When a person attains the status of an NRI, he has to change his bank accounts in India from regular accounts to NRE/NRO accounts. These accounts are also helpful in securing many benefits for an NRI, for example, benefits in the repatriation of funds, exemption from tax etc. Having these accounts are mandatory for an NRI, so if an NRI wants to save his earnings from abroad, he needs to have an NRE account, and if he wants to keep his income generated in India, he needs to have an NRO account.
