Non-Resident Indian(NRIs) and Overseas Citizen of India (OCIs) manage their expenses in India through two types of accounts: the Non-Resident External (NRE) account and the Non-Resident Ordinary (NRO) account. Many banks provide the facility of transferring funds from the NRO to the NRE account. State Bank of India(SBI) is one such bank that offers an effortless and efficient NRO-to-NRE fund transfer service. In this blog, we’ll guide you through the step-by-step process of NRO to NRE Transfer SBI Bank, documents required, charges, and more.
SBNRI has partnered with Nium: Global Payment Services to facilitate instant online funds transfer to India at a minimal cost.
What are SBI NRE and NRO Accounts?
SBI offers two types of NRI bank accounts:
- SBI NRE Account (Non-Resident External Account): The NRE Account is a type of bank account that allows NRIs to hold and manage their foreign earnings in India in Indian Rupees.
- SBI NRO Account ( Non-Resident Ordinary Account): This is another type of bank account to manage the income earned in India, such as rental income, dividends, pension, etc.
Also read: NRE VS NRO: Selecting the Right Bank Account for NRIs
NRO to NRE Transfer SBI Bank: Step-by-Step Guide
NRIs (Non-Resident Indians) can easily transfer funds from an SBI NRO account to an SBI NRE account provided they submit all the necessary documents and ensure that the total amount of funds transferred to the NRE account and repatriated abroad through the NRO account within the current financial year does not exceed the USD one million limit.
Also read: NRE to NRO Fund Transfer: Ultimate Guide 2024
Process of NRO to NRE Transfer SBI Bank
To transfer funds from your SBI NRO Account to NRE account, follow the step-by-step procedure outlined below:
- Log in to your SBI Bank Internet Banking account.
- Select the option ‘Transfer funds to an Overseas account from NRO Account.’
- Choose ‘Repatriation from NRO 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.
Documents Required for NRO to NRE Funds Transfer SBI Bank
When you are transferring money from NRO to NRE account you need to gather all the important documents like:
- Form 15CA and 15CB: These are crucial documents for tax compliance.
- NRO to NRE Transfer form: NRIs/OCIs need to fill out the NRO to NRE transfer form and submit it to the bank to transfer funds.
- Identity and address proof: Valid Passport/ OCI Card/ PIO Card, Address proof of both India and Overseas.
- Bank statement: Statement of your NRO account to prove the source of the fund.
- A signed cheque for the transfer of funds from the NRO to the NRE account.
- FEMA (Foreign Exchange Management Act) declaration.
- Documentary proof of source of funds.
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.
Limit on Transfer of Funds from SBI NRO to NRE Bank Account
The Reserve Bank of India allows you to transfer funds up to USD 1 million a year from an NRO to an NRE account.
Charges on Transfer of Funds from SBI NRO to NRE Transfer of Funds
SBI 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 SBI Bank NRO to NRE Funds
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
- Yes, it is possible to transfer but RBI guidelines govern it.These guidelines are:
- Quantum transfer of money: Money transfer limit per financial year is USD 1 Million.
- Tax compliances: Any tax on the amount in NRO should be paid before transfer.
- Form 15CA AND 15CB: Mandatory certificates required by the Income Tax Department of India.
What is the limit of NRO account transfer?
- The transfer limit is USD 1 million per financial year.
What are the Benefits of an NRE account?
- Access to foreign currency
- Tax-free income
- High security
- Offer competitive interest rates
How can I avoid TDS on my NRO account?
- The NRO account TDS rate is 30%, and it applies directly to the interest earned on the account. If the interest earned on the NRO account is less than Rs. 50,000 in a financial year, then there is no TDS on the NRO account. This means that NRIs with lower income do not have to pay any TDS on their NRO account income.
Can my friend transfer money to my NRE account?
- Yes, NRE to NRE account is allowed like other transactions from self or friend’s account.
Is 15CB required for transfer from NRO to NRE?
- Form 15CB is 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.
Is TDS applicable on transfer from NRO to NRE account?
- No, TDS is not applicable on transfer from NRO to NRE accounts.
