What are the restrictions on NRE accounts?
SBNRI Team
answered on 23/03/2020
There are certain restrictions on NRE Accounts. NRIs cannot deposit the following funds in the NRE account because NRE accounts are used to maintain the income earned outside India:
- Cash in Indian Rupees
- Gifts received in India
- Any income generated in India for which the taxes are not deducted at source
Along with restrictions on NRE Accounts, there are certain credits that are permissible as well, which are:
Permissible Credits in NRE Account
Credits refer to the money that can be deposited in a bank account. The permitted credits in an NRE Account are:
- Inward remittance from outside India
- Interest earned on the money deposited in the NRE account
- Interest on investments made through the NRE Account
- Transfer from other NRE/ FCNR(B) accounts
- Maturity gains from investments (if such investments were made from this account or through inward remittance)
Process of repatriation from NRI Accounts
Accounts | Process | Limit |
1. ONLINE:
2. OFFLINE: Fill these 2 forms. (You can get them at the bank branch or download them online, sign them and send them to the bank branch in India via courier in case you are abroad.)
| No Limit | |
All the following documents are needed to be submitted at the Bank Branch (in India). You can either submit it when you arrive here or download it online and send the signed copies to bank branch via courier:
| USD 1 million | |
1. ONLINE:
2. OFFLINE: Fill these 2 forms. (You can get them at the bank branch or download them online, sign them and send them to the bank branch in India via courier in case you are abroad.)
| No Limit |
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