Is NRO more flexible from an investment perspective?

Partly correct, but subjected to certain rules

NRO Account – Key Points:

1.    Used for India-sourced income  (rent, dividend, pension, sale proceeds, etc.)
2.    Allows investment in most Indian securities (MFs, equity, bonds, etc.)
3.    Funds are taxable in India

 Repatriation is restricted , not automatic

    Repatriation is restricted, not automatic” – Easy explanation

    Simple meaning:

  Money in an NRO account cannot be freely sent abroad anytime you want. You are allowed to send  it, but  only after following rules and approvals.

What “not automatic” means.

   You cannot just click a button and transfer money abroad like NRE Bank will first check documents, taxes, and limits

    Transfer happens only after approval

    What “restricted” means

     There is a yearly limit (up to USD 1 million per financial year) Indian taxes must be paid first Certain forms are mandatory

Simple Example

    Example 1 – NRE (Automatic)

                 Ravi is an NRI and has ₹10 lakh in NRE account

             ➡ He transfers the full amount to his US bank

             ✔ No tax

             ✔ No forms

             ✔ No approval delay

             ✔ Money goes freely 

              Example 2 – NRO (Restricted, not automatic)

               Ravi receives ₹10 lakh rent in his NRO account

               To send this money abroad:

              1️ He pays Indian tax on rent

              2️ Submits Form 15CA & 15CB

              3️ Bank verifies documents

              4️ Amount must be within USD 1 million limit

          ✔ After approval → money is transferred

         ❌ Without these steps → transfer is not allowed

         That is why NRO repatriation is restricted, not automatic.

         One-line summary

             NRE = free & instant repatriation

            NRO = allowed, but only after rules + documents + approval