What is an NRE and NRO account?

An NRE (Non-Resident External) account is a bank account for NRIs to deposit foreign earnings in India. It is maintained in Indian Rupees, and both principal and interest are fully repatriable and tax-free in India. 

An NRO (Non-Resident Ordinary) account is used to manage income earned in India, such as rent or dividends. It is also held in Indian Rupees, but the interest is taxable, and repatriation is limited to $1 million per financial year with proper documentation.