Can I use a non-resident bank account for loan payments?
An NRO account can be used as a savings account to manage the income earned in India by an NRI in Indian currency.
When I convert my ICICI Bank savings account into NRO (non-resident ordinary) and NRE (non-resident external) accounts, what will happen to my existing funds? Will that move into the NRE or NRO account? From which account will my ongoing loan payments be deducted? If it is going to be through NRO account, then do I need to transfer funds from NRE to NRO account every month? Will there be any tax deduction on this? Do I need to do any paperwork with ICICI Bank and my loan provider HDFC Bank?