Geeta Anand asked on 23/03/2020

Can I transfer funds from NRE to NRO account?

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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.

 

transfer funds from nre to nro account

 

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.

 

Open NRE Bank Bank Account Now

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