savings account. The process is quite simple but involves submitting specific documents and completing the bank's formalities. According to an expert who spoke to Mint, failing to update the account status ...