What happens when you convert a savings account to NRO at Canara Bank
Converting your Canara Bank savings account to an NRO (Non-Resident Ordinary) account changes how the bank treats your money and what you can do with it. An NRO account is designed for people who are not Indian residents but have income or assets in India — like rent from a property, pension payments, or interest from investments. The conversion itself is straightforward: you fill out a form, provide updated documents showing your non-resident status, and the bank reclassifies your account. Your existing balance stays in the account; nothing is moved or closed.
The main reason to convert is that NRO accounts have different rules than savings accounts. Money earned in India (like rental income) must go into an NRO account by law — you cannot keep it in a regular savings account once you become non-resident. If you do not convert and continue depositing Indian income into a savings account, the bank may freeze it or ask you to move the money. Converting proactively avoids that problem.
Key Takeaways
- You can convert your existing Canara Bank savings account to NRO by visiting your branch with proof of non-resident status, such as a visa, passport showing departure, or employment letter from abroad.
- The bank will ask you to sign an NRO declaration form and provide updated KYC (Know Your Customer) documents, which takes one visit and usually completes within a few days.
- After conversion, money you earn in India — such as rent, pension, or interest — must go into the NRO account, not a regular savings account.
- You can withdraw money from an NRO account freely within India, but sending money out of India requires RBI (Reserve Bank of India) approval and has limits based on the source of the funds.
Documents you need to bring to Canara Bank
Canara Bank will ask for proof that you are no longer an Indian resident. The most common documents are a valid passport with a visa stamp showing you live abroad, an employment letter from your employer outside India on company letterhead with your job title and location, or a residence certificate from the country where you now live. If you recently left India, a copy of your air ticket or exit stamp in your passport also works. The bank wants to see something dated within the last few months — old documents from years ago may not be accepted.
You will also need to update your KYC (Know Your Customer) information. This means providing your current address abroad, phone number, and email. Bring your passport (the original, not a copy) and one proof of your foreign address — a utility bill, rental agreement, or bank statement from your country of residence. If you do not have a foreign address yet (for example, if you are moving soon), ask the bank whether you can use a temporary address or a contact person's address in India while you settle.
Have your account number and a recent statement ready. The bank may also ask for your PAN (Permanent Account Number) if you have one, though this is not always required for NRO conversion.
The step-by-step process at your Canara Bank branch
Start by visiting the branch where your savings account is held. Tell the staff you want to convert your account to NRO. They will give you the NRO Declaration Form — this is a one-page document where you declare that you are a non-resident and understand the rules of an NRO account. Read it carefully before signing; it confirms that you know money earned in India must go into this account and that you understand the limits on sending money abroad.
Hand over your documents: passport, proof of non-resident status, proof of foreign address, and updated contact details. The staff will photocopy these and attach them to your form. They will also ask you to sign a few other standard forms — these are routine KYC updates and account modification forms. The whole process usually takes 20 to 30 minutes.
Ask the bank when the conversion will be complete. Most Canara Bank branches finish the conversion within two to three working days. Some branches do it the same day if the documents are clear and the staff are not busy. Once it is done, your account statement will show "NRO" next to your account type, and you will receive a confirmation letter by post or email.
What changes about how you use your account
After conversion, you can still withdraw money from your NRO account in India the same way you did before — using your debit card, cheques, or visiting the branch. Deposits also work the same way. The main change is what money you are allowed to deposit. Any income you earn in India — rent from a property, salary from an Indian employer, pension from an Indian source, or interest from Indian investments — must go into the NRO account. You cannot put this money into a regular savings account.
Money you earned before you left India and brought with you, or money sent to you from abroad by family or friends, can go into either an NRO account or a separate NRE (Non-Resident External) account. NRE accounts have more relaxed rules for sending money out of India, so some people keep both. Ask your bank whether opening an NRE account makes sense for your situation.
Interest rates on NRO accounts are usually the same as savings accounts, though this varies by bank and changes over time. Check with Canara Bank what rate they are currently offering.
Sending money out of India from an NRO account
If you want to send money from your NRO account to your bank account abroad, the process is more complicated than a regular transfer. The Reserve Bank of India (RBI) allows you to send money out, but the amount and the rules depend on where the money came from. Money earned in India (like rent) can be sent out, but there are annual limits and you may need to show proof of the income source. Money you brought from abroad can usually be sent out more freely.
To send money, you will need to contact your Canara Bank branch and ask for a Demand Draft or Wire Transfer to your foreign bank account. The bank will ask you to fill out a form stating where the money came from and why you are sending it. For rental income, you may need to show a rental agreement or property tax receipt. For pension, you may need a pension statement. The bank will then process the transfer, which usually takes five to ten working days.
There is no single limit that applies to everyone — it depends on the source of your funds and the RBI rules at the time. Ask Canara Bank directly what limit applies to your situation, as this changes and varies by case.
If you have money in the account before conversion
Your existing balance does not have to move or be touched. It stays in the account during and after conversion. However, understand that once the account is NRO, the rules explore to all money in it going forward. If you had a large balance before you left India, that money is now in an NRO account, and the same rules about sending it abroad explore — you may need to show where it came from.
If you want to keep some of that money separate and easier to send abroad, you could withdraw it before conversion and redeposit it into an NRE account after conversion. Talk to your bank about whether this makes sense for your situation. Do not move large amounts without understanding the tax and reporting rules first.
Frequently Asked Questions
Can I convert my account online or by mail, or do I have to visit the branch?
Most Canara Bank branches require you to visit in person because they need to see your original passport and verify your signature on the NRO declaration form. Some branches may allow you to start the process online, but you will still need to visit to complete it. Call your branch first to ask whether they offer any remote options.
What if I move back to India — can I convert the NRO account back to a savings account?
Yes. Once you return to India and regain resident status, you can visit your branch and ask to convert the NRO account back to a regular savings account. You will need to show proof of your return, such as a new address in India and updated KYC documents. The process is similar to the original conversion.
Do I need to close my old savings account before converting, or does conversion happen automatically?
Conversion happens to the same account — you do not close it and open a new one. The bank changes the account type from savings to NRO while keeping the same account number, balance, and history. You will keep the same debit card and cheque book (though the bank may issue new ones with updated information).
What happens if I deposit Indian income into the account before it is converted to NRO?
The bank may flag this or ask you to convert the account. It is better to convert first, before you start depositing Indian income. If you have already deposited income into a savings account, contact your branch and explain the situation — they can usually help you convert retroactively without penalty.
Is there a fee to convert my account to NRO?
Canara Bank does not charge a conversion fee, but confirm this with your branch when you visit. Some banks charge a small fee for account modification or KYC updates, though most do not. Ask before you start the process so there are no surprises.