If you’re an NRI (Non-Resident Indian) with bank accounts in India, you might need to transfer funds from your NRO (Non-Resident Ordinary) account to your NRE (Non-Resident External) account for various reasons, such as investment opportunities, repatriation of funds, or to consolidate your finances. HDFC Bank is one of the leading banks in India, offering ease of NRO to NRE transfer funds transfer. In this blog, we’ll guide you through the step-by-step process of NRO to NRE Transfer HDFC Bank and the documents required for it.
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What is HDFC NRO and NRE Bank Account?
Before initiating the fund transfer, it’s essential to have a clear understanding of the key differences between NRO and NRE accounts:
- HDFC NRO Account: An NRO account is a rupee-denominated account where you can deposit your Indian earnings. The funds in this account are non-repatriable, meaning you can’t transfer them abroad without certain limitations.
- HDFC NRE Account: An NRE account is also a rupee-denominated account, but it allows you to hold and manage foreign income earned outside of India. The funds in this account are fully repatriable, which means you can transfer them overseas without any restrictions.
Also read: HDFC NRO vs NRE Account: Which One Should I Open?
How to transfer money to NRE account? How to transfer money to NRE account from USA? These are some of the most common questions for NRIs looking for a smooth transfer of funds from their NRO to NRE bank accounts. So, here’s a step-by-step process of transferring funds from your NRO to NRE transfer HDFC Bank.
Step-by-Step Process of NRO to NRE Transfer HDFC Bank Funds
- Log in to your HDFC Bank Internet Banking account.
- Navigate to the ‘Payments and Transfers’ section and click on ‘Funds Transfer.’
- Select the option ‘Transfer funds to an Overseas account from NRO Account.’
- Choose ‘Repatriation from NRO SB via Wire transfer.’
- Select the remitter account, beneficiary account, and the desired amount to be transferred to initiate the transaction.
- Specify the source of funds and the corresponding amounts from each source to be remitted.
- Upload relevant supporting documents.
By following these steps, you can easily transfer funds to your NRE Account or an overseas account.
Also read: NRE to NRO Fund Transfer: Ultimate Guide 2024
Documents Required for HDFC NRO to NRE Fund Transfer
List of the documents needed for transferring funds from NRO to NRE funds transfer HDFC Bank, as specified by HDFC Bank:
- A signed cheque for the transfer of funds from NRO to NRE account.
- FEMA declaration.
- Documentary evidence of the source of funds.
- Form 15CA and 15CB.
Note: You need to submit form 15CA and 15CB while remitting funds from your NRO to NRE bank account. Form 15CB shows the source of your funds to comply with the regulations and can be obtained from the chartered accountant.
What is Form 15CA and 15CB for NRIs?
According to the Income Tax Act, any payments made by a resident to a non-resident must be disclosed. The purpose behind tax deduction at source and subsequent reporting is to ensure timely tax collection. Form 15CA serves as a declaration filed by the individual remitting the money, affirming that the payments made to the non-resident have been appropriately taxed.
On the other hand, Form 15CB is not a declaration but a certificate issued by a Chartered Accountant. This certificate guarantees that the provisions of the Double Taxation Avoidance Agreement (DTAA) and the Income Tax Act have been duly adhered to concerning tax deductions while making the payments.
Receiver for Outward Remittance from HDFC NRO Account
You can transfer funds from HDFC NRO account to the following options:
- Your HDFC NRE Account with the same Customer ID (select from the dropdown menu).
- Any other NRE Account with HDFC Bank under a different Customer ID (add such NRE Accounts by selecting Add Receiver).
- An Overseas Account.
Limit on Transfer of Funds from HDFC NRO to NRE Bank Account
The limit on transfer of funds from HDFC NRO bank account through Internet Banking is as follows:
- Up to USD 25,000 (twenty-five thousand) or equivalent per transaction.
- Up to USD 1,000,000 (one million) or equivalent per financial year.
Note that funds in NRO accounts are not freely repatriable. Furthermore, the interest earned on NRO accounts is taxable in India at a rate of 30%, including surcharge and education cess.
Charges on Transfer of Funds from HDFC NRO to NRE Bank Account
HDFC Bank charges no fee for the online transfer of funds from an NRO account to an NRE account.
Permissible Sources of Funds for Online Transfer from NRO Account
The following sources of funds are eligible for online transfer:
- Dividend Income
- Gift from Close Relative
- Income Tax Refund
- Insurance Policy Claim or Maturity Proceeds
- Interest (Earned on NRO Account)
- Interest on Other Securities
- Maturity of Debentures/ Bonds
- Public Provident Fund (PPF) Balances
- Rental Income
- Unutilised Foreign Funds, including funds transferred from NRE SB/ FD
- Sale of property purchased from funds remitted from overseas or NRE/ FCNR accounts
- Sale of property purchased from Rupee Source (while resident in India)
- Funds from Cancellation or Refund of application for Purchase of Property
- Sale of shares or mutual funds
- Repayment of loan from close relative
- Repayment of loan from an individual other than a close relative
Contact SBNRI
If you have any queries regarding the process of repatriation through outward remittance from India to abroad and the tax angle associated with it, ask our tax expert now using the button below. Also, visit our blog and YouTube channel for more details.
FAQs
Can I transfer money to an NRO Account from abroad?
- Yes. NRIs can transfer money to NRO Account from abroad. The permissible credits in an NRO Account are:
- Inward Remittances from outside India
- Interest earned on the NRO account balance
- Gifts in INR or loans taken from any resident or NRE/NRO account holder
- Transfers from your own or any other NRE/NRO account
- Any income generated in India for which the taxes are not deducted at source
How to open an NRI Bank Account?
- Every major bank in India has its own unique process for opening NRI Bank Accounts. To know about the account opening process of top banks in India, click here.
Is NRO to NRE fund transfer allowed?
- Yes, NRO to NRE Fund transfer is allowed. The mandate of the Reserve Bank of India (RBI) allows the transfer of funds up to USD 1 million a year from an NRO to an NRE account.
Can I transfer money from NRO to NRE HDFC?
- Yes, you can transfer money from your HDFC NRO bank account to HDFC NRE Bank Account.
What is the transfer limit for HDFC NRO account?
- You can transfer up to USD 1 million in one financial year after the payment of applicable taxes from your HDFC NRO account. They need to submit the required documents along with Form 15CA and 15CB/CA certification.
In what currency can I conduct transactions using the HDFC NRE savings account?
- You can carry out all transactions in Indian rupees only. However, you can deposit funds in different foreign currencies which will be converted on your request to conduct transactions in Indian rupees.
Can I repatriate funds from my HDFC NRE savings account?
- Yes, you can repatriate funds freely between India and your country of residence.
What currency an NRO savings account is maintained in?
- Your savings account is maintained in Indian Rupees.
What is the minimum amount required to open an HDFC NRO Savings Account?
- The minimum amount required to open an HDFC NRO Savings Account is INR 10,000 or its equivalent in foreign currency. The same amount is required to maintain an Average Monthly Balance with HDFC Bank.
