NRIs 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. ICICI Bank is one such bank that offers a seamless and efficient NRO to NRE fund transfer service. In this blog, we will walk you through the process of ICICI Bank NRO to NRE fund transfer along with the documents required for the process.
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What are ICICI NRO and NRE Accounts?
ICICI Bank offers two types of NRI banks accounts:
- 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.
- The NRO Account is another type of bank account to manage their income earned in India, such as rental income, dividends, pension, etc.
ICICI Bank NRO to NRE Fund Transfer
NRIs (Non-Resident Indians) can easily transfer funds from an ICICI bank NRO account to an NRE account provided they submit all the necessary documents and ensure that the total amount of funds transferred to the NRE account and/or repatriated abroad through the NRO account within the current financial year does not exceed the USD one million limit.
Process of ICICI Bank NRO to NRE Fund Transfer
To transfer funds from your NRO Account to NRE account, follow the step-by-step procedure outlined below:
- Log in to your ICICI 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.
Point to Remember
- Self-attested all the documents.
- ICICI Bank will verify all submitted transaction details and documents. In case of any discrepancies, you will receive an email on your registered email ID, requesting additional information or documents to complete the transaction.
- Keep in mind that the exchange rate validity is limited to two working days from the time of transaction initiation. After this period, the confirmed exchange rate will not apply, and the transaction will be completed at the prevailing exchange rate on the date of the transaction request’s completion.
- The transaction initiated date establishes a validity period of 15 days. If the transaction is not completed within this timeframe, the system will automatically cancel the transaction request.
List of the documents needed for transferring funds from an ICICI Bank NRO account to an NRE account, as specified by ICICI 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.
Form 15CA and 15CB
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 rather 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 NRO Account
You can transfer funds from an NRO account to the following options:
- Your ICICI NRE Account with the same Customer ID (select from the dropdown menu).
- Any other NRE Account with ICICI Bank under a different Customer ID (add such NRE Accounts by selecting Add Receiver).
- An Overseas Account.
Limit on Transfer of Funds from NRO to NRE
The limit on transfer of funds from ICICI 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 NRO to NRE
ICICI bank charges no fee for online transfer of funds from 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
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.