Can I transfer funds from NRE to NRO account?
SBNRI Team
answered on 23/03/2020
Yes. An NRE account allows you to transfer funds to another NRE account as well as to an NRO account. The NRE account can be opened for the purpose of maintaining the income earned outside India with tax free interest (upto 7.25%*) on Fixed Deposits. Both the principal amount and interest earned are completely repatriable from India.
Also Read: NRE to NRO Fund Transfer
What are the different types of NRI Banking Accounts?
Types of NRI Accounts | ||||
| Factors to consider | Non Resident External (NRE) Account | Non Resident Ordinary (NRO) Account | Foreign Currency Non Resident (FCNR) Account | |
| Purpose | For income earned outside India | For income earned from India (pension, rent etc.) | Foreign Currency Investment in India | |
| Currency | INR | INR | USD, GBP, EUR, JPY, CAD, AUD, SGD, HKD and CHF | |
| Tenure of Deposits | 1 year to 10 years | 7 days to 10 years | 1 year to 5 years | |
| Interest | Up to 6.80%* | Up to 7.30%* | Up to 4.05%* | |
Repatriation (transfer of money from Indian bank account to foreign bank account) | Both Principal (money invested initially) and Interest completely repatriable | Up to a maximum of 1 million USD per financial year | Both Principal and Interest completely repatriable | |
| Tax Deductions | No tax | Tax on Interest earned (not on principal amount): 30% tax + surcharge + education cess will be deducted at the source of interest earned in India | No tax | |
Transfer of funds from NRE to NRO Account
The different types of NRI Banking Accounts operate differently, you can transfer funds from NRE to NRO Account and other transactions can be carried out between these accounts. To know about the process of opening an NRE Banking account, click here.
Also Watch: Best NRI Bank Account to understand the benefits of every NRI Banking Account variant.
Related Questions
SBNRI Team
answered on 23/03/2020
There are multiple options to send money to India from UK. Refer the table below and choose the best suited medium for yourself. Send money to India from UK: *Money Transfer Operators: Money transfer operators (MTOs) are financial companies (but usually not banks) engaged in cross border transfer of funds using either their internal […]
SBNRI Team
answered on 23/03/2020
There are multiple options to send money from USA to India. Refer the table below and choose the best suited medium for yourself. *Money Transfer Operators: Money transfer operators (MTOs) are financial companies (but usually not banks) engaged in cross border transfer of funds using either their internal system or using their collaborations […]
SBNRI Team
answered on 22/03/2020
There are no charges of remittance to India. However, you can be charged as per the following factors: Platform chosen for remittance Speed of Medium chosen for remittance Explanation w.r.t charges of remittance to India: If you send money from US to India for example, through any banking network such as Citibank, there are […]
SBNRI Team
answered on 24/03/2020
There are multiple options to send money from UK to India. Refer the table below for the time taken to send money from UK to India and choose the best suited medium for yourself. *Money Transfer Operators: Money transfer operators (MTOs) are financial companies (but usually not banks) engaged in cross border transfer of […]
