Q. With reference to the NRE, NRO & FCNR accounts, consider the following statements:

1. NRE account is owned by NRIs to manage their income earned in India
2. NRO account is owned by NRIs for transferring their foreign earnings to India
3. FCNR is a type of fixed deposit account

Which of the above is / are correct statements?
Answer: Only 3
Notes: NRE (Non-Resident External) Account allows NRIs to transfer foreign earnings to India, deposited in foreign currency and withdrawn as INR. NRO (Non-Resident Ordinary) Account is for managing income earned in India, with deposits in INR or foreign currency. FCNR (Foreign Currency Non-Resident) Account is a fixed deposit account for NRIs to save earnings in foreign currency.

This question is part of UPSC Daily 20 MCQ Series Course on GKToday Android app.