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 NRO to NRE transfer. ICICI Bank is one such bank that offers a seamless and efficient NRO-to-NRE fund transfer service. In this blog, we will give a step-by-step process of NRO to NRE transfer ICICI Bank along with the documents required for the process.
SBNRI has partnered with Nium: Global Payment Services to facilitate instant online funds transfer to India at a minimal cost.
What are ICICI NRO and NRE Accounts?
ICICI Bank offers two types of NRI banks accounts:
- ICICI 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.
- ICICI NRO Account(Non-Resident Ordinary Account): The NRO Account is another type of bank account to manage income earned in India, such as rental income, dividends, pensions, etc.
Also read: NRE VS NRO: Selecting the Right Bank Account for NRIs
ICICI Bank NRO to NRE Fund Transfer
NRIs (Non-Resident Indians) can easily do ICICI NRO to NRE transfer of funds 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.
Also read: NRE to NRO Fund Transfer: Ultimate Guide 2024
Process of ICICI Bank NRO to NRE Fund Transfer
For NRO to NRE funds transfer, 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 do NRO to NRE ICICI funds transfer.
Points to Remember
- All documents should be self-attested.
- 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.
Documents Required for ICICI NRO to NRE Transfer
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.
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 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 ICICI Bank NRO to NRE Account
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 ICICI Bank NRO to NRE Account
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 ICICI 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
How to transfer money from NRO to NRE account in ICICI Bank Online?
- First, Login to ICICI Bank Internet Banking.
- Click on ‘Funds Transfer’ option under ‘Payments and Transfer’ Under ‘Overseas Account using Money2World’
- Select ‘Repatriation from NRO SB via Wire Transfer’
What is the process for NRO to NRE funds transfer?
Yes, it is possible to transfer but it is governed by RBI guidelines.
- These guidelines are:
- Quantum transfer of money, Money transfer limit per financial year is USD1 Million.
- Tax compliances, any tax on the amount in NRO should be paid before transfer.
- Form 15CA AND 15CB, Mandatory certificates required by income tax department of india.
What is the limit of NRO account transfer?
- The transfer limit is USD 1 million per financial year.
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 my parents deposit money in an NRO account?
- Yes, As per the RBI guidelines gifts and loans received from specified family and relatives can be deposited in the NRO account. The amount that each of the specified relatives can lend you has been restricted to 2.50 lakh USD every year.
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 NRO account. This means that NRIs with lower income do not have to pay any TDS on their NRO account income.
In what currency can I conduct transactions using the ICICI 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.
What currency an NRO savings account is maintained in?
- Your savings account is maintained in Indian Rupees.
